Multinationals, Local Capacity Building and Development: The Role of Chinese and European MNEs PDF
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Multinationals, Local Capacity Building and Development M4697-FU_9781788113571_t.indd 1 25/04/2019 13:55 NEW HORIZONS IN INTERNATIONAL BUSINESS Series Editor: Peter J. Buckley, Centre for International Business, University of Leeds (CIBUL), UK The New Horizons in International Business series has established itself as the world’s leading forum for the presentation of new ideas in international business research. It offers pre-eminent contributions in the areas of multinational enterprise – including foreign direct investment, business strategy and corporate alliances, global competitive strategies, and entrepreneurship. In short, this series constitutes essential reading for academics, business strategists and policy makers alike. Titles in the series include: Innovation and Institutional Embeddedness of Multinational Companies Edited by Martin Heidenreich The Changing Face of US Patent Law and its Impact on Business Strategy Edited by Daniel R. Cahoy and Lynda J. Oswald The Global Brewery Industry Markets, Strategies, and Rivalries Edited by Jens Gammelgaard and Christoph Dörrenbächer Restoring America’s Global Competitiveness through Innovation Edited by Ben L. Kedia and Subhash C. Jain Collective Knowledge Management Foundations of International Business in the Age of Intellectual Capitalism Haruo H. Horaguchi Internationalization of Firms from Economies in Transition The Effects of a Politico-Economic Paradigm Shift Edited by Mai Thi Thanh Thai and Ekaterina Turkina Emerging Markets and the Future of the BRIC Nations Edited by Ben L. Kedia and Kelly Aceto Emerging Dynamics of Sustainability in Multinational Enterprises Edited by John R. McIntyre, Silvester Ivanaj, Vera Ivanaj and Rabi N. Kar The Evolution of the World Economy The ‘Flying-Geese’ Theory of Multinational Corporations and Structural Transformation Terutomo Ozawa Emerging Asian Economies and MNCs Strategies Edited by Robert Taylor and Bernadette Andreosso-O’Callaghan The Development of International Business A Narrative of Theory and Practice Robert Pearce The Global Factory Networked Multinational Enterprises in the Modern Global Economy Peter J. Buckley CSR and Climate Change Implications for Multinational Enterprises Edited by John R. McIntyre, Silvester Ivanaj and Vera Ivanaj Comparative Capitalism and the Transitional Periphery Firm Centred Perspectives Edited by Mehmet Demirbag and Geoffrey Wood Multinationals, Local Capacity Building and Development The Role of Chinese and European MNEs Xiaolan Fu, George Owusu Essegbey and Godfred Kwasi Frempong M4697-FU_9781788113571_t.indd 2 25/04/2019 13:55 Multinationals, Local Capacity Building and Development The Role of Chinese and European MNEs Xiaolan Fu Technology and Management Centre for Development (TMCD), Department of International Development, Oxford University, UK George Owusu Essegbey Science and Technology Policy Research Institute (STEPRI), Council for Scientific and Industrial Research (CSIR), Accra, Ghana Godfred Kwasi Frempong Science and Technology Policy Research Institute (STEPRI), Council for Scientific and Industrial Research (CSIR), Accra, Ghana NEW HORIZONS IN INTERNATIONAL BUSINESS Cheltenham, UK • Northampton, MA, USA M4697-FU_9781788113571_t.indd 3 25/04/2019 13:55 © Xiaolan Fu, George Owusu Essegbey and Godfred Kwasi Frempong 2019 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2018967385 This book is available electronically in the Social and Political Science subject collection DOI 10.4337/9781788113588 ISBN 978 1 78811 357 1 (cased) ISBN 978 1 78811 358 8 (eBook) Typeset by Servis Filmsetting Ltd, Stockport, Cheshire 2 0 M4697-FU_9781788113571_t.indd 4 25/04/2019 13:55 Contents About the authors vi Acknowledgements viii 1 Introduction 1 2 MNEs, managerial knowledge transfer and local capability building: Conceptual framework 15 3 MNEs and the industrial sector in Ghana 26 4 Management practices of MNEs in Ghana 46 5 Knowledge transfer in MNEs in Africa: A comparison between Chinese and European MNEs in Ghana 67 Xiaolan Fu and Hao Xu 6 MNEs and managerial knowledge transfer to Africa: A comparison between Chinese and European MNEs in the construction sector in Ghana 95 Cyrielle Auffray and Xiaolan Fu 7 MNEs and their impact on local capabilities building and sustainable development 119 8 Conclusions and policy implications 132 References 142 Appendix: Questionnaires 156 Index 213 v M4697-FU_9781788113571_t.indd 5 25/04/2019 13:55 About the authors Xiaolan Fu is Founding Director of the Technology and Management Centre for Development (TMCD), Professor of Technology and International Development, University of Oxford. Her research interests include innovation, technology and industrialisation; trade, foreign direct investment and economic development. She is appointed by the Secretary- General of the United Nations to the Governing Council of the Technology Bank for the Least Developed Countries and to the 10-Member High- Level Advisory Group of the UN Technology Facilitation Mechanism. She has published extensively in leading international