Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-76fb5796d-dfsvx Total loading time: 0 Render date: 2024-04-26T04:56:49.041Z Has data issue: false hasContentIssue false

13 - Building Institutions or Capital Investment? Organisational Duality in the Pursuit of Socio-Economic Development

from Part II - Exploiting Institutional Voids by Design

Published online by Cambridge University Press:  14 November 2019

By
Nuno Gil ,
Jeff Pinto  and
Rehema Msulwa
Edited by
Nuno Gil ,
Anne Stafford  and
Innocent Musonda
Nuno Gil
Affiliation:
University of Manchester
Anne Stafford
Affiliation:
University of Manchester
Innocent Musonda
Affiliation:
University of Johannesburg
Get access

Summary

This inductive study proposes a duality in the design of organisations set up to pursue socio-economic development. Dualities exist when organisations pursue objectives that are jointly desirable, but difficult to reconcile. We ground the research on a sample of inter-organisational contexts set up to pursue development by way of improving basic transport infrastructure in two of Africa’s fast-growing cities, Lagos (Nigeria) and Kampala (Uganda). Our findings reveal sharp variation in the way two desirable objectives are prioritised: to build capital public goods and build the local institutions. When the institutional intermediary that brokers resource exchanges is a ‘traditional’ development agency, e.g. the World Bank, the focus is on building institutions.

Type
Chapter
Information
Duality by Design
The Global Race to Build Africa's Infrastructure
 , pp. 378 - 410
Publisher: Cambridge University Press
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, D. and Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. London and New York: Crown Publishers.Google Scholar
Alacevich, M. (2014). Visualizing uncertainties, or how Albert Hirschman and the World Bank disagreed on project appraisal and what this says about the end of ‘high development theory’. Journal of the History of Economic Thought, 36, 137–168.Google Scholar
Armanios, D. E., Eesley, C. E., Li, J. and Eisenhardt, K. M. (2017). How entrepreneurs leverage institutional intermediaries in emerging economies to acquire public resources. Strategic Management Journal, 1373–1390.Google Scholar
Baldwin, C. Y. (2014). Bottlenecks, modules and dynamic capabilities. Harvard Business School Working Paper, No. 15–028, October 2014. (Revised May 2015.)Google Scholar
Baum, W. C. (1978). The World Bank project cycle. Finance and Development 15(4): 10–17.Google Scholar
Biernacki, P. and Waldorf, D. (1981). Snowball sampling: Problems and techniques of chain referral sampling. Sociological Methods & Research, 10: 141–163.Google Scholar
Birkinshaw, J., and Gibson, C. (2004). Building ambidexterity into an organisation. MIT Sloan Management Review , 45(4): 47–55.Google Scholar
Boehm, B. W. (1981). Software engineering economics. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Brautigam, D. (2009. The dragon’s gift: The real story of China in Africa. Oxford: Oxford University Press.Google Scholar
Brewer, N. (2008). The new Great Walls: A guide to China’s overseas dam industry. Berkeley, CA: International Rivers.Google Scholar
Brown, S. L. and Eisenhardt, K. M. (1997). The art of continuous change: Linking complexity theory. Administrative Science Quarterly , 42(1): 1–34.Google Scholar
Brooks, F. P. Jr. (1995). The mythical man-month: Essays on software engineering. Anniversary Edition. Indiana: Addison-Wesley Longman.Google Scholar
Burns, T. and Stalker, G. M. (1961). The management of innovation. London: Tavistock.Google Scholar
Burnside, C. and Dollar, D. (2000). Aid, policies, and growth. American Economic Review, 90 (4) (September): 847–68.Google Scholar
Chauvet, L. and Collier, P. (2004, January). Development effectiveness in fragile states: Spillovers and turnarounds. Oxford: Centre for the Study of African Economies, Department of Economics, Oxford University.Google Scholar
