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Huawei's linkages with local firms in Tanzania: Idiosyncratic benefits and risks
Author(s) -
Rwehumbiza Deusdedit. A.
Publication year - 2021
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.22076
Subject(s) - tanzania , spillover effect , multinational corporation , welfare , business , linkage (software) , developing country , public economics , industrial organization , economics , economic growth , finance , market economy , microeconomics , biochemistry , chemistry , socioeconomics , gene
Multinational enterprises are often characterized as forming a link between domestic firms and the overall welfare effect in host economies. However, there have been few studies of the idiosyncratic benefits and risks of firms in low‐income developing countries. Moreover, existing studies have been mainly based on archival, large‐scale datasets. Hence, based on spillover and linkage theories, this paper employs a triangulation technique to study Huawei in Tanzania to fill this gap. The findings show that concerted efforts need to be made between the host government and local firms to encourage appropriate linkages to avoid risks and to serve as channels for beneficial spillovers. The implications for practice and future research are discussed and a conceptual model is developed which this study suggests could be used to spur welfare effects in low‐income developing countries.