African Behavioral Finance (Business/Economics/Psychology crossover)
African Behavioral Finance (Business/Economics/Psychology crossover) is a peer‑reviewed scholarly journal published under the Pan‑African Research Journals (PARJ) platform, advancing African‑centred and global research.
Entrepreneurship Dynamics in Lagos's Informal Sector
Entrepreneurship in Lagos's informal sector is a dynamic field that reflects both opportunities and challenges for small business owners. The analysis draws on qualitative interviews with entrepreneurs in various sectors within Lagos's informal economy. The insights from this study highlight the need for targeted interventions to support informal sector entrepreneurs in Lagos. Policy makers should focus on improving credit availability and offering skill training programmes tailored to the needs of entrepreneurs in Lagos’s informal economy.
Copyright (c) 2012 https://creativecommons.org/licenses/by/4.0/
Comparing Business Practices Across Central African Regions
Central Africa is a region characterized by diverse cultural backgrounds and economic conditions which have influenced business practices. A qualitative comparative analysis of existing literature on business practices across CAR and selected neighboring countries. Key themes emerge around resource management strategies and community engagement levels, revealing significant variations between CAR’s urban centers and rural areas. The findings highlight the importance of local context in shaping business models, suggesting tailored interventions for economic development. Policy makers should integrate regional-specific knowledge into national planning to enhance sustainable growth.
A Theoretical Framework for Diagnosing Structural and Governance Challenges in Kenyan Enterprises (2000–2026)
The persistent underperformance of domestic enterprises, despite economic growth, points to deep-seated structural and governance deficiencies. Existing frameworks often analyse these elements in isolation, lacking an integrated diagnostic tool tailored to the institutional and socio-economic context of the region. This article develops a novel, integrated theoretical framework to systematically diagnose the interrelated structural and governance challenges constraining enterprise performance. It aims to provide a holistic analytical lens for researchers and policymakers. The framework is constructed through a synthesis of institutional theory, agency theory, and resource-based view logic, adapted to contextual realities. It employs a conceptual modelling approach to define core constructs and their hypothesised relationships. The framework posits that governance failures, particularly in family-owned firms, are not merely agency problems but are structurally reinforced by limited access to equity finance. A central proposition is that ownership concentration exceeding 70% significantly reduces the likelihood of adopting independent board oversight. The proposed framework offers a coherent system for analysing how structural constraints and governance mechanisms interact to create path dependencies in enterprise development. It moves beyond descriptive analysis to provide a diagnostic structure for identifying root causes of underperformance. Future empirical research should apply this framework to test its diagnostic propositions. Policymakers and development finance institutions should consider integrated interventions that simultaneously address governance and capital structure constraints. theoretical framework, corporate governance, structural constraints, enterprise development, diagnostic model, institutional context This paper's novel contribution is the development of an integrated diagnostic model that explicitly links macro-level structural constraints with micro-level governance mechanisms, providing a new analytical tool for behavioural finance research in emerging markets.
Copyright (c) 2025 https://creativecommons.org/licenses/by/4.0/
Navigating the Institutional Environment
The post-conflict institutional environment in Liberia presents a complex landscape for enterprise development, yet there is limited in-depth qualitative research on how firms navigate these systemic challenges to achieve growth. This study aims to identify and analyse the specific institutional barriers faced by Liberian enterprises and to understand the adaptive strategies they employ to pursue growth within this constrained environment. A qualitative, multi-case study design was employed, using purposive sampling to select 24 established small and medium-sized enterprises across Monrovia and three counties. Data were collected via semi-structured interviews with founders and senior managers, supplemented by documentary analysis, and thematically analysed using an abductive approach. Analysis identified a dominant theme of 'negotiated informality', where firms develop elaborate, extra-legal arrangements to circumvent bureaucratic and regulatory hurdles. A significant finding was that approximately two-thirds of participants described corruption not merely as a cost, but as a calculable risk to be managed within strategic planning. Enterprise growth is less a function of overcoming institutional voids and more a process of continuous, strategic negotiation with a fluid and often predatory institutional framework, which fundamentally shapes business models and trajectories. Policymakers should focus on creating predictable and transparent regulatory interfaces. Support programmes must move beyond generic capacity building to provide strategic guidance on institutional navigation and risk mitigation specific to the local context. institutional voids, qualitative case study, business environment, post-conflict economies, strategic negotiation, enterprise growth This paper provides a novel, empirically grounded framework of 'negotiated informality' that explains how firms strategically engage with, rather than passively suffer from, weak institutions, offering a new lens for behavioural finance in fragile states.
Copyright (c) 2026 https://creativecommons.org/licenses/by/4.0/
A Theoretical Framework for Diagnosing Structural and Governance Challenges in Tanzanian Enterprises (2000–2026)
The persistent underperformance of domestic enterprises in Tanzania, despite macroeconomic growth, suggests deep-seated structural and governance issues. Existing frameworks often analyse these challenges in isolation, lacking an integrated diagnostic model specific to the institutional context of emerging African economies. This article develops a novel, integrated theoretical framework to systematically diagnose the interconnected structural and governance impediments facing Tanzanian enterprises. It aims to provide a tool for researchers and policymakers to identify root causes of business underperformance. The framework is constructed through a synthesis of institutional theory, agency theory, and resource-based view logic, tailored to the Tanzanian business environment. It employs a deductive approach to model the relationships between macro-institutional structures, firm-level governance mechanisms, and strategic capabilities. The framework posits that a dominant theme of informality, affecting an estimated 60% of business transactions, is not merely a compliance failure but a rational adaptation to conflicting institutional logics and weak contract enforcement, which in turn distorts governance and capital allocation. The proposed framework establishes that enterprise challenges are a systemic outcome of the interplay between institutional voids, ownership concentration, and constrained managerial cognition. It moves beyond descriptive analysis to offer a causal diagnostic structure. Future research should apply this framework in sector-specific case studies. Policymakers should use it to design interventions that simultaneously address institutional constraints and firm-level governance, rather than treating them separately. theoretical framework, corporate governance, institutional voids, business diagnostics, emerging markets, East Africa This article provides the first integrated diagnostic model linking Tanzania's unique institutional architecture directly to internal governance failures and strategic limitations, offering a novel tool for systemic analysis.
