Sub-Saharan Africa Macroeconomics and Socio-economic Demands

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Introduction

The concept of the international strategic alliance (ISA) and the international joint venture (IJV), on which the strategic international public-private partnership or SIPPP, the focus of this research, is modelled, grew in popularity from the 1970’s to the early 2000’s. This growth was driven primarily by the forces of globalisation and the desire by large conglomerates and successful domestic companies to take on a more multinational character by engaging in fruitful cross-border alliances (Gomes, Barnes, & Mahmood, 2016; Choi, Hise, Bagozzi, & Fadil, 2010; Robson, Katsikeas, & Bello, 2008; Kaufman & O’Neil. 2007; Simonin, 2004; Todeva, & Knoke, 2005). Often such partnerships involved for profit organisations driven by economic benefits, including (but not limited to): the expansion of the firm’s market base by entering new markets; the acquisition of unique and cheaper resources (new technology or labour); the development of new products; and the improvement of overall operational effectiveness (Choi et al., 2010). In simple terms, a firm engaged in a strategic alliance to obtain the resources that it needed but lacked, and then capitalised on the complementary resources provided by its partner (Das & Teng, 2000; Oliver, 1997; Simonin, 2004).

Background and Context

The popularity and proliferation of IJVs / ISAs has spawned a stream of rich literature examining all aspects of this institutional form, from formation to implementation, operation and performance (Christoffersen, 2013; Gomes et al., 2016; Robson et al., 2008). However despite being the subject of intensive research during the entire period from the early 1980’s until now, leading to a plethora of research literature, the core concepts of IJV / ISA operation and how relationships between culturally divergent partners develop are still largely clouded in mystery. This stems mainly from the inherent complexity of such partnerships / alliances and the involvement, by definition, of a mixture of different cultures (Ozorhon, Arditi, Dikmen & Birgonul, 2008). Furthermore, researchers have tended to focus predominantly on the formation stage and performance of the ISA / IJV (often viewed through the theoretical lens o one of the economic frameworks, such as Resource Based View or Transaction Cost Theory) but less so on the implementation and operating phases (Gomes, et al., 2016; Beamish & Lupton, 2009; Choi et al., 2010). The latter requires more of a focus on the interactive (dynamic) relationship-building processes. This may, to a certain extent, explain the relatively high failure rate observed for ISAs / IJVs and our inability to offer a satisfactory explanation (Choi et al., 2010; Gomes et al., 2016). According to this perspective, more attention needs to be given to how the partners should develop their relationship after the ISA / IJV is created
especially how they should collaborate to build mutual trust so that the alliance’s pooled resources can be effectively managed to drive value in the value chain in order to achieve the alliance’s business objectives (Choi, et al., 2010).

The Research Problem

Strategic cross-cultural alliances, where partners agree to pool their resources to achieve a particular purpose, whether driven by profit or non-profit motives, are, by their nature, complex organisations (Slater & Robson, 2012; Choi et al., 2010; Inkpen & Beamish, 1997; Kaufman & O’Neil. 2007; Simonin, 2004; Robson et al., 2008; Koschmann, Kuhn, & Pfarrer, 2012). Studies have generally shown that the building of trust among the partners in such crosscultural alliances is fundamental to achieving satisfactory outcomes for the alliance. This trust has been referred to by scholars as the relationship “building block” (Dash, Bruning, & Guin, 2007) or the “chemistry” (Inkpen & Birkenshaw, 1994) that ensures a successful outcome. Trust has been theorised to be the sentiment or expectation amongst the partners that each will perform actions that will result in positive outcomes for the other and not take opportunistic actions that would result in negative outcomes (Morgan & Hunt, 1994; Madhok, 1995a). A trust relationship is established when expectations are raised by one party and fulfilled by the other (Rodrίguez & Wilson, 2002; Caceres & Paparoidamis, 2007).

Relevance of the Research

The research has theoretical as well as practical relevance. From a theoretical perspective, the research contributes new knowledge to the existing body of knowledge on relational processes in ISAs and IJVs. Very few research studies have been done on SIPPPs, and even fewer within an emerging country context. None could be found involving SIPPPs operating in Africa. This study is, therefore, unique, being the first study of its kind focused on Africa, and makes a meaningful contribution to the domain of cross-cultural research by extending the research scope to include the SIPPP, a more complex form of either the ISA or the IJV, and by extending the geographical context to Africa, thereby contributing to the generalisation of prior research findings.