journals. Her recent books include China’s Path to Innovation, China’s Role in Global Economic Recovery, The Rise of Technological Power in the South and Exports, Foreign Direct Investment and Economic Development in China. She is Editor-in-Chief of Journal of Chinese Economic and Business Studies, and serves on the editorial boards of Industrial and Corporate Change and International Journal of Technology Management. George Owusu Essegbey is the Director of the Science and Technology Policy Research Institute (STEPRI) of the Council for Scientific and Industrial Research (CSIR) in Ghana, which is a partner in the MNEmerge consortium. He has served as a member of the country’s National Development Planning Commission (NDPC) until the Commission was reconstituted. He has several years of experience in Science and Technology (S&T) policy research, innovation studies, research on new technologies, climate change and sustainable agriculture. He has published widely. Dr Essegbey has served various national and international organisations with his expertise including FAO, UNESCO, UNCTAD, UNEP, WIPO and the World Bank. He was a member of the 10-Member Expert Group supporting the United Nations Technology Facilitation Mechanism with the UN Inter-agency Task Team on Science, Technology and Innovation (STI) for the SDGs. Godfred Kwasi Frempong is a Chief Research Scientist and former Deputy Director of the Science and Technology Policy Research Institute (STEPRI) of the Council for Scientific and Industrial Research (CSIR) in Ghana. He has been involved in policy research for several years in vi M4697-FU_9781788113571_t.indd 6 25/04/2019 13:55 About the authors vii diverse disciplines such as SMEs and industry development, innovation studies, STI and ICTs. He has published extensively in diverse disciplines. Godfred Frempong has attracted research funding from several inter- national organisations such as UN Economic Commission for Africa, International Development Research Centre of Canada, European Union, Danish Development Agency, INREF of Wageningen University and Research and World Bank Institute among others. He is a member of the Steering Committee of the African Academic Network on Internet Policy based in Ibadan, Nigeria. He is a member of AEH Development Institute and AIRNET all based in Lusaka, Zambia. AIRNET is an independent and continental interdisciplinary research network that seeks to infuse entrepreneurship into technology and innovation research, project design and implementation to support development. M4697-FU_9781788113571_t.indd 7 25/04/2019 13:55 Acknowledgements The growth and development in the African continent for greater prosper- ity have been very important for policy making and academic research. More importantly, rapid and sustained development of Africa will improve the life of the people as well as meeting the targets of the various global development agenda. This has been our passion. Multinational enterprises (MNEs) can play a very important role. The experiences of East Asia and China suggest such a possibility. However, we know very little about its role in Africa, especially in terms of developing managerial capabilities, which, as argued by some, is the bottleneck of industrialisation in the continent. This book emanated from four years’ collaboration between the authors. We are grateful to Juha Vaatanen, Pervez Ghauri, Shyama Ramani, Bruno Woeran, Suraksha Gupta, Michiko Iizuka, Augusto Luis Alcorta (Project Consortium members), Peter Buckley and other colleagues for helpful comments. We are grateful to Serena Masino, Jun Hou, Mavis Akuffobea and Shaheen Akter for their excellent research assistance and contributions to some of the chapters of this book. The authors extend their gratitude to the management and staff of Vodafone Ghana, Huawei Ghana, Ghana Textiles Printing Company Ltd. (GTP), Akosombo Textiles, GoKals- Laborex, Sanbao Pharmaceutical, Acticon and Top International who generously agreed to participate in the study. Chapter 5 is co-authored by Xiaolan Fu and Hao Xu. Chapter 6 is mainly extracted from a published paper co-authored by Cyrielle Auffray and Xiaolan Fu which appeared in the Journal of Chinese Economic and Business Studies. We are grateful for the kind permission of Taylor and Francis for the reuse of this material and to the co-authors for their agree- ment to include their work in this book. The authors are grateful to the European Union under the Seventh Framework Programme for financial support on a research entitled ‘MNEmerge: A Framework Model on MNE’s Impact on Global Development Challenges in Emerging Markets’ (Grant Number: 612889). The study also benefited from the support of the United Nations Industrial Development Organization (UNIDO). viii M4697-FU_9781788113571_t.indd 8 25/04/2019 13:55 Acknowledgements ix For their invaluable support and assistance in the field, in coordinating the project and in editing this report, Chiyi Tam, Zifu Wang, Justina Onumah, Portia Adade-Williams, Nana Yamoah Asafo Adjaye, Emmanuel Jumper, Geraldine Adiku and the enumerators are greatly acknowledged. M4697-FU_9781788113571_t.indd 9 25/04/2019 13:55
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