Title: Chinese and Indian trade and investment links with Sub-Saharan Africa: institutions, capabilities and competitive advantage

Authors: Nir Kshetri

Addresses: Bryan School of Business and Economics, The University of North Carolina at Greensboro, Greensboro, NC 27402-6165, USA

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 analyse 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 behaviours 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.

Keywords: China; India; institutional fit; coercive isomorphism; normative isomorphism; mimetic isomorphism; South-South trade; dynamic capabilities; trade links; investment links; Sub-Saharan Africa; institutional theory; competitive advantage; political factors; cultural factors; economic factors; culture; politics; economics.

DOI: 10.1504/IJTLID.2013.051702

International Journal of Technological Learning, Innovation and Development, 2013 Vol.6 No.1/2, pp.161 - 189

Available online: 26 Jan 2013 *

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