Cleland, D. I. and King, W. R. (1968). Systems analysis and project management. New York, NY: McGraw-Hill.Google Scholar
Cooper, R. (1990). Stage-gate systems: A new tool for managing new products. Business Horizons, 33(3): 44–55.Google Scholar
Cyert, M. D. and March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Dahan, N., Doh, J. P., Oetzel, J. and Yaziji, M. (2010). Corporate-NGO collaboration: Creating new business models for developing markets. Long Range Planning, 43: 326–342.Google Scholar
Delios, A. and Henisz, W. J. (2000). Japanese firms’ investment strategies in emerging economies. Academy of Management Journal , 43(3): 305–323.Google Scholar
Dieleman, M., and Boddewyn, J. (2012). Using organisation structure to buffer political ties in emerging markets: A case study. Organisation Studies, 33: 71–95.CrossRefGoogle Scholar
Doh, J., Rodrigues, S., Saka-Helmhout, A. and Makhija, M. (2017). International business responses to institutional voids. Journal of International Business Studies, 48(3): 293–307.Google Scholar
Dorobantu, S., Kaul, A. and Zelner, B. (2017). Nonmarket strategy research through the lens of new institutional economics: An integrative review and future directions. Strategic Management Journal, 38(1): 114–140.Google Scholar
Dreher, A. and Fuchs, A. (2011). Rogue aid? The determinants of China’s aid allocation. Courant Research Centre, ‘Poverty, Equity and Growth’. Discussion Paper 93, University of Goettingen.Google Scholar
Dutt, N., Hawn, O., Vidal, E., Chatterji, A., McGahan, A. and Mitchell, W. (2015). How open system intermediaries address institutional failures: The case of business incubators in emerging-market countries. Academy of Management Journal, 59, 818–840.Google Scholar
Eesley, C. (2016). Institutional barriers to growth: Entrepreneurship, human capital and institutional change. Organisation Science , 27 (5): 1290–1306.Google Scholar
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4): 532–550.Google Scholar
Eisenhardt, K. M. and Tabrizi, B. N. (1995). Accelerating adaptive processes: Product innovation in the global computer industry. Administrative Science Quarterly, 40(1): 84–110.Google Scholar
Eisenhardt, S., Graebner, M. E. and Sonenshein, S. (2016). Grand challenges and inductive methods: Rigor without rigor mortis. Academy of Management Journal, 59(4): 1113–1123.Google Scholar
Eom, J., Hwang, J., Atkins, L., Chen, Y. and Zhou, S. (2017). China Africa Research Initiative at the School of Advanced International Studies. Policy Brief No. 18. Johns Hopkins University.Google Scholar
Evans, P. and Doz, Y. (1989). The dualistic organisation. In Laurent, A. (Ed.), Human resource management in international firms. Basingstoke, UK: Macmillan.Google Scholar
Fjeldstad, Ø. D., Snow, C. C., Miles, R. E., Lettl, C. (2012). The architecture of collaboration. Strategic Management Journal, 33: 734–750.Google Scholar
Fligstein, N. (1996). Markets as politics: A political-cultural approach to market institutions. American Sociological Review, 61(4): 656–673.Google Scholar
Flyvbjerg, B., Bruzelius, N. and Rothengatter, W. (2003). Megaprojects and risk: An anatomy of ambition. Cambridge, UK: Cambridge University Press.Google Scholar
Freeland, R. F. and Sivan, E. W. Z. (2018). The problems and promise of hierarchy: voice rights and the firm. Sociological Science, 5(7): 143–181.Google Scholar
Gavetti, G., and Levinthal, D. (2000). Looking forward and looking backward: Cognitive and experiential search. Administrative Science Quarterly, 45: 113–137.Google Scholar
Gehman, J., et al. (2017). Finding theory–method fit: A comparison of three qualitative approaches to theory building. Journal of Management Inquiry, 27(3): 284–300.Google Scholar
George, G., Corbishley, C., Khayesi, J. N. O., Haas, M. R. and Tihanyi, L. (2016). Bringing Africa in: Promising directions for management research. Academy of Management Journal, 59(2): 377–393.Google Scholar
