SAFIC Joint Workshop no 2 – Livingstone 26-28 February 2013 SAFIC Project Coordinator Soeren...

SAFIC Joint Workshop no 2 – Livingstone 26-28 February 2013

SAFIC Project CoordinatorSoeren Jeppesen, Assoc. Prof., CBS

Welcome

SAFIC Joint Workshop no 2 – Livingstone 26-28 February 2013

Project/workshop ground rules:Workshops•Focus on presenters & activities

•Mobiles off

•Laptops only when typing

SAFIC Joint Workshop no 2 – Program:

1st day (Tuesday 26th Feb 2013):Results 2012, Country Background papers/reports, Theoretical framework/Indicators/survey & Socialising2nd day (Wednesday 27th Feb 2013): Theoretical framework etc (part II) and PhDs3rd day (Thursday 28th Feb 2013):Country plans, The year 2013, Practicalities & Viewing the Falls

SAFIC – Program – Day 1 (26 Feb 2013)

• Results (Overall and by teams)• Break• Country Background Papers/reports

& what have we learnt, including lunch & Break

• Theoretical framework/Indicators of ‘success’ and the survey instrument (part 1)

• Dinner

SAFIC Joint Workshop no 2 –Practicalities:

* Food (breakfast, lunch and dinner at Crossroads Lodge)

* Internet (…., password: …..)

* Any other questions, ask us (Douglas, Godfrey and local team)

SAFIC Joint Workshop no 2 – Project aims, objectives and outputs:

To refresh our minds

Aims:* To investigate how and why African firms are able to be successful in changing business and institutional environments

SAFIC Joint Workshop no 2 – Aims (2):

(LFA-version)To contribute to enhanced understanding of economic growth and employment through new knowledge on firm development in the African private sector

SAFIC Joint Workshop no 2 – Objectives:

* To identify strategies that lead to sustained firm performance, and

* To seek to explain the firm’s success by looking at the interface between firm internal factors (resources and capabilities) and firms external factors (market structures and institutions – formal and informal)

SAFIC Joint Workshop no 2 – Objectives (2):

(LFA version):

* To understand the origins of local firms’ success in Kenya, Tanzania and Zambia* as a means to inform firm strategies and economic development policy in these countries

SAFIC Joint Workshop no 2 – Objectives (Key research question):

* How and why certain local firms in the three countries manage to grow with different degrees of success under changing conditions and often volatile market and institutional conditions?

SAFIC Joint Workshop no 2 – Outputs:

Academic:

* 20 working & conf. papers* 20 journal articles* 3 country background reports* 1 book (selection of case studies)* 1 post-doc; 5 PhD theses; 21

Master theses * Workshops (13) and Conferences

(2)

SAFIC Joint Workshop no 2 – Outputs (2):

Policy:* Press releases* Policy briefs, at least 5* 4 Policy/stakeholder

workshops* Interaction with

stakeholders

SAFIC Joint Workshop no 2 – Results for 2012

What did we achieve in our first year?

A lot!• Teams in place• 5 PhDs enrolled & started• 2 Associate Professors• Web site• Administrative procedures!

SAFIC Joint Workshop no 2 – Results for 2012 (2)

• Joint plus country team workshops• Mapping underway (into the field –

organisations/institutions and firms)

• Country Background Papers/Reports on the way

• First draft paper/publication• Master thesis students started

SAFIC Joint Workshop no 2 – Results for 2012 (3)

The team results/outputs

•Tanzania•Zambia•Kenya

SAFIC Joint Workshop no 2 – Plans and output for 2013:

• CBPs completed• Survey undertaken• Case firms selected and

interviewed (first time)• PhDs moved further• Master thesis students – more

• 2012 Annual report and accounts

SAFIC Joint Workshop no 2 – Plans and output for 2013:

• Workshops (one joint plus team/field workshops)

• Update web (teams and PhDs)

• Working and conference papers?• Journal articles?• Initiate discussion of ‘case format’ –

what is a case study? And what does a ‘case’ for teaching entail?

