Chinese and Indian Trade and Investment Links with Sub-Saharan Africa: Institutions, Capabilities and Competitive Advantage

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Nir B. Kshetri, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:

Abstract: Because of cultural, historical and geopolitical differences, Chinese and Indian businesses have exhibited noteworthy differences in their operations in the economies in the Sub-Saharan Africa SSA. Drawing on theories related to institutions and dynamic capabilities, we analyze the China-India differences in trades and investments in the Sub-Saharan Africa. Institutional theory helps us understand legitimacy-seeking activities of various actors. The dynamic capabilities perspectives would help understand Chinese and Indian firms’ creation and exploitation of competitive advantages. Our findings suggest that behaviors of Chinese and Indian firms in Africa are driven by different contexts, processes and mechanisms. These differences are reflected in the two countries’ trades and investments in terms of, inter alia, the choice of strategic direction and goal, motivations, size of investments, and focus on countries based on cultural, political and economic factors. The implications for management and public policy are discussed and directions for future research are proposed.

Additional Information

Language: English
Date: 2013
China, India, Africa, institutional fit, coercive isomorphism, normative isomorphism, mimetic isomorphism, south-south trade, dynamic capabilities

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