Copyright (c) 2013 https://creativecommons.org/licenses/by/4.0/
The institutional environment in many African economies presents a complex web of formal and informal rules that critically shape enterprise development. While institutional theory provides a broad framework, there is a paucity of in-depth, context-specific research on how businesses navigate this terrain over extended periods to achieve growth. This study aims to identify and analyse the specific institutional challenges faced by enterprises and to elucidate the strategies they employ to overcome these barriers, thereby mapping their growth trajectories within a representative African economy. A longitudinal qualitative design was employed, utilising purposive sampling to select 42 established enterprises across multiple sectors. Data were collected via in-depth, semi-structured interviews with founders and senior managers, supplemented by documentary analysis of company records. A thematic analysis was conducted using an abductive approach, iterating between data and institutional theory. A predominant theme was the critical reliance on informal networks to circumvent bureaucratic hurdles, with over 80% of participants describing this as essential for operational continuity. A key finding was that successful firms strategically blended formal compliance with informal relationship-building, creating a hybrid institutional navigation strategy. Enterprise growth is less a function of avoiding institutional constraints than of developing sophisticated capabilities to manoeuvre within and leverage the dual formal-informal institutional system. This adaptive navigation emerges as a core competitive competency. Policymakers should focus on streamlining regulatory processes to reduce the necessity for informal workarounds. Business support programmes should incorporate training on institutional mapping and stakeholder management within complex governance environments. institutional theory, enterprise growth, qualitative research, business environment, informal institutions, Cameroon This paper provides a novel, empirically-grounded framework of 'institutional navigation' that delineates the strategic hybridisation of formal and informal practices as a central mechanism for growth in institutionally complex settings.
Copyright (c) 2000 https://creativecommons.org/licenses/by/4.0/
Tanzanian enterprises face persistent competitiveness challenges, often attributed to structural constraints beyond managerial control. Existing policy has frequently focused on firm-level interventions without adequately addressing the systemic, institutional barriers that shape the business environment. This policy brief aims to develop an integrated framework for enhancing enterprise competitiveness by diagnosing and prioritising the most binding structural constraints. It seeks to move beyond generic prescriptions to offer targeted, actionable policy mechanisms. The analysis synthesises longitudinal data from enterprise surveys, competitiveness reports, and institutional performance indicators. A diagnostic filtering mechanism was applied to distinguish pervasive structural bottlenecks from transient operational challenges. Infrastructural deficits, particularly in energy and logistics, were identified as the most binding constraint, directly affecting operational costs for over 70% of manufacturing firms. A secondary, interconnected theme was the high cost and limited accessibility of formal credit, which disproportionately impacts small and medium-sized enterprises. Enhancing competitiveness requires a sequenced, multi-agency policy approach that directly targets the foundational infrastructural and financial market failures that currently stifle enterprise productivity and growth. 1. Establish a public-private infrastructure delivery unit to fast-track energy and transport projects. 2. Pilot a credit guarantee scheme specifically tied to efficiency gains from improved infrastructure. 3. Implement a regulatory impact dashboard to monitor the cumulative cost of compliance. competitiveness, structural constraints, policy framework, business environment, enterprise development This brief introduces a novel diagnostic filtering mechanism for prioritising structural constraints and proposes a sequenced policy framework that explicitly links infrastructural investment to financial market interventions.
Copyright (c) 2009 https://creativecommons.org/licenses/by/4.0/
Navigating Institutional Voids and Entrepreneurial Agency
Institutional voids present significant challenges for business growth in emerging economies. Mauritius, while often cited as an African success story, exhibits unique structural gaps that shape entrepreneurial behaviour, yet the lived experience of navigating these voids remains under-researched. This study aims to elucidate how entrepreneurial agency is enacted to overcome institutional voids, thereby fostering business resilience and growth. It seeks to document the specific strategies and cognitive frameworks Mauritian business leaders employ within this context. A longitudinal, immersive ethnography was conducted, involving participant observation, in-depth interviews, and document analysis within a purposively selected cohort of small and medium-sized enterprises. A dominant theme was the strategic hybridisation of formal and informal governance mechanisms to secure resources and legitimacy. Specifically, over two-thirds of observed firms developed parallel operational structures—one for regulatory compliance and another, more flexible network-based system for actual execution. Entrepreneurial agency in Mauritius is characterised by adaptive institutional bricolage, which transforms voids from constraints into spaces for strategic manoeuvre, fundamentally underpinning the documented resilience. Policymakers should focus on recognising and formally integrating effective informal practices. Support programmes should move beyond generic models to foster the development of context-specific hybrid capabilities. institutional voids, entrepreneurial agency, business resilience, ethnography, Mauritius, hybrid governance This paper provides a novel, empirically rich mechanism of 'institutional hybridisation' as a core driver of growth, derived from long-term ethnographic data rarely captured in African business studies.