George, G., McGahan, A. M. and Prabhu, J. (2012). Innovation for inclusive growth: Towards a theoretical framework and a research agenda. Journal of Management Studies, 49: 661–683.Google Scholar
Gibson, C. B. and Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organisational ambidexterity. Academy of Management Journal, 47(2): 209–226.Google Scholar
Gil, N. and Tether, B. (2011). Project risk management and design flexibility: Analyzing a case and conditions of complementarity. Research Policy, 40, 415–428.Google Scholar
Gulati, R. and Puranam, P. (2009). Renewal through Reorganisation. Organisation Science, 20(2): 422–40.Google Scholar
Gulati, R., Puranam, P. and Tushman, M. (2012). Meta-organisation design: Rethinking design in inter-organisational and community contexts. Strategic Management Journal, 33: 571–586.Google Scholar
Gupta, S., Kangur, A., Papageorgiou, C. and Wane, A. (2014). Efficiency-adjusted public capital and growth. World Development , 57, May: 164–178.Google Scholar
Henderson, J. (2008). China and global development: Towards a Global-Asian era? Contemporary Politics, 14(4): 375–392.Google Scholar
Henderson, J., Appelbaum, R. P. and Ho, S. Y. (2013). Globalization with Chinese characteristics: Externalization, dynamics and transformations. Development and Change, 44: 1221–1253.Google Scholar
Henisz, W. J. (2002).The institutional environment for infrastructure investment. Industrial and Corporate Change, 11(2): 355–389.Google Scholar
Henisz, W. J., Dorobantu, S. and Nartley, L. J. (2014). Spinning gold: The financial returns to stakeholder engagement. Strategic Management Journal, 35 (12): 1727–1748.Google Scholar
Hermes, N., and Lensink, R. (eds.) (2001). Changing the conditions for development aid: A new paradigm. London: Frank Cass.Google Scholar
Hernandez, D. (2017). Are ‘new’ donors challenging World Bank conditionality? World Development, 96 (August): 529–549.Google Scholar
Hilling, D. (1996). Transport and developing countries. London: Routledge.Google Scholar
Hirschman, A. O. (1967). Development projects observed. Washington, DC: Brookings Institution.Google Scholar
Hirschman, A. O. (1984). A dissenter’s confession: The strategy of economic development revisited, in Meyer, G. M. and Seers, D. (Eds.), Pioneers in development. Oxford: Oxford University Press.Google Scholar
Hwang, J. and Bral, D. (2016). How Chinese money is transforming Africa: It’s not what you think. Policy Brief 11/2016, China Africa Research Initiative at the School of Advanced International Studies. Baltimore, MD: Johns Hopkins University.Google Scholar
Iansiti, M. (1995). Shooting the rapids: Managing product development in turbulent environments. California Management Review, 38(1): 37–58.Google Scholar
Jick, T. D. (1979). Mixing qualitative and quantitative methods: Triangulation in action. Administrative Science Quarterly, 24(4): 602–611.Google Scholar
Kaufmann, D. and Kraay, A. (2017). Worldwide governance indicators project. The World Bank. info.worldbank.org/governance/wgi/pdf/wgidataset.xlsx.Google Scholar
Khanna, T. K. and Palepu, K. G. (1997). Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4): 41–54.Google Scholar
Khanna, T. and Palepu, K. G. (2010). Winning in emerging markets: A road map for strategy and execution. Boston, MA: Harvard Business Press.Google Scholar
Kistruck, G. M., Sutter, C. J., Lount, R. B., Jr. and Smith, B. (2013). Mitigating principal-agent problems in base-of-the-pyramid markets: An identity spillover perspective. Academy of Management Journal, 56: 659–82.Google Scholar
Kivleniece, I. and Quelin, B. V. (2012). Creating and capturing value in public-private ties: A private actor’s perspective. Academy of Management Review, April, 37(2): 272–299.Google Scholar
Knack, S. F. (2003). Democracy, governance, and growth. Ann Arbor, MI: The University of Michigan Press.Google Scholar
