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Role of reciprocity and innovativeness on performance in a developing context: empirical evidence from Africa
Department of Tourism, National College of Tourism, Dar es Salaam; Department of Tourism and Hospitality, The Open University of Tanzania, Dar es Salaam, Tanzania.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-9707-7068
Department of Entrepreneurship, Strategy and Innovation, Lancaster University Management School (LUMS), Lancaster University; Department of Management and Organization, Stockholm School of Economics, Stockholm, Sweden.
2018 (English)In: African Journal of Science, Technology, Innovation and Development, ISSN 2042-1338, Vol. 10, no 1, p. 69-84Article in journal (Refereed) Published
Abstract [en]

Generally, investors tend to invest when likelihood of success is high. Many investors consider Africa as one market and neglect individual differences among African countries. Africa is mostly considered a high-risk market and conceptually innovativeness involves uncertainty, which precedes risk. However, it is known that when uncertainty is high there is a stronger correspondence between innovativeness and performance. As uncertainty is high in Africa, this paper claims that it is plausible to find correspondence between innovativeness and performance. This argument is developed since investors typically cope with uncertainty by networking on a reciprocal basis and preferring munificent markets. This link leads us to ask if innovativeness mediates the effect of relatively rich/poor environmental munificence and reciprocal exchange on performance in South Sudan (S. Sudan) and Tanzania. A tested model reveals that four components and an underlying 12 different observations are equivalent across both countries. Furthermore, a tested structural model confirms that the business logic of investors is quite different in S. Sudan and Tanzania. Innovativeness completely mediates effects of reciprocity and munificence on performance in Tanzania but not in S. Sudan. We found some support for the relationship between reciprocity and innovativeness but no support for munificence on innovativeness and performance.

Place, publisher, year, edition, pages
Taylor & Francis, 2018. Vol. 10, no 1, p. 69-84
Keyword [en]
Performance, Innovativeness, Reciprocity, Africa
National Category
Business Administration
Research subject
Accounting and Control
Identifiers
URN: urn:nbn:se:ltu:diva-64719DOI: 10.1080/20421338.2017.1385133OAI: oai:DiVA.org:ltu-64719DiVA, id: diva2:1118756
Note

Validerad;2018;Nivå 2;2018-02-09 (rokbeg)

Available from: 2017-07-02 Created: 2017-07-02 Last updated: 2018-02-09Bibliographically approved

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Publisher's full texthttps://doi.org/10.1080/20421338.2017.1385133

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CiteExportLink to record
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