n AfricaGrowth Agenda - Is 'good' governance good for business? A cross-national analysis of firms in African countries

Volume 2012, Issue 7
  • ISSN : 1811-5187


Some firms are more profitable than others are and many possible explanations have been put forward to explain these differences. Industry (e.g. concentration), corporate (e.g. scope economies) and firm (e.g. resources and capabilities) specific factors have all been identified as possible drivers of these differences. The industry and firm perspectives have enhanced our understanding of the drivers of firm strategies and performance. However, these perspectives have treated the national context as something that is external to firm strategies and performance. While institutional factors may be assumed to be constant in developed economies, they may not be in countries that undergo economic and political changes.

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