Kogut, B. and Zander, U. (1996). What firms do? Coordination, identity, and learning. Organization Science, 7(5): 502–518.Google Scholar
Lakhani, K. R. and von Hippel, E. (2003). How open source software works: ‘Free’ user-to-user assistance. Research Policy, 32(6): 923–943.Google Scholar
Langley, A. (1999). Strategies for theorizing from process data. Academy of Management Review, 24: 691–710.Google Scholar
Lawrence, P. R. and Lorsch, J. W. (1967). Organisation and environment: Managing differentiation and integration. Boston, MA: Harvard Business School.Google Scholar
Lazzarini, S. G. (2015). Strategizing by the government: Can industrial policy create firm‐level competitive advantage? Strategic Management Journal, 36(1): 97–112.Google Scholar
Lee, G. K. and Cole, R. E. (2003). From a firm-based to a community-based model of knowledge creation: The case of the Linux kernel development. Organisation Science, 14(6): 633–649.Google Scholar
Levy, B. (2014). Working with the grains: Integrating governance and growth in development strategies. New York, NY: Oxford University Press.Google Scholar
Maguire, S., Hardy, C. and Lawrence, T. B. (2004). Institutional entrepreneurship in emerging fields: HIV/AIDS treatment advocacy in Canada. Academy of Management Journal, 47: 657–679.Google Scholar
Mair, J., Marti, I. and Ventresca, M. J. (2012). Building inclusive markets in rural Bangladesh: how intermediaries work institutional voids. Academy of Management Journal, 55(4): 819–850.Google Scholar
March, J. G. (1991). Exploration and exploitation in organisational learning. Organisational Science, 2(1): 71–87.Google Scholar
Martens, B. (2005). Why do aid agencies exist? Development Policy Review, 23(6): 643–663.Google Scholar
McDermott, G. A., Corredoira, R. A. and Kruse, G. (2009). Public–private institutions as catalysts of upgrading in emerging market societies. Academy of Management Journal, 52(6): 1270–1296.Google Scholar
McLean, E. V. and Schneider, C. J. (2014). Limits of informal governance? The scope of conditionality in the World Bank. Annual Meeting on the Political Economy of International Organisations. Princeton, NJ.Google Scholar
Meyer, K. E., Estrin, S., Bhaumik, S. K. and Peng, M. W. (2009). Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal, 30(1): 61–80.Google Scholar
Meyer, K. E. and Peng, M. W. (2016). Theoretical foundations of emerging economy business research. Journal of International Business Studies, 47(1): 3–22.Google Scholar
Miles, M. B. and Huberman, A. M. (1984). Qualitative data analysis: A sourcebook of new methods. Beverly Hills, CA: Sage Publications.Google Scholar
Milgrom, P. and Roberts, J.(1990). The economics of modern manufacturing: Technology, strategy, and organization. American Economic Review, 80(3): 511–528.Google Scholar
Mohan, G. B. and Lampert, B. (2013). Negotiating China: Reinserting African agency into China–Africa relations. African Affairs, 112(446): 92–110.CrossRefGoogle Scholar
Morris, P. W. (1994). The management of projects. London: Thomas Telford.Google Scholar
Moyo, D. (2009). Dead aid: Why aid is not working and how there is a better way for Africa. London: Allen Lane.Google Scholar
Naim, M. (2007). Rogue aid. Foreign Policy, 159: 95–96.Google Scholar
Narayanan, V. K., and Fahey, L. (2005). The relevance of the institutional underpinnings of Porter’s five forces framework to emerging economies: An epistemological analysis. Journal of Management Studies, 42: 207–223.Google Scholar
North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1): 97–112.Google Scholar
North, D. C. and Weingast, B. R. (1989). Constitutions and commitment: The evolution of institutions governing public choice in seventeenth-century England. The Journal of Economic History, XLIX(4): 802–832.Google Scholar
OECD. (2014). Aid to developing countries rebounds in 2013 to reach an all-time high. Paris: OECD.Google Scholar