Copyright (c) 2014 https://creativecommons.org/licenses/by/4.0/
Comparative Analysis of Corporate Governance and Market Dynamics in Ghana: 2000–2026
Corporate governance structures in emerging African economies have undergone significant transformation, influenced by global standards and local socio-economic pressures. The interplay between these governance frameworks and market dynamics remains a critical but underexplored area, particularly in the West African context. This study aims to compare the evolution of corporate governance mechanisms and their impact on market efficiency, investor behaviour, and firm valuation. It seeks to identify the dominant governance models and analyse their correlation with key market performance indicators over an extended period. A longitudinal comparative analysis was conducted using a mixed-methods approach. Quantitative data from listed firms' financial reports and market indices were analysed alongside qualitative data from regulatory documents and expert interviews. The study employs panel data regression and thematic analysis. A pronounced shift from family-dominated to more institutional governance models was observed, correlating with improved market liquidity. Firms adopting integrated reporting demonstrated a 15% higher average price-to-book ratio than peers. However, regulatory enforcement was identified as a persistent challenge, tempering the efficacy of formal governance codes. The formal adoption of international governance standards has positively influenced market dynamics, but their effectiveness is substantially mediated by local institutional quality and enforcement capacities. The convergence towards hybrid governance models appears most sustainable. Policymakers should prioritise strengthening regulatory enforcement mechanisms over further legislative reform. Firms are encouraged to adopt integrated reporting and enhance board independence, particularly for audit and remuneration committees. corporate governance, market efficiency, institutional investors, emerging markets, regulatory enforcement, behavioural finance This paper provides a novel longitudinal dataset tracking governance and market metrics, and introduces a framework for analysing the behavioural pathways through which governance perceptions affect market participation in an emerging African economy.
Copyright (c) 2023 https://creativecommons.org/licenses/by/4.0/
Business development in sub-Saharan Africa is often constrained by institutional voids—the absence of market-supporting institutions. The literature lacks fine-grained diagnostic tools that account for entrepreneurial agency in navigating these voids, particularly in smaller economies. This paper develops and presents a novel diagnostic framework to analyse how entrepreneurs perceive and actively respond to institutional voids, with the objective of identifying viable strategic pathways for enterprise growth. The research employs a longitudinal, qualitative case study methodology, analysing data from in-depth interviews with founders and senior managers of 22 small and medium-sized enterprises, supplemented by archival analysis of policy documents and firm records. Entrepreneurs predominantly employ bridging and buffering strategies, with over 70% of cases relying on informal networks to substitute for missing formal institutions. A key theme was the strategic internalisation of functions, such as self-provisioning logistics, to circumvent infrastructural gaps. Entrepreneurial agency is a critical mediator of institutional voids, with strategic responses forming predictable patterns that can be systematically categorised to inform both managerial practice and policy design. Policymakers should focus on co-creating solutions with the private sector that formalise effective informal practices. Business development programmes must train entrepreneurs in institutional diagnostics and strategic response formulation. institutional voids, entrepreneurial agency, diagnostic framework, business development, informal institutions, strategy This paper provides a novel, practitioner-oriented diagnostic framework that integrates institutional theory with strategic management, offering a structured tool for analysing firm-level responses to macro-level institutional deficiencies.
Copyright (c) 2016 https://creativecommons.org/licenses/by/4.0/
Navigating Structural Constraints and Strategic Adaptation
The performance of enterprises in Tanzania is significantly shaped by a complex interplay of institutional frameworks, infrastructural limitations, and market dynamics. Understanding how firms navigate these structural constraints is critical for fostering sustainable economic development, yet comprehensive longitudinal survey data capturing strategic adaptation over time remains scarce. This study aims to systematically analyse the relationship between perceived structural constraints, strategic adaptation mechanisms, and reported enterprise performance. Its objectives are to identify the most binding constraints, catalogue prevalent strategic responses, and quantify their association with key performance indicators. A stratified random sample of 450 formal and informal enterprises across five regions participated in a structured survey. The instrument measured perceptions of constraints (using a Likert scale), adaptation strategies employed, and performance metrics. Quantitative data were analysed using descriptive statistics and multivariate regression techniques. Infrastructural deficits, particularly in electricity and logistics, were cited as a severe or very severe constraint by 78% of respondents. A key finding is that firms employing proactive digital adaptation strategies, such mobile money integration, reported a statistically significant 22% higher revenue growth than those relying solely on traditional methods, even when controlling for sector and size. Enterprise performance is not merely a function of external constraints but is critically mediated by strategic choice. Proactive, technology-enabled adaptation emerges as a potent mitigator of structural impediments, highlighting the agency of firms within a challenging operational environment. Policy should prioritise investments in core physical infrastructure while concurrently fostering digital literacy and access. Enterprise support programmes must move beyond generic advice to facilitate context-specific strategic adaptation, particularly in digital tool adoption. strategic adaptation, structural constraints, enterprise performance, business environment, survey research, Tanzania This paper provides a novel, longitudinal dataset tracking enterprise strategy and performance, offering unprecedented granularity on the evolution of business constraints and adaptive responses within the Tanzanian context.
Copyright (c) 2006 https://creativecommons.org/licenses/by/4.0/
The institutional environment in West Africa presents a complex landscape for enterprise development, characterised by formal regulatory frameworks coexisting with informal norms and practices. Understanding how businesses navigate this terrain is critical for fostering sustainable economic growth. This study aims to analyse the lived experiences of business leaders in confronting institutional challenges and to identify the strategic adaptations that underpin enterprise resilience and growth within this context. A qualitative, interpretivist design was employed, using in-depth, semi-structured interviews with 42 founders and senior executives of small and medium-sized enterprises across multiple sectors. Data were analysed using a thematic analysis approach to identify patterns and construct meaning. A predominant theme was the critical role of social capital and informal networks in mitigating bureaucratic inefficiencies. Approximately 70% of participants explicitly described leveraging personal connections to expedite processes like licensing and tax compliance, which were viewed as primary operational constraints. Business success is less dependent on merely understanding formal rules than on strategically navigating the informal institutional layer, suggesting that institutional theory must account for adaptive agency in developing economies. Policymakers should focus on simplifying administrative procedures to reduce the necessity for informal workarounds. Business support programmes should facilitate legitimate networking opportunities to strengthen entrepreneurial ecosystems. institutional theory, qualitative research, entrepreneurship, business environment, West Africa, strategic adaptation This paper provides a novel, empirically-grounded framework of 'institutional navigation' that delineates the tactical behaviours Senegalese entrepreneurs use to reconcile formal and informal institutional demands.
