Dorothy McCormick

African Enterprise Clusters and Industrialization: Theory and Reality

Abstract Using six case studies from Africa, this paper examines the theoretical argument that geographic and sectoral clustering enables enterprises to overcome constraints to growth and development. Findings were both theoretical and practical. Theoretically, the study underscored the strength of the collective efficiency framework, but found that certain anomalies could only be explained by other contextual variables. Grouping the six case studies revealed important differences among them, and showed that each group plays its own part in the industrialization process. “Groundwork” clusters prepare the way; “industrializing” clusters begin the process of specialization, differentiation, and technological development; and “complex industrial” clusters produce competitively for wider markets. The paper concludes with practical implications for African governments, donors, and the business community.

African Business Systems In A Globalising World

The failure of structural adjustment programmes to promote industrialization in Africa may be at least partly explained by the fragmentation of African business systems. In Africa, the parastatal, foreign-dominated formal and indigenous informal sectors are poorly integrated, largely as a result of the institutional environment in which they have developed. The lack of supportive financial, state and social institutions inhibits trust and accountability, and impedes the access to capital, labour market flexibility, and sub-contracting, which are needed for modern industrial development. More research is needed, both detailed studies of business systems in individual African countries, and cross-country comparisons of the linkages between the economy and the wider social and institutional environment.

Growth and barriers to growth among Nairobi's small and medium-sized garment producers

Abstract Few of Nairobis small and medium-sized garment enterprises actually grow. Understanding why this should be so requires recognition both of their common problems and of the variations in their organization and market relations. Two factors appear critical for the growth of all of the producers: demand for new clothing and the firms initial capital. Other growth constraints differ according to the type of firm. Space constraints are highlighted as especially important for businesses presently operating in market stalls. The design of policy and donor interventions needs to consider both the commonalities and the differences among firms.

Urban self-employment in Kenya: Panacea or viable strategy?

Abstract Kenyas employment challenge is daunting, given the countrys continuing rapid population growth and already significant unemployment. Government documents give high priority to the promotion of rural nonagricultural self-employment, especially to stem migration, and to self-employment in urban small-scale enterprises. Yet formidable obstacles to self-employment remain. After placing urban self-employment in its broader employment context, this study examines the barriers to entry and growth in self-employment, especially the difficulties encountered by small-scale, unregistered, nonagricultural activities in urban areas. The study then reviews existing policies and programs aimed at supporting such activities and points to the need for more comprehensive policy analysis and reform.

Donor Proliferation and Co-ordination: Experiences of Kenya and Indonesia

One of the main problems associated with aid is the proliferation of donors and projects, and one of the main solutions is thought to lie in greater coordination between donors. This paper examines whether progress has been made in recent years, comparing two countries (Kenya and Indonesia) and two sectors.The research process itself, in particular the difficulty of obtaining seemingly straightforward information, provides insights into the fragmented aid business. Nevertheless the combination of quantitative and qualitative methods provides a clear overall picture: proliferation worsened between 2000 and 2005—06 while progress in coordination was uneven. Other findings concern the interdependence of donor coordination and intra-government coordination and the similarity of the overall experience of the two countries despite their different levels of economic development.

An Adaptive ICT-Enabled Model for Knowledge Identification and Management for Enterprise Development

Knowledge is vital in achieving enterprise growth and development. This paper argues that treating knowledge management as a Complex Adaptive System CAS presents an alternative lens within which processes within knowledge management can be better understood and hence allows scholars in enterprise development design successful intervention programs. The paper presents a conceptual and system dynamic model that reveals the structural underpinnings of knowledge identification and management and in so doing makes clear influence points where interventions can be made. The paper presents a systematic strategy of employing Information and Communication Technologies ICTs as interventions in the structural underpinnings of knowledge identification and management and models them within the system dynamic model. The system dynamic model developed is presented as a learning tool for researchers who can further modify it and apply in different scenarios. The validation of a section of the system dynamic model is done on a Micro and Small Enterprises MSEs association. The validation reveals conformity to the structural representation of the developed model in a real life scenario. However, differences are noticed in the ICT interventions that are employed. The paper also presents researchers and practitioners in enterprise development with a model that they can use to design intervention programs in knowledge management.

The Developmental Impact of Asian Drivers on Kenya with Emphasis on Textiles and Clothing Manufacturing

Abstract (1251) Paul Kamau with Dorothy McCormick and Nicolas Pinaud Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd.

ICT Powered Strategic Flexibility System Dynamic Model: A Pillar for Economic Development in Micro and Small Enterprises

Resource-Based View RBV of the firm in strategic management literature focuses on firm internal endowments in terms of resources, capabilities and dynamic capabilities for their development. By establishing a learning mechanism, where they are able to adapt and influence the environment, enterprises build a dynamic competence and sustainable competitive advantage. This paper posits that this dynamic competence or strategic flexibility as referred to by strategic management scholars is a phenomenon that needs to be understood by scholars and practitioners in MSEs so that effective intervention programs can be designed. The paper argues that by treating strategic flexibility as a CAS provides a methodology within which models based on known theories in strategic management are employed and tested using system dynamics. The paper also posits that System Dynamics SD modeling is a good modeling methodology that captures the dynamism in a CAS. The paper therefore presents a conceptual model for strategic flexibility and a system dynamic model that reveals the variables in play and their relationships. In so doing the paper exposes influence points in the CAS that act as intervention points by practitioners in strategic flexibility of firms. The paper presents ICTs as interventions at the influence points and presents a generic strategic flexibility system dynamic model that brings to play the impact of ICT.

The Asian Drivers and Africa: Learning from Case Studies

When the OECD Development Centre launched research in 2005 to document the economic, political and social impacts of China’s and India’s economic growth on sub-Saharan African (SSA) countries, the arrival (or resurgence) of new important players had triggered concerns among traditional donors. Accusations ran from free riding on Western debt relief over violation of governance standards and unfair company competition to fragmentation of aid delivery. At the same time, there was a tendency to neglect the diversity of SSA in terms of resource endowments, trade links and industrial development. It was time then to promote African voices from various backgrounds to reflect Africa’s heterogeneity. The introductory section presents a summary of findings about the economic impact of the two Asian giants in SSA countries by Africa-based economists, with three practical conclusions. First, African countries should favour strategies that minimise areas of direct competition with the Asian giants. Second, industrialisation strategies are required to exploit opportunities complementary to the Asian development path. Third, sectors of mutual interest should be identified in order to develop long-term views on how to cooperate with China and India and these views should be mainstreamed into national development plans.