Model for Local Economic Development
Role of outside actor
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-This research created a matrix to evaluate and compare social businesses. The main use of this matrix is a simple but clear graphical illustration of where different kinds of businesses strong points lie in case of value creation and what actors they use to create these values. If we compare different companies, irrelevant of the fact what the main objectives are of these companies, we can get an indication of the reasons why they perform well or poor on certain aspects of the value-creation process, and which stakeholders are involved in this.
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Huiskes, Creating a Social Business Matrix to evaluate and compare Social Businesses.
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-Chinese immigrants/ entrepreneurs bring new resources and capabilities, create jobs, stimulates business and development (through spillover effects). Overall positive influence, however ethnic tension can influence cooperation and well-being. The short term relationship is positive however impact of the long term presence of China is still to be questioned.
de Jong, The Influence of Chinese Firms and Immigrants on the Local Economic Development.
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-This research investigates the differences in local economic development in developing and developed countries by using a model by Pennink (2014), based on local economic development (LED) in developing countries and applies it to a developing country. The findings are that multinational enterprises and their activities do not seem to play a role in LED. Universities have a supporting role and the regional and local level overlap. The supranational power and the role of social capital are added to the model. The supranational power appears to a supportive role in LED, like other institutions on all levels. Social capital plays a critical role as entrepreneurs and their relations need to take initiative.
Kistemaker, Local economic development and its multi-level, multi-actor influences: The influence of a supranational power and social capital.
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-The following paper aims conducts a case study on how foreign firms are currently adapting to changes in Myanmar’s economy and successfully entering the country. A framework for analyzing business sectors in emerging countries was adopted as foundation for the research. The framework was expanded to include an analysis of the external social and economic impacts investment in a sector can generate. The study found that the demand for tourism is growing tremendously in the region due a variety of factors including countries improved foreign relations, easing access for tourists and improved investment climate. However, challenges and barriers to entry were found to be prevalent.
Koski, Business Sector Analysis in a Contemporary Economy. A Focus on the Tourism Sector in Myanmar.
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-Chinese entrepreneurs increasingly start businesses in Africa, even though it is one of the poorest continents in the world. This research aims to find out the reasons and the motivations for Chinese entrepreneurship start-ups in Africa. According to previous study, a model is developed. This model contains economic and social motivations. Through a qualitative research by conducting interviews with Chinese entrepreneurs in Dar es Salaam, we found out that both economic and social motivations intrigue Chinese entrepreneurs to start business in Africa.
Lin, The motivations for Chinese entrepreneurship start-up in Africa: Case study in Dar es Salaam.
-The goal of this qualitative research is to try to understand why there is such a large amount of Dutch FDI in Vietnam without an obvious foundation. In order to answer this, both theoretical as well as empirical research has been done by means of semi-structured interviews with seven Dutch multinational enterprises (MNEs), who are active investors in Vietnam. The large amount of Dutch FDI in Vietnam at present is the result of a combination of the firm size, international experience and the investment sector of a couple of large well known Dutch MNEs, who have invested heavily in Vietnam. The reason they decided to enter the Vietnamese market was the local market opportunities.
Pham, Dutch foreign direct investments in Vietnam: A qualitative study.
-This thesis proposes a framework through which an emerging market business sector can be analyzed. Such an analysis should lead to the opportunities and threats within that particular sector based on the institutional context, an industrial analysis and a company analysis. The framework includes the decision making process, in which through a rational decision making model the most probable entry mode decision will emerge. It has been applied to the Brazilian soy industry in a case study, to analyze whether the framework is complete and result in the required information. This showed that in this case the framework was successful in identifying the opportunities and threats of the soy industry in Brazil.
Quist, Building a framework for analyzing emerging market business sectors: A case study of the Brazilian soy industry.
-Investigation into the impact of channel captains increasing their influence on local suppliers. If CC set standards in labour regulations, delivery and quality of products they can actually hinder LED. A focus on short term versus long term cooperation, and lack of cooperation between all parties also restrict LED.
Schuffel, Channel captains and their impact on local economic development: Evidence from the textile industry in Tanzania.
-CSR is about conquering the future market, through investing in the Bottom of the Pyramid (BoP). The long term conquering of this market is argued to be helped by integrating the BoP market into the value chain. Important for this is collaboration between different types of leaders at both local and regional level and a link between the role of outside actor (NGO/MNC) and local leaders.
van Genderen, Integration of the Bottom of the Pyramid in the Business Models of Indonesian MNCs: New ways of thinking about Corporate Social Responsibility.
-This particular research has been done in Western companies with Western managers and Western employees, so I am not sure if it is fitted for the LED framework. However, one important thing to keep in mind is that there is a significant difference between employees’ knowledge sharing with host-country national managers and their knowledge sharing with expatriate managers due to differences in social capital. One could conclude that in LED projects, the manager of a MNC should not be an expatriate in order to share knowledge most effectively.
Van der Werff, The Impact of Managers on the Cultural Barrier between Headquarters and Subsidiaries: Measuring Knowledge Sharing by Social Capital, According to the Locals.
-The type of strategy and the governance mechanisms results in a different approach of the supply chain. The exact relationship between type of strategy and effect on LED and the comparison between strategy effects is difficult to establish. A producer-driven chain focuses on a long-term relationship within the chain versus the buyer-driven chain.
The ‘channel captain’ is difficult to establish, however it is shown they do not set their own requirements, but simply facilitate the requirements of others
Veltkamp, The Influence of a Multinational Corporation on the Local Economic Development.
-In this study, the opportunities and threats for Dutch retail companies in Vietnam are investigated.
It is found that the Vietnamese business system is a combination of a state organized and a fragmented business system. Furthermore, the most important opportunities for Dutch retailers are the favorable demand conditions. The lack of local, skilled staff, the lack of quality retail space in HCMC and Hanoi, and high rental costs are important threats to succeed in Vietnam. Finally, collaborative entry strategy (JV or acquisition) is recommended rather than an independent entry strategy (greenfield investment).
Van den Ban, How to analyze business sectors in emerging markets: A new framework applied to the retail sector in Vietnam.
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