Market Entry Through Multilateral Networks in Developing Countries: The Case of Public–Private Development Partnership in Zambia
Brockmann-Hosseini, Navid Jell-Ojobor, Maria
Windsperger, Josef
Brockmann-Hosseini, Navid
Windsperger, Josef
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Abstract
Globalization and increased market saturation in most developed countries have prompted private sector firms to expand into international markets that offer growth potential. Thus, increasingly, private firms channel foreign direct investments into such markets, which are located in untapped developing countries. At the same time, the local economies in developing countries often lack technology, education, or access to international trade. Furthermore, foreign multinational companies need market-relevant knowledge and skills. Therefore, the format of public–private development partnerships (PPDPs) seems to combine the needs of the private and public sectors. Such partnerships also try to improve the economic prospects and livelihoods of people in developing countries. We explore the case of the Volvo Group forming a PPDP in Zambia to improve our understanding of how MNCs enter the market in developing countries using this format. Based on transaction cost theory, institutional theory, and resource-based theory, we find that PPDPs help reduce transaction costs, mitigate institutional risks, and create unique resources for multinational companies entering less developed countries. Ultimately, our results contribute to the understanding of value creation for PPDP’s stakeholders from developed and developing countries.
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Date
2023
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Research Projects
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Keywords
Developing countries, Foreign direct investment, Public–private development partnerships, Sustainable development
Citation
Brockmann-Hosseini, Navid, Maria Jell-Ojobor, and Josef Windsperger. “Market Entry Through Multilateral Networks in Developing Countries: The Case of Public–Private Development Partnership in Zambia.” In Networks in International Business: Managing Cooperatives, Franchises and Alliances, edited by George WJ Hendrikse, Gérard Cliquet, Ilir Hajdini, Aveed Raha, and Josef Windsperger, 279–307. Cham: Springer International Publishing. 2023.