SAFIC Joint Workshop no 2 – Country Background Papers

Presentation of CBPs/CBRs:

• Key findings• Learnings, and • Reflections for the upcoming

field work and the conceptual parts

SAFIC Joint Workshop no 2 – Country Background Papers

Presentation of CBPs/CBRs:

• Kenyan team• Tanzanian team, and • Zambian team

• 20 minutes for presentation• 10 minutes for comments

SAFIC Joint Workshop no 2 – Theoretical framework, indicators and surveyOverall issue:• Need refinement of analytical

framework (key concepts and their relationship)

• Experiences and reflections• Theoretical considerations• Survey instrument (content)

SAFIC Joint Workshop no 2 – Reflections on cross-cutting issues Methodological/empirical

learnings – for the project?

* Challenges in the field?* Timing & Content of survey* (and later case studies)* Use of existing data (World Bank and other)?

SAFIC Joint Workshop no 2 – Theoretical framework, indicators and surveyTheoretical considerations:

Which main theories and concepts to use?

Implications for the analytical framework(s)?

SAFIC Joint Workshop no 2 – Theoretical considerations (2)

Main theories and concepts:

FirmMarketInstitutions

SAFIC Joint Workshop no 2 – Theoretical considerations (3)

Firm level:Resource based theories

ResourcesCapabilities (static, dynamic)Success (performance)Strategies

SAFIC Joint Workshop no 2 – Theoretical considerations (4)

Institutions:

Institutional theoryState-business-relations

Formal and informal

SAFIC Joint Workshop no 2 – Theoretical considerations (5)

Markets (market institutions):* Macro economic conditions* Trade* Industry (global, regional, local)* Competitors

Not to be theorised – for granted!

SAFIC Joint Workshop no 2 – Theoretical considerations (6)

Assumptions:A. Critical regarding usage of

theories and conceptsB. Some to be dealt with in survey,

Other wait until case studiesC. Common core (comparison) -

with room for individual wishes

SAFIC Joint Workshop no 2 – Theoretical considerations (7)

A. Critical regarding usage of theories and concepts

• Keep it simple and practical‘Resources and capabilities’

• Not ‘dynamic capabilities’ and• Not ‘ sustained performance

/competitive advantages’

SAFIC Joint Workshop no 2 – Theoretical considerations (7)

A. Critical regarding usage of theories and concepts

• Translate into what we will ask for in the field‘Resources’- Physical- Human, and- Financial

SAFIC Joint Workshop no 2 – Theoretical considerations (8)

Translate into what we will ask for in the field

‘Capabilities’- How are organisational

practices carried out?- What do they do in the

firm (selected areas)?- Changes in this over time?

SAFIC Joint Workshop no 2 – Theoretical considerations (9)

‘Success’ (performance)- Which indicators?- Financial and non-financial?

1) Financial2) Market3) Managerial4) Human Resources, and 5)

Technological/innovation?

SAFIC Joint Workshop no 2 – Theoretical considerations (10)

‘Success’ (performance)- Missing the institutions

6) No of & level of contacts to government7) Involvement in business

associations8) Knowledge on regulations (local and global)?

SAFIC Joint Workshop no 2 – Theoretical considerations (11)

‘Strategies’-Identification of strategies-Which strategies seem to be more or less successful?

* Over time* In certain sectors, and/or* Under certain conditions

SAFIC Joint Workshop no 2 – Theoretical considerations (12)

Institutional theory

-Influence of formal and informal institutions on firm strategies

SAFIC Joint Workshop no 2 – Theoretical considerations (13)

Institutional theoryFormal:

* Infrastructure?* Government (ministries) &

regulationsInformal:

* Norms, values and culture* Trust and relationships

SAFIC Joint Workshop no 2 – Theoretical considerations (14)

State-Business-relations:Formal:

* To ministries (decision makers) – From ministries

* Directly or indirectlyInformal:

