Explaining Intra‐Africa Internationalization

• Date: 01 January 2019
• Published date: 01 January 2019
• Author: George Acheampong
• DOI: http://doi.org/10.1002/tie.21973

BOOK REVIEW

Explaining Intra-Africa Internationalization

There is a paucity of literature on intra-African trade on the continent despite clear indications that the phenomenon is on the increase

on the African continent. This review focuses on some of the key issues and outcomes that have been raised in this recent book. The book pro-

vides an eclectic bag of theories to explain the phenomenon, but these theories can have a better explanatory power if situated within an Afri-

capitalism context. Also, strategic, political, and digital considerations in internationalization on the African continent are espoused in Part 2of

the book. The final part of the book presents cases from different sectors in multiple countries to buttress the point that intra-African trade and

the emergence of African multinationals is on the rise. The editors have mapped out the nature of intra-African internationalization but clearly

note that the attempt is not exhaustive. Consequently, it represents a starting point for scholars to interrogate the issues that have been

espoused in this book.

The internationalization literature is inundated with literature on for-

eign direct investment (FDI) into Africa from the global north and

how firms from the global south (Africa especially) can also partici-

pate in the value chains of multinational companies in the global

north. In response to the above, macro-level managers of African

economies have been encouraging inward FDI investments into their

various countries while micro managers have been encouraged to

export into western countries. However, the evidence is beginning to

show that there is strong intra-African trade at the micro level that is

driving growth on the African continent. Several cases in Africa sup-

port this assertion (Adeleye, White, Ibeh, & Kinoti, 2015). However,

there is a paucity of literature covering this emerging phenomenon.

This book ably deals with this lacuna in literature and is a sequel to

an earlier edition focusing on “the changing dynamics of international

business in Africa.”It provides readers with the key issues and emerg-

ing trends, while providing insights into future research avenues.

The editors divide the book into three parts. Part 1 deals with

the key issues, emerging trends, and future dynamics, as well as pre-

senting directions for future studies. Adeleye, White, and Boso deal

with critical issues while discussing emerging trends and key issues in

intra-Africa internationalization. The first chapter presents a rich dis-

cussion of Africa in the global business arena and questions some of

the notions held about Africa in the international business literature.

For example, they point out that while Africa's contribution to global

trade is nearly negligible, intra-African trade is on the rise and saw an

almost 10% increase between 2005 and 2014. This growth can be a

preparatory phase for African enterprises to participate in future

global markets beyond the continent. The trends show that this

growth was spurred by transnational firms from Kenya, Nigeria, and

South Africa. Also, they note that efforts at overcoming infrastruc-

tural and institutional bottlenecks that have hindered the participa-

tion in international markets seem to be paying off with the

emergence of African multinationals. The findings suggest that one of

the key drivers of this internationalization effort has been networking

and interorganizational cooperation among firms, especially among

service firms. An overview of the thematic areas (rise of pan-African

banks, corporate political activity, internationalizing in a digital era,

internationalizing in a VUCA [volatility, uncertainty, complexity, and

ambiguity] region and building African businesses and brands) cov-

ered in the volume are briefly discussed in this chapter.

The second chapter in this part of the volume, by Adeleye and

Boso, raises questions about the ability of African multinationals to

dominate a market previously held by European multinationals and

recently emerging market players and the implications of such for

international business research scholars. The authors correctly esti-

mate based on current evidence that the factors driving intra-African

internationalization and the emergence of African multinationals is

likely to continue. This is largely because the Africa region remains

one of the largely untapped market opportunities globally for many

products and services. It is rightfully noted that the research on intra-

African internationalization at the firm and strategic management

level is nearly negligible. Theories on the motivations, locational

dynamics, regionalization, internationalization processes, challenges,

effects of internationalization on performance, and institutional

dynamics will be very welcome. Currently, the authors suggest an

eclectic bag of theories that can explain the behaviors of the emerg-

ing African multinationals that encompass these theories. However,

putting these theories within the context of Africapitalism

(Amaeshi & Idemudia, 2015) will provide these theories with the

needed African impetus. Africapitalism represents an economic phi-

losophy that is a middle ground between business and opportunity

suited to African conditions. This is because reliance on Western phil-

osophical concepts will offer little in understanding trade among Afri-

cans, with Riggsian prismatism as the result.

Part 2 of the book considers a multiplicity of issues that confront

intra-African internationalization efforts of African businesses in an

eclectic manner. Nigerian banks have been expanding into much of

Africa, especially in the West African subregion. Ebimo Amingo's

chapter examines the factors that influence this behavior of Nigerian

banks. The chapter provides insights into the usefulness of regulatory

Adeleye, I., White, L., & Boso, N. (Eds.). (2016). Africa-to-Africa internationaliza-

tion: Key issues and outcomes. London, England: Palgrave Macmillan. 275 Pages.

Hardcover. ISBN 978-3-319-30691-9

DOI: 10.1002/tie.21973

Thunderbird Int. Bus. Rev. 2019;61:89–90. wileyonlinelibrary.com/journal/tie © 2018 Wiley Periodicals, Inc. 89