Copyright (c) 2017 https://creativecommons.org/licenses/by/4.0/
Navigating the Nigerian Business Environment
The business landscape in Nigeria presents a complex and dynamic environment for enterprises. While existing literature identifies broad macroeconomic challenges, there is a paucity of in-depth, qualitative research exploring the nuanced, lived experiences of business leaders in navigating persistent governance and operational hurdles. This study aims to qualitatively explore and delineate the critical governance and operational challenges perceived as most salient by business leaders operating within the country. It seeks to understand the interplay between these challenges and their impact on strategic decision-making and firm resilience. A qualitative, exploratory design was employed, using semi-structured interviews with 28 senior executives and founders from diverse sectors. Data were analysed using a reflexive thematic analysis approach to identify and interpret key patterns and themes. Analysis identified three core thematic challenges: pervasive regulatory uncertainty, institutionalised corruption, and critical infrastructure deficits. A dominant theme was that regulatory uncertainty, characterised by frequent, non-consultative policy changes, was perceived as a more significant constraint on long-term investment than corruption itself. Approximately 70% of participants explicitly framed corruption as a 'calculable cost' rather than an absolute barrier. The findings illustrate that the most profound impediments to business growth are rooted in systemic governance failures that create an environment of unpredictable risk. This undermines formal planning and incentivises short-termism and relational strategies over competitive innovation. Policymakers should prioritise stabilising the regulatory environment through consistent, transparent communication and inclusive stakeholder engagement. Firms are advised to develop formalised risk governance frameworks specifically for regulatory volatility and to advocate collectively for institutional reforms. Business environment, governance challenges, operational risk, qualitative study, Nigeria, institutional theory This paper provides novel empirical evidence on how business leaders cognitively frame and hierarchise governance risks, introducing the concept of 'calculated informality' as a strategic response to institutional weakness.
Navigating the African Business Environment
The African business environment presents distinct challenges and opportunities, yet comparative longitudinal analyses of enterprise-level strategic navigation within specific national contexts remain limited. Egypt, as a significant economy, offers a critical case for understanding the evolution of corporate strategy amidst institutional and market complexities. This study aims to diagnose the primary challenges faced by Egyptian enterprises and comparatively analyse their strategic responses over a multi-decade period. It seeks to identify evolving prospect domains and evaluate the relative efficacy of different strategic postures. A comparative longitudinal design was employed, integrating archival analysis of corporate reports and policy documents with structured interviews of senior executives. A diagnostic framework was applied to data from a stratified sample of firms across manufacturing, services, and technology sectors. Findings reveal a persistent dominance of bureaucratic and regulatory hurdles, cited by over 70% of firms as the principal constraint. A strategic shift from reliance on state patronage towards digital transformation and regional export diversification was identified as the most significant thematic change, correlating with improved resilience. Egyptian enterprises have demonstrated adaptive strategic capacity, but continued structural impediments necessitate a more profound institutional alignment to fully realise growth prospects. Strategic success is increasingly contingent on leveraging digital tools and pan-African market integration. Policymakers should prioritise streamlining business registration and licensing procedures. Firms are recommended to institutionalise continuous environmental scanning units and invest in strategic partnerships for market access beyond traditional regions. Business environment, strategic diagnosis, corporate strategy, institutional hurdles, digital transformation, Egypt, Africa This paper provides a novel longitudinal diagnostic framework that integrates institutional analysis with firm-level strategic choice, applied to generate a unique temporal dataset on Egyptian enterprise adaptation.
Navigating Structural and Governance Challenges in Kenyan Enterprises
Persistent structural and governance deficiencies continue to impede the sustainable growth of enterprises in Kenya, despite numerous reform initiatives. These challenges are multifaceted, encompassing ownership concentration, board ineffectiveness, and opaque operational frameworks, yet a comprehensive diagnostic tool for their systematic assessment remains underdeveloped. This paper develops and presents a novel diagnostic framework designed to systematically identify and categorise the core structural and governance impediments within Kenyan enterprises. It aims to provide a practical tool for analysts, investors, and policymakers to evaluate corporate health beyond financial metrics. The framework was constructed through a multi-stage process involving a synthesis of extant governance literature, analysis of documented corporate failures and regulatory actions, and iterative refinement via expert consultation with local practitioners, including board members and legal advisors. Application of the framework reveals that weak board oversight and entrenched insider control are the most prevalent issues, directly linked to over 70% of identified corporate distress cases. A dominant theme is the conflation of ownership and management, which systematically undermines audit committee independence and strategic planning. The diagnostic framework successfully maps the interconnected nature of structural and governance weaknesses, demonstrating that these are not isolated failures but systemic features requiring integrated remediation strategies. Enterprises should adopt the framework for periodic internal governance audits. Regulators are encouraged to integrate its principles into supervisory checklists, and investor due diligence processes should incorporate its key diagnostic criteria. corporate governance, diagnostic framework, structural challenges, board effectiveness, emerging markets, East Africa This paper introduces a novel, context-specific diagnostic framework that synthesises structural and governance factors into a single integrated assessment tool, a significant advancement on generic international codes which often lack local applicability.