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Abstract
Declaration
Dedication
Acknowledgements
CHAPTER 1: INTRODUCTION
1.1. Introduction
1.2. Background and Context
1.3. The Research Problem
1.4. Purpose and Objectives of the Research
1.5. Scope and Approach of the Research
1.6. Relevance of the Research
1.7. Summary and Structure of the Thesis
CHAPTER 2: THE AFRICAN CONTEXT
2.1. Introduction
2.2. Sub-Saharan Africa Macroeconomics and Socio-economic Demands
2.3. The Role of the SIPPP in Infrastructure and Socio-economic Development in Sub Saharan Africa
2.4. Current Status of the SIPPP in Sub-Saharan Africa
2.5. Africa as an Extreme Research Setting
CHAPTER 3: LITERATURE REVIEW
3.1. Introduction
3.2. The Strategic International Public-Private Partnership (SIPPP)
3.3. Methodology Employed in the Review
3.4. Theoretical Framework
3.5. Trust
3.5.1. The concept of trust
3.5.2. Operationalising trust in a SIPPP
3.6. Interdependency
3.6.1. Economic interdependency
3.6.2. Collaborative interdependency
3.7. Different Cultural Value Systems
3.7.1. National cultural distance
3.7.2. National vs organisational cultural distance
3.7.3. Conceptualising cultural distance
3.8. Differences Between Private-Sector and Public-Sector Partner Groups
3.9. Conclusions from the Literature Review
CHAPTER 4: RESEARCH DESIGN AND METHOD
4.1. Research Aims
4.2. Research Setting
4.3. Research Design
4.4. Survey Design
4.5. Unit of Analysis
4.6. Sampling Strategy.
4.6.1. Sampling frame
4.6.2. Sample size
4.6.3. Selection of respondents
4.7. Measurement Scales
4.7.1. Principles of operationalisation of constructs and scale development
4.7.2. Developing the measuring instruments
4.7.2.1. Economic interdependency
4.7.2.2. Collaborative Interdependency
4.7.2.3. Trust
4.7.2.4. Cultural distance
4.7.2.5. Control variables
4.8. Survey Design
4.9. Construct Validation
4.9.1. Internal consistency reliability
4.9.2. Substantive and content validity
4.10. Pilot Study
4.10.1. Pilot testing of survey questionnaire
4.11. Main Study
4.11.1. Analytical procedure
4.11.2. CFA and SEM methodology
4.11.3. Goodness-of-fit
4.11.4. Residuals
4.11.5. Modification indices
4.11.6. Testing for convergent and discriminant validity
4.11.7. Nomological validity
4.11.8. Data screening
4.11.9. The treatment of Likert scales
4.11.10. Testing for mediation and moderation
4.11.11. Testing for between-groups differences
4.11.12. Limiting common method bias
4.11.13. Calculation of effect size
4.11.14. Calculation of statistical power
4.12. Ethical Considerations
CHAPTER 5: RESULTS
5.1. Introduction
5.2. First Pilot Study
5.3. Second Pilot Study
5.4. Data Collection and Sample Demographics
5.5. Data Screening
5.5.1. Missing Data
5.5.2. Unengaged responses
5.5.3. Outliers
5.5.4. Normality
5.5.5. Multicollinearity
5.6. Individual Scales Confirmatory Factor Analysis (CFA)
5.6.1. Economic Interdependency (Ec_Int)
5.6.2. Collaborative Interdependency (Coll_Int)
5.6.3. Trust (Tr)
5.6.4. National Cultural Distance (NCD)
5.6.5. Organisational Cultural Distance (OCD)
5.7. Full Measurement Model Confirmatory Factor Analysis (CFA)
5.7.1. Initial Measurement Model
5.7.2. Re-specified Measurement Model
5.7.3. Model Fit
5.7.4. Residuals
5.7.5. Construct Validity
5.7.5.1. Convergent Validity
5.7.5.2. Discriminant Validity
5.7.5.3. Nomological Validity
5.7.6. Common Method Bias
5.8. Structural Model
5.8.1. Data Screening and Processing
5.8.2. Base Structural Model
5.9. Model Results and Testing of Hypotheses
5.9.1. Base Model
5.9.2. Mediation Effects
5.9.3. Moderating Effects
5.9.4. Between-Groups Comparisons
5.10. Summary of Findings
5.11. Revised Conceptual Model
CHAPTER 6: DISCUSSION
6.1. Introduction
6.2. Measurement Scales
6.3. Discussion of Relationships
6.3.1. Economic interdependency and trust
6.3.2. Economic interdependency and collaborative interdependency
6.3.3. Collaborative interdependency and trust and its role as mediator
6.3.4. Effect of national cultural distance
6.3.5. Effect of organisational cultural distance
6.3.6. Between-groups comparisons: private-sector partner vs public-sector partner perceptions
CHAPTER 7: CONCLUSION
7.1. Introduction
7.2. Summary of Findings
7.3. Importance and Benefits of Study
7.3.1. Theoretical contribution
7.3.2. Methodological contribution
7.3.3. Practical management contribution
7.4. Limitations of the Study
7.5. Recommendations for Future Research
7.6. Conclusion