* Relationships, networks and ties (personal, clan, religion)

SAFIC Joint Workshop no 2 – Theoretical considerations (15)

Analytical framework:

Firm level* Resources* Capabilities* Performance (or indicators)

SAFIC Joint Workshop no 2 – Theoretical considerations (16)

Analytical framework:

Influence of institutions and marketsLeading to:A) Identification and B) analysis of 1) strategies and 2) degrees of success

SAFIC Joint Workshop no 2 – Theoretical considerations (16)

Analytical framework:

Influence of institutions and marketsLeading to:A) Identification and B) analysis of 1) strategies and 2) degrees of success

SAFIC Joint Workshop no 2 – Survey (and case studies)

Methodological implications:Different stepsA)SurveyB)Case studiesC)Analysis of strategies and

degrees of success(- Over time etc)

SAFIC Joint Workshop no 2 – Survey (and case studies)

Methodological implications:

A)Survey

We focus on certain dataPatterns and overviewSelection of cases

SAFIC Joint Workshop no 2 – Survey (and case studies)

A) Survey

Limitations:* Changes of time* Causal relations* ‘Superficial’

SAFIC Joint Workshop no 2 – Program

2nd Day (Wednesday 27th Feb)•Further on theoretical framework, indicators and survey•PhDs•(Master theses – Thursday)•The Falls …•With breaks, lunch and dinner!

SAFIC Joint Workshop no 2 – Program (Day 2)

Further on

•Theoretical framework•Indicators, and•Survey

SAFIC Joint Workshop no 2 – Program (Day 2)

Summary Day 1:•Theoretical framework

* Firm (resources, capabilities, success /performance & strategies)

* Institutions* Markets

SAFIC Joint Workshop no 2 – Program (Day 2)

Summary Day 1:•Indicators

* Financial and* Non-financial* Balance the ‘ideal’ with the ‘realistic’ (time for & can get from firms and other

respondents)

SAFIC Joint Workshop no 2 – Program (Day 2)

Summary Day 1:•Survey

* Merge input from Goodluck and Kenya/PK with input from Peter K

* Common core (generic)* Individual (sector and/or

country)

SAFIC Joint Workshop no 2 – Program (Day 2)

Summary Day 1:•Survey

* Clarify understanding of agroprocessing and/or agrobusiness

* See T-CBP, p. 7

SAFIC Joint Workshop no 2 – Program (Day 2)

Summary Day 1:•Survey

* Align sub-sectors in three countries

SAFIC Joint Workshop no 2 – Summary Day 1 (survey)

Countries: Sub-sectorsTanzania: Dairy, Grain Milling, edible oils, horticulture, fish- processingKenya: Grain Milling, Dairy, Horticulture, Juices, Sauces and Jams, and SnacksZambia: Grain Milling, Horticulture, Dairy, Meat, Sauces and Jams, Juices?, Edible oils?Joint: Grain Milling, Horticulture, Sauces and Jams (Edible Oils?)

SAFIC Joint Workshop no 2 – Summary Day 1 (survey)

Administration:•Timing (when, for how long?)•Face-to-face•Sequence: Common part first, then country•Processing: SPSS•Analysing: From Analytical framework

SAFIC Joint Workshop no 2 – Summary Day 1 (survey)

Additional input:•Peter K•Lettice•Dorothy?•All ….Processing: SPSS

SAFIC Joint Workshop no 2 – PhDs

PhD projects – presentations:

One by one15 minutesTwo discussantsComments from rest

Summary on cross-cutting issues

SAFIC Joint Workshop no 2 – PhDs

PhD projects:

A)Status – reflections (How far, the needed level of clarification, how to move towards final approval?)B)Progress (when to be approved –within next 3-4 months (need input as part of reporting to DFC plus need to see ‘satisfactory progress)C)DFC/FFU: If not completed, pay back!