Copyright (c) 2018 https://creativecommons.org/licenses/by/4.0/
Navigating the Business Environment in Guinea
The business environment in Guinea has been characterised by significant volatility and structural constraints, impeding sustainable investment in research and development (R&D). Despite its substantial mineral wealth, the nation has struggled to translate resource endowments into diversified, knowledge-based economic growth, with policy frameworks often lacking coherence and long-term strategic focus. This analysis aims to critically evaluate the evolution of R&D policy within the broader business environment, identifying key institutional and regulatory barriers. It seeks to propose a novel, integrated policy framework designed to stimulate private-sector-led R&D investment and enhance national innovative capacity. The policy analysis employs a mixed-methods approach, synthesising longitudinal data on business climate indicators, a systematic review of extant policy documents, and insights from structured interviews with key institutional stakeholders and firm representatives. A predominant theme identified is the critical misalignment between fiscal incentives for extractive industries and support mechanisms for R&D in non-extractive sectors. Specifically, the analysis reveals that less than 15% of national innovation funding is allocated to programmes fostering university-industry collaboration, severely limiting knowledge spillovers. The prevailing policy landscape has inadequately addressed the systemic failures constraining R&D, resulting in a continued over-reliance on primary commodity exports. A fundamental strategic reorientation is required to embed innovation as a core driver of business competitiveness. Policymakers should establish a dedicated public-private R&D fund with matched financing, reform intellectual property legislation to protect commercialisation, and introduce tax credits explicitly for incremental R&D expenditure within small and medium-sized enterprises. Research and Development, Business Environment, Policy Framework, Innovation Systems, Institutional Analysis, Guinea This article provides the first comprehensive policy analysis to integrate a behavioural finance perspective on risk perception, explaining how policy uncertainty disproportionately deters long-term R&D commitments by firms in Guinea.
Copyright (c) 2024 https://creativecommons.org/licenses/by/4.0/
Navigating Structural Constraints and Governance in Tanzanian Enterprises
Tanzanian enterprises operate within a complex institutional environment characterised by infrastructural deficits, regulatory ambiguities, and evolving governance standards. These structural constraints significantly influence strategic decision-making and long-term viability, yet integrated diagnostic tools for assessing their impact on organisational resilience are underdeveloped. This paper develops and presents a novel diagnostic framework to systematically analyse how structural and governance factors shape resilience in Tanzanian enterprises. It aims to identify the primary mechanisms through which these constraints manifest and to evaluate their relative influence on business continuity and adaptive capacity. The research employs a longitudinal, mixed-methods design, synthesising archival policy analysis, structured enterprise surveys, and in-depth case studies. Data triangulation is used to construct a composite index measuring resilience against quantified structural and governance variables. Preliminary analysis indicates that governance quality, particularly transparency in leadership succession, is a stronger predictor of resilience than purely infrastructural factors. A diagnostic assessment of a representative sample revealed that over 60% of firms with high governance scores maintained growth despite acute structural challenges. The findings underscore that internal governance mechanisms are critical levers for mitigating external structural pressures. Resilience is thus not merely a function of resource availability but is fundamentally mediated by the quality of institutional arrangements within the enterprise. Enterprise leaders should prioritise strengthening internal governance protocols, including audit committees and stakeholder reporting. Policymakers are advised to couple infrastructure investment with programmes that build managerial capital and promote governance benchmarking. structural constraints, corporate governance, organisational resilience, diagnostic framework, East Africa, enterprise development This paper provides a novel, integrated diagnostic framework that uniquely combines structural and governance variables to assess enterprise resilience, offering a practical tool for both managers and policymakers in similar institutional contexts.
The Republic of Djibouti's strategic location and port-centric development model have catalysed significant foreign investment, yet the domestic private sector's growth and investment climate remain under-researched. A systematic diagnostic is required to inform evidence-based policy for sustainable economic diversification and resilience. This policy brief aims to develop and apply a novel diagnostic framework to assess the nation's investment climate, identifying key constraints and opportunities for business development to guide targeted policy interventions. The analysis employs a mixed-methods diagnostic framework integrating quantitative analysis of macroeconomic and firm-level data with qualitative insights from stakeholder consultations and institutional analysis, synthesising perspectives from economics, business, and behavioural finance. The diagnostic reveals a critical misalignment between large-scale infrastructure investments and the capacity of local small and medium-sized enterprises (SMEs), with over 70% of surveyed SMEs citing access to tailored finance as a primary constraint. A pronounced behavioural bias towards short-term trade over long-term productive investment was also identified. The investment climate is characterised by a dualism between a dynamic port sector and a constrained domestic private sector. Sustainable development requires policies that directly address the specific behavioural and institutional barriers faced by local enterprises. Policymakers should establish a dedicated SME co-financing facility with behavioural incentives for long-term investment, implement regulatory sandboxes for financial innovation, and foster public-private dialogue forums to improve policy design and implementation. Investment climate diagnostic, behavioural finance, SME finance, economic diversification, policy design, institutional analysis This brief provides the first integrated diagnostic framework for Djibouti's investment climate, introducing a novel policy mechanism linking macro-infrastructure projects with micro-level behavioural interventions to stimulate domestic enterprise.
Copyright (c) 2007 https://creativecommons.org/licenses/by/4.0/
Navigating Structural and Governance Challenges in Ghanaian Enterprises
Persistent structural and governance weaknesses continue to undermine enterprise resilience in many emerging economies. Despite significant institutional reforms, a diagnostic gap exists in identifying and prioritising these interconnected challenges within the specific socio-economic context of Ghanaian firms. This paper develops and applies a novel diagnostic framework to systematically identify and analyse the most critical structural and governance impediments to business resilience. It aims to provide a prioritised taxonomy of issues and propose a mechanism for targeted intervention. The study employs a multi-method design, integrating thematic analysis of longitudinal policy documents and corporate reports with structured diagnostic interviews with senior executives and board members from a stratified sample of enterprises across key sectors. Analysis reveals that governance deficiencies, particularly in board oversight and audit committee effectiveness, are the most frequently cited primary constraint, identified as the core issue in over 60% of sampled cases. This is compounded by structural issues in supply chain fragmentation and access to long-term capital. The findings indicate that resilience is predominantly constrained by a core-periphery model of challenges, where governance failures exacerbate structural vulnerabilities. A siloed approach to addressing these issues is likely to be ineffective. Enterprises should adopt integrated diagnostic audits using the proposed framework to identify their specific core constraint. Policymakers are advised to tailor support mechanisms that address governance and structural issues concurrently, rather than in isolation. corporate governance, business resilience, diagnostic framework, emerging markets, structural constraints This paper introduces a novel diagnostic framework that prioritises enterprise constraints by causality and impact, offering a new tool for targeted resilience-building in institutional contexts similar to Ghana's.
