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Firms in Developing Countries:

A Theoretical Probe into theBorderland of Business Studies and

Development Studies

 Authors

Michael W. Hansen &

Henrik Schaumburg-MullerCentre for Business and Development studies, Copenhagen Business School

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Objective

• To focus on common themes related to firms andentrepreneurs.

• To study to economic perspective of firms and

entrepreneurs in developing countries w.r.tdevelopment and business studies.

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Research Methodology 

• Qualitative type of Research

Research Instrument

• Document Review

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Business Studies

• Focus on profit maximizing strategies ofentrepreneurs and firms.

• Study of the survival and growth of the firms.

Developments Studies• Focus on the development of economic, socialand political strategies of counties and regions.

• Study the role of entrepreneurs, firms and

markets in facilitating economic and socialdevelopment.

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Level of Study

• Micro (Individual firm, manager or entrepreneur)

• Macro (Country, region)

• Meso (Industry)

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Business studies vs Development studies

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Areas of Focus• Market Failure

• Institutions

• Entrepreneurship

• Firm Internationalization

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Market Failure• Large firms are detrimental to development.

• Diversification is key to success.

 AdvantagesTraining

Technology transferInnovation

DisadvantagesMonoply

Bargaining power

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• Government Institutions are central place forpolicy formulation.

• Institutional policies plays key role in bringing,sustaining and developing business.

Institutions

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Entrepreneurship

• Entrepreneur contributes to development onlydue to institutional support.

• Contributes to the social well being.• Business and Development studies have shared

interest for SME’s and entrepreneurship 

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Firm Internationalization• Global Value Chain

• MNC’s and FDI 

• Internationalization of DCF’s 

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Results of Analysis

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Critical Appreciation

• Operational definitions are well defined

• No Statistical data, analysis and evidenceprovided.

• Economic variables are not discussed.

• No geographical evidence provided whichdeveloping countries comes under this researchstudy.

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