SAFIC Joint Workshop no 2 – PhDs

PhD projects:

D) Supervision, timing and other cross-cutting issues (next travel to Denmark and course work) for PhD projects

– if we have time today!

SAFIC Joint Workshop no 2 – Program February 28th 2013

• Agreement on entry parameters• Subsectors for the food processing

industry• Success indicators• Survey format & process• PhDs – any additional issues?• Master thesis students• Individual country studies & plans• Farewell to Tanzanian team• Further work / leisure ….

SAFIC Joint Workshop no 2

Project ground rules (I):Workshops•Focus on presenters & activities

•Mobiles off

•Laptops only when typing

SAFIC Joint Workshop no 2

Agreement on entry parameters

•Ownership

•Age of establishment

•Number of permanent employees

SAFIC Joint Workshop no 2

Agreement on entry parameters

•(Local) Ownership

•Majority owned by Citizen(s) of the country

SAFIC Joint Workshop no 2

Agreement on entry parameters

•Age: Five years since start-up

•Number of employees (full time): (minimum) Ten

SAFIC Joint Workshop no 2

Subsectors in food processing

•Grain Milling•Edible Oils•Horticulture (minus flowers)•Dairy•Sauces and jams•Snacks

SAFIC Joint Workshop no 2 – Summary Day 1 (survey)

Countries: Sub-sectorsTanzania: Dairy, Grain Milling, edible

oils, horticulture, fish-processing, tea and coffee

Kenya: Bakery, Grain Milling, Horticulture, Juices, Sauces and Jams, and Snacks

Zambia: Grain Milling, Horticulture, Meat, Sauces and Jams

SAFIC Joint Workshop no 2 – Thursday 28th Feb 2013

Indicators of degrees of success:A. Financial & Non-financial

B. Measures of high or low performance

C. Limited number for survey

SAFIC Joint Workshop no 2 – Indicators of success

Financial: 1) Change in turnoverNon-financial:2) Market – Expansion3) Managerial – No of person trained4) Human resource – Retention rate5) Technology – level of investment

SAFIC Joint Workshop no 2 – Indicators of success

Non-financial (continued):6) Membership of BAs7) Membership of committees 8) Growth in no of employees 9) ?

SAFIC Joint Workshop no 2 – Survey format revised

A. New draftB. Process

* Comments* Committee* Administration (tool-kit ..)* Deadline

SAFIC Joint Workshop no 2 – Survey format revised

B. Process

* Comments?

SAFIC Joint Workshop no 2 – Survey format revised

B. Process

* Committee & tasks

* Who? (David/Goodluck, Radha/Wamalwa, Soeren)

SAFIC Joint Workshop no 2 – Survey format revised

B. ProcessTasks:

1. Finalise instrument2. Write tool-kitsA. Content of questionsB. Administration

SAFIC Joint Workshop no 2 – Survey format revised

B. ProcessDeadline(s):

1. Instrument?2. Tool-kits?A. Content of questionsB. Administration

SAFIC Joint Workshop no 2 – PhDs

Additional issues?Deadline for plans

Supervision?Courses?Trip to Denmark?

SAFIC Joint Workshop no 2 – Master theses:

• Kenya (6), Tanzania (10), Zambia (5)• Small funds for support• Link closely to project, e.g.:

* Data collection (quantitative & qualitative), with particular focus* Theoretical perspectives* Sector wise

• Status and reflections?

SAFIC Joint Workshop no 2 – Individual country groups

Plans and objectives for 2013:

•Field work•Team workshops•Organisation•Publications•Other?

•Plan to project coordinator

SAFIC Joint Workshop no 2 – Coming year & Next workshop

Survey

Case studies (when & what do we mean?)

PhDs

Travel

Next joint – conference in Tanzania

SAFIC Joint Workshop no 2 – Goodbye

SAFE TRAVEL!

Market structures and economic institutions

Political and Social institutions

FIRMResources and

Capabilities

Figure 1: Conceptualisation of the Firm and its Key Relationships

Development path and history

(Successful) performance

Strategy