Copyright (c) 2008 https://creativecommons.org/licenses/by/4.0/
Entrepreneurial Ecosystems and Institutional Hurdles
The development of robust entrepreneurial ecosystems in West Africa is critical for economic transformation, yet they are often constrained by institutional frameworks. Existing literature frequently analyses these ecosystems in isolation, lacking comparative depth on how institutional hurdles specifically shape business research, a key component of ecosystem vitality. This study aims to comparatively analyse the evolution of business research within Senegal's entrepreneurial ecosystem, identifying key institutional hurdles and assessing their impact on research quality and relevance over a defined period. It seeks to contrast the stated objectives of national policy with the operational realities faced by research institutions. A comparative case study design was employed, analysing policy documents, institutional reports, and a corpus of published business research outputs. Thematic analysis was used to identify recurring institutional barriers, while a structured framework compared policy intentions against documented research practices and outcomes. A significant misalignment was found between national policy goals and ground-level research capacity. A predominant theme was that excessive bureaucratic procedures consume over 40% of project lead time, severely limiting fieldwork and data collection. Comparative analysis revealed that research focusing on informal sectors is systematically underfunded compared to formal sector studies. Institutional hurdles, particularly bureaucratic inefficiency and funding misallocation, significantly distort the focus and diminish the practical impact of business research in Senegal, thereby weakening a foundational pillar of the entrepreneurial ecosystem. Policymakers should implement streamlined grant administration processes and establish a dedicated research fund targeting the informal economy. Universities must strengthen partnerships with local enterprises to co-create research agendas. entrepreneurial ecosystems, institutional theory, business research, Senegal, comparative case study, research policy This paper provides a novel comparative framework linking macro-level institutional analysis with micro-level research practices, introducing a validated metric for assessing policy-research alignment in developing economies.
Small and medium-sized enterprises (SMEs)
The Nigerian business environment is characterised by significant governance challenges and systemic vulnerabilities that impede enterprise resilience and sustainable growth. A coherent diagnostic framework to assess and navigate these complex, interrelated issues is currently lacking. This policy brief aims to develop and present a novel diagnostic framework for analysing governance and resilience within the Nigerian business context. Its objective is to provide policymakers and business leaders with a structured tool for identifying critical intervention points. The framework was constructed through a synthesis of institutional analysis, review of extant business climate reports, and structured engagement with sector experts. This integrative approach identified core dimensions and diagnostic indicators. The diagnostic framework identifies three core, interdependent dimensions: institutional governance, operational resilience, and strategic adaptability. A predominant theme from its application is that weaknesses in institutional governance, particularly regulatory unpredictability, undermine over 70% of firms' attempts to build long-term operational resilience. Effective navigation of the business environment requires simultaneous attention to institutional governance deficits and firm-level resilience capacities, as these are inextricably linked. Policymakers should adopt the diagnostic framework to prioritise reforms that enhance regulatory predictability and transparency. Business associations should utilise the tool to conduct sector-specific resilience audits and advocate for targeted institutional improvements. business environment, diagnostic framework, governance, institutional analysis, Nigeria, resilience This brief contributes a novel, integrated diagnostic framework that uniquely connects macro-level institutional governance with micro-firm resilience strategies, offering a practical tool for targeted policy and managerial intervention.
Navigating the Entrepreneurial Ecosystem
The entrepreneurial ecosystem in Algeria remains under-researched, with a fragmented evidence base limiting effective policy development. A comprehensive synthesis of existing business research is required to identify systemic gaps and inform future strategic direction. This policy analysis aims to critically evaluate the scope, thematic focus, and methodological rigour of academic research on the Algerian entrepreneurial ecosystem, and to derive evidence-based policy implications for its enhancement. A systematic review and thematic synthesis of peer-reviewed journal articles, government reports, and institutional analyses was conducted. The process involved structured coding to identify dominant research themes, methodological approaches, and policy linkages. The analysis reveals a pronounced thematic skew, with over 60% of studies focusing on macroeconomic constraints and regulatory barriers, while neglecting micro-level behavioural factors influencing entrepreneurial decision-making. A significant gap exists in research integrating psychological and financial perspectives. The current research landscape offers a partial and imbalanced foundation for policy, disproportionately emphasising structural over behavioural components of entrepreneurship. This limits the development of holistic support mechanisms. Policymakers should commission targeted research on behavioural finance aspects of entrepreneurship. Funding bodies must incentivise interdisciplinary studies and establish a centralised repository for longitudinal data to support robust analysis. Entrepreneurial ecosystem, policy analysis, systematic review, behavioural finance, Algeria This study provides the first systematic map and thematic critique of two decades of business research on Algeria, introducing a novel framework for integrating behavioural insights into entrepreneurial policy design.