Oliveira, N. and Lumineau, F. (2017). How coordination trajectories influence the performance of interorganisational project networks. Organisation Science, 28 (6), 1029–1060.Google Scholar
Perrow, C. (1984). Normal accidents: Living with high-risk technologies. Princeton, NJ: Princeton University Press.Google Scholar
Porter, M. E. (1985). Competitive advantage. New York: Free Press.Google Scholar
Porter, T. M. (1995). Trust in numbers: The pursuit of objectivity in science and public life. Princeton, NJ: Princeton University PressGoogle Scholar
Regner, P. and Edman, J. (2014). MNE institutional advantage: How subunits shape, transpose and evade host country institutions. Journal of International Business Studies, 45: 275–301.Google Scholar
Rothaermel, F. T. and Boeker, W. (2008). Old technology meets new technology: Complementarities, similarities, and alliance formation. Strategic Management Journal, 29(1): 47–77.Google Scholar
Sachs, J.(2005). The end of poverty: How we can make it happen in our lifetime. London: Penguin Books.Google Scholar
Scott, W. R. (1981). Organisations: Rational, natural, and open systems. Englewood Cliffs NJ: Prentice Hall Inc.Google Scholar
Siggelkow, N. (2002). Misperceiving interactions among complements and substitutes: Organizational consequences. Management Science, 48(7): 900–916.Google Scholar
Simon, H. A. (1981). The sciences of the artificial. 2nd ed. Cambridge, MA: MIT Press.Google Scholar
Smith, W. K. and Tushman, M. L.(2005). Managing strategic contradictions: A top management model for managing innovation streams. Organisation Science, 16(5): 522–536.Google Scholar
Stokke, O. (1995). Aid and political conditionality. London: Frank Cass.Google Scholar
Strauss, A. and Corbin, J. M. (1990). Basics of qualitative research: Grounded theory procedures and techniques. Thousand Oaks, CA: Sage Publications.Google Scholar
Tan-Mullins, M., Mohan, G. and Power, M. (2010). Redefining ‘aid’ in the China–Africa context. Development and Change, 41: 857–881.Google Scholar
The Economist. (2009, 21 July). China’s ‘going out’ strategy.Google Scholar
Thomke, S. H. (1997). The role of flexibility in the development of new products: An empirical study. Research Policy, 26, 105–119.Google Scholar
Thompson, J. D. (1967). Organisations in action. New York: McGraw-Hill.Google Scholar
Tihanyi, L., Graffin, S. and George, G. (2014). Rethinking governance in management research. Academy of Management Journal, 57: 1535–1543.Google Scholar
Tull, D. (2006). China’s engagement in Africa: Scope, significance and consequences. Journal of Modern African Studies , 44(3): 459–79.Google Scholar
Tushman, M. L. and O’Reilly, C. A. (1996). Ambidextrous organisations: Managing evolutionary and revolutionary change. California Management Review, 38(4): 8–30.Google Scholar
UN. (2017). World population prospects: The 2017 revision, Department of Economic and Social Affairs, Population Division. New York: United NationsGoogle Scholar
Van der Vegt, G. S., Essens, P., Wahlström, M. and George, G. (2015). Managing risk and resilience. Academy of Management Journal, 58: 971–980.Google Scholar
Vines, A. and Campos, I. (2008). Angola and China: A pragmatic partnership? Washington, DC: Center for Strategic and International Studies.Google Scholar
WEF. (2018). The global competitiveness report 2017–2018. Edited by Schwab, Klaus. Geneva: World Economic Forum.Google Scholar
Wood, G. and Frynas, J. G. (2006). The institutional basis of economic failure: Anatomy of the segmented business system. Socio-Economic Review, 4: 239–277.Google Scholar
Woods, N. (2008). Whose aid? Whose influence? China, emerging donors and the silent revolution in development assistance. International Affairs , 84(6): 1205–21.Google Scholar
World Bank. (2011). World development report 2011: Conflict, security and development. Washington, DC: World Bank.Google Scholar
Yin, R. (1984). Case study research: Designs and methods. Los Angeles, CA: Sage Publications.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×