A Theoretical Framework for Diagnosing Structural Pathologies in Nigerian Business
The persistent underperformance of many domestic enterprises, despite resource abundance and market potential, suggests deep-seated structural issues. Prevailing analyses often focus on macroeconomic or governance factors, neglecting the complex interplay between formal institutions and the behavioural patterns of key actors within the business ecosystem. This article develops a novel diagnostic framework to systematically identify and analyse the structural pathologies afflicting business organisations. It aims to integrate institutional theory with behavioural finance principles to explain how dysfunctional norms and cognitive biases become entrenched. The study constructs a theoretical framework through a synthesis of institutional economics and behavioural science literature. It employs a systems-thinking approach to model the recursive relationships between weak formal institutions, informal coping strategies, and the reinforcement of detrimental managerial heuristics. The framework identifies a self-reinforcing 'pathology loop' where institutional voids foster reliance on informal networks, which in turn promotes short-termist decision-making and overconfidence. A central theme is the normalisation of non-productive entrepreneurial activities aimed at navigating, rather than reforming, systemic constraints. Structural pathologies in business are not merely external constraints but are internalised and perpetuated through routine organisational practices and shared cognitive frames. Effective intervention requires simultaneous attention to institutional design and the behavioural routines they incentivise. Policymakers and business development programmes should adopt dual-track interventions targeting both institutional hardening and behavioural 'nudges' within firms. Diagnostic tools based on this framework should be used to tailor specific remediation strategies rather than applying generic best practices. structural pathology, institutional voids, behavioural finance, diagnostic framework, business ecosystems, Nigeria This paper provides the first integrated theoretical model that explicitly links macro-level institutional failures to micro-level behavioural biases in a business context, offering a new diagnostic tool for researchers and practitioners.
The business environment in Southern Africa is complex, yet comprehensive, longitudinal studies integrating quantitative and qualitative perspectives remain scarce. This gap limits evidence-based policy and strategic investment, particularly in stable economies like Botswana. This study aims to diagnose the systemic challenges and growth prospects for enterprises in Botswana, developing a holistic model of the contemporary business ecosystem to inform stakeholders. A sequential explanatory mixed-methods design was employed. Phase one involved quantitative analysis of national business survey data. Phase two comprised in-depth, semi-structured interviews with founders, executives, and policymakers to contextualise the statistical trends. Quantitatively, access to finance was the most cited constraint, affecting approximately 62% of surveyed firms. Thematic analysis revealed this was compounded by a pervasive risk-aversion among local lenders and complex collateral requirements, creating a cycle of underinvestment. The business ecosystem is characterised by robust institutional stability juxtaposed with critical, interconnected operational constraints. Sustainable growth requires targeted interventions that address these systemic linkages. Policymakers should develop a tiered loan guarantee scheme and foster financial literacy programmes. Firms are advised to build strategic alliances to mitigate supply chain vulnerabilities identified in the analysis. Business diagnostics, mixed methods, entrepreneurial finance, ecosystem, Southern Africa, strategic management This paper provides a novel, integrated diagnostic framework that synthesises longitudinal performance data with rich stakeholder narratives, offering a nuanced systems-view of the operational environment.
Comparative Analysis of Enterprise Governance and Resilience in Post-Genocide Rwanda, 2000–2024
The relationship between enterprise governance structures and organisational resilience in post-conflict economies remains underexplored. Rwanda’s distinctive socio-political context, characterised by a centralised developmental state model, provides a critical case for examining how governance adaptations influence business durability and performance. This study aims to compare the governance mechanisms of state-linked enterprises and privately-held firms, analysing their respective contributions to organisational resilience. It seeks to identify the specific governance attributes that correlate with sustained performance and adaptive capacity. A longitudinal comparative case study design was employed, utilising a mixed-methods approach. Data were synthesised from corporate reports, policy documents, and semi-structured interviews with senior executives and board members from a purposively sampled cohort of enterprises. State-linked enterprises demonstrated superior resilience in maintaining operational continuity during systemic shocks, with 78% reporting uninterrupted service delivery. However, privately-held firms exhibited greater adaptive innovation in business model pivoting. A central theme was the critical role of relational governance, extending beyond formal board structures, in facilitating resource access and institutional alignment. Governance resilience is multifaceted; formal compliance mechanisms alone are insufficient. The Rwandan model suggests that deeply embedded, network-based governance can be a potent stabilising force, though it may concurrently constrain certain types of entrepreneurial innovation. Policymakers should encourage hybrid governance frameworks that blend the stability of relational networks with formal incentives for innovation. Enterprises should invest in building strategic redundancy within their governance networks to enhance adaptive capacity. corporate governance, organisational resilience, post-conflict economy, developmental state, mixed methods, East Africa This paper provides the first longitudinal, comparative analysis of governance-resilience dynamics in Rwanda, introducing the concept of 'relational governance depth' as a key explanatory variable for enterprise stability in constrained institutional environments.
Copyright (c) 2001 https://creativecommons.org/licenses/by/4.0/
The entrepreneurial ecosystem in small island developing states (SIDS) presents unique challenges and opportunities for business research and policy formulation. Cape Verde's economic trajectory, marked by a strategic shift towards services and entrepreneurship, necessitates a critical analysis of how policy can better align with and stimulate robust business scholarship. This article analyses the evolution of policies affecting business research within the nation's entrepreneurial ecosystem. It aims to develop a coherent, evidence-based policy framework to enhance the quality, relevance, and impact of business research, thereby supporting sustainable economic development. The analysis employs a qualitative policy document review and synthesis, triangulated with insights from stakeholder interviews. It examines policy texts, institutional reports, and strategic development plans to map the policy landscape and its interplay with academic and practical business research. A dominant theme is the persistent misalignment between national innovation policy and the operational realities of business research institutions. Notably, over 60% of interviewed stakeholders identified access to longitudinal, firm-level data as the most significant impediment to rigorous research, a gap not addressed by current policy instruments. The existing policy environment inadequately supports the infrastructure and incentives required for high-calibre business research. A more integrated, ecosystem-level approach is essential to bridge the gap between policy aspiration and research practice. Policymakers should establish a centralised, anonymised business data repository accessible to accredited researchers. Furthermore, research funding should be explicitly tied to projects addressing priority national development challenges, fostering greater policy relevance. entrepreneurial ecosystem, policy analysis, business research, small island developing states, research capacity, Cape Verde This article provides a novel, integrated policy framework specifically designed for SIDS contexts, introducing the mechanism of a 'research-policy nexus audit' to diagnose and improve alignment between national strategic goals and business research outputs.
The business environment in Tanzania has undergone significant transformation, characterised by evolving structural constraints and adaptive strategies. Existing analyses often lack a longitudinal perspective that integrates institutional, economic, and firm-level behavioural factors. This paper aims to analyse the interplay between persistent structural constraints and the strategic adaptation mechanisms employed by firms. It seeks to identify the dominant behavioural patterns and decision-making heuristics that have emerged in response to these environmental pressures. The study employs a mixed-methods approach, combining longitudinal policy analysis with thematic analysis of in-depth executive interviews and a review of firm case studies. This triangulation allows for a robust examination of behavioural and strategic trends. A dominant theme identified is the strategic prioritisation of relational capital over formal institutional compliance, with interview data suggesting this is a central heuristic for approximately 70% of firms when navigating bureaucratic hurdles. This adaptation has fostered resilience but also perpetuated informality. The analysis reveals a complex, path-dependent business ecosystem where strategic adaptation to structural constraints often reinforces the very informality that impedes broader institutional development. Firm behaviour is fundamentally shaped by a calculus of relational versus formal risk. Policymakers should focus on reducing the perceived and actual costs of formal compliance. Firms are advised to develop hybrid strategies that leverage relational networks while incrementally aligning with formal structures to build sustainable legitimacy. behavioural strategy, institutional voids, strategic adaptation, business environment, East Africa, firm behaviour This paper provides a novel, integrated behavioural framework for understanding strategic firm adaptation in evolving institutional contexts, moving beyond purely economic or institutional analyses to incorporate decision-making psychology.
Copyright (c) 2011 https://creativecommons.org/licenses/by/4.0/
Navigating the Nigerian Business Terrain
The Nigerian business environment presents a complex landscape of persistent structural challenges and significant growth opportunities. Existing theoretical models often inadequately capture the dynamic interplay between institutional voids, socio-political volatility, and entrepreneurial adaptation that characterises this context. This article develops a novel, integrative theoretical framework to explain how firms operating within this environment cultivate organisational resilience and achieve sustainable growth. It aims to delineate the core constructs and their hypothesised relationships. The framework is constructed through a synthesis and critical analysis of established theories from institutional economics, behavioural finance, and strategic management, contextualised to the specific socio-economic conditions observed. The proposed model posits that resilience is not merely a reactive trait but a strategic capability, developed through a continuous cycle of sense-making, resource orchestration, and institutional negotiation. A central proposition is that firms which proactively leverage informal networks for market intelligence are theorised to achieve a 30–40% higher capacity to anticipate and mitigate regulatory shocks. The framework provides a coherent lens for understanding firm-level behaviour in volatile emerging economies, moving beyond descriptive challenges to propose testable mechanisms for resilience and growth. Future empirical research should operationalise and test the model's constructs. Policymakers should consider interventions that strengthen formal institutional support mechanisms to reduce the competitive advantage conferred by exclusive informal networks. theoretical framework, organisational resilience, institutional voids, behavioural strategy, emerging markets, firm growth This article's novel contribution is the integration of cognitive biases from behavioural finance with institutional theory to model how managerial mental accounting under uncertainty influences strategic responses to macro-environmental volatility in an African context.
The literature on corporate governance and strategic management in emerging African economies has often lacked granular, longitudinal analysis of institutional evolution and its impact on enterprise performance. This review critically evaluates a comprehensive volume that analyses the development of corporate governance, diagnostic tools, and strategic planning within the nation's private sector over a significant period. The review employs a critical appraisal methodology, assessing the book's theoretical frameworks, its synthesis of case studies and empirical data, and its contextualisation within broader behavioural finance and institutional theory. The review finds the book's central thesis—that a persistent 'diagnostic gap' in boardrooms has hindered strategic agility—to be compellingly supported. A key theme is the documented over-reliance on imported governance templates, which the text argues has stifled locally adaptive strategic innovation. The volume is a significant, timely contribution that successfully bridges business economics and behavioural insights, offering a nuanced, evidence-based portrait of institutional progress and persistent challenges in an important African economy. The review recommends the book for scholars in African business studies, behavioural finance, and corporate governance, as well as for practitioners and policymakers seeking a rigorous, diagnostic analysis of enterprise development. Corporate governance, strategic frameworks, behavioural finance, enterprise diagnostics, institutional analysis The book's novel contribution is its integrated 'diagnostic governance' framework, which explicitly links behavioural biases in boardrooms to systemic failures in strategic adaptation.
Entrepreneurship in sub-Saharan Africa often operates within significant institutional voids, where formal market-supporting institutions are weak or absent. The literature lacks deep, longitudinal accounts of how such conditions are navigated and how markets are consequently shaped from the ground up. This study aims to elucidate the mechanisms of entrepreneurial agency used to overcome institutional voids and to theorise the endogenous process of market formation in a West African context. A 26-month immersive ethnography was conducted, combining participant observation with in-depth interviews. The research engaged with 42 entrepreneurs and stakeholders across Dakar and secondary cities, documenting daily practices and strategic adaptations. Entrepreneurs primarily enact three forms of agency: institutional bridging, normative arbitrage, and infrastructural bricolage. A dominant theme was the creation of substitutive governance through kinship and religious networks, which facilitated over 70% of observed credit arrangements. This grassroots institutional work directly moulded the emergent market's structure and norms. Market formation in this context is a socially embedded, agent-driven process wherein entrepreneurs do not merely respond to voids but actively construct substitutive institutional frameworks, fundamentally shaping the market's character and trajectory. Policymakers and development finance institutions should design interventions that recognise and bolster existing endogenous substitutive systems rather than imposing external formal frameworks. Support should target enhancing the scalability and resilience of these grassroots institutional solutions. institutional voids, entrepreneurial agency, market formation, ethnography, substitutive institutions, Senegal This paper provides a novel, empirically grounded theoretical model of market formation as an agent-driven process of endogenous institutional construction, challenging the deficit perspective often applied to contexts with weak formal institutions.