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 Coordinator

Soeren 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 & Socialising

2nd day (Wednesday 27th Feb 2013): Theoretical framework etc (part II) and PhDs

3rd 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:

Firm

Market

Institutions


Firm level:

Resource based theories

Resources

Capabilities (static, dynamic)

Success (performance)

Strategies


Institutions:

Institutional theory

State-business-relations

Formal and informal


Markets (market institutions):

* Macro economic conditions

* Trade

* Industry (global, regional, local)

* Competitors

Not to be theorised – for granted!


Assumptions:

A. Critical regarding usage of theories and concepts

B. Some to be dealt with in survey, Other wait until case studies

C. Common core (comparison) - with room for individual wishes



• Keep it simple and practical

‘Resources and capabilities’

• Not ‘dynamic capabilities’ and

• Not ‘ sustained performance /competitive advantages’



• Translate into what we will ask for in the field

‘Resources’

- Physical

- Human, and

- Financial


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?


‘Success’ (performance)

- Which indicators?

- Financial and non-financial?

1) Financial

2) Market

3) Managerial

4) Human Resources, and 5) Technological/innovation?


‘Success’ (performance)

- Missing the institutions

6) No of & level of contacts to government

7) Involvement in business associations

8) Knowledge on regulations (local and global)?


‘Strategies’

-Identification of strategies

-Which strategies seem to be more or less successful?

* Over time* In certain sectors, and/or

* Under certain conditions



-Influence of formal and informal institutions on firm strategies



Formal:

* Infrastructure?

* Government (ministries) & regulations

Informal:

* Norms, values and culture

* Trust and relationships


State-Business-relations:

Formal:

* To ministries (decision makers) – From ministries

* Directly or indirectly

Informal:

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


Analytical framework:

Firm level

* Resources

* Capabilities

* Performance (or indicators)


Analytical framework:

Influence of institutions and markets

Leading 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 steps

A)Survey

B)Case studies

C)Analysis of strategies and

degrees of success

(- Over time etc)


Methodological implications:

A)Survey

We focus on certain data

Patterns and overview

Selection of cases


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


Summary Day 1:

•Theoretical framework

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

* Institutions

* Markets


Summary Day 1:

•Indicators

* Financial and

* Non-financial

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

respondents)


Summary Day 1:

•Survey

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

* Common core (generic)

* Individual (sector and/or country)


Summary Day 1:

•Survey

* Clarify understanding of agroprocessing and/or agrobusiness

* See T-CBP, p. 7


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-processing

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

Zambia: Grain Milling, Horticulture, Dairy, Meat, Sauces and Jams, Juices?, Edible oils?

Joint: Grain Milling, Horticulture, Sauces and Jams (Edible Oils?)


Administration:

•Timing (when, for how long?)

•Face-to-face

•Sequence: Common part first, then country

•Processing: SPSS

•Analysing: From Analytical framework


Additional input:

•Peter K

•Lettice

•Dorothy?

•All ….Processing: SPSS

SAFIC Joint Workshop no 2 – PhDs

PhD projects – presentations:

One by one

15 minutes

Two discussants

Comments from rest

Summary on cross-cutting issues


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!


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


Agreement on entry parameters

•Ownership

•Age of establishment

•Number of permanent employees



•(Local) Ownership

•Majority owned by Citizen(s) of the country



•Age: Five years since start-up

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


Subsectors in food processing

•Grain Milling

•Edible Oils

•Horticulture (minus flowers)

•Dairy

•Sauces and jams

•Snacks


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 turnover

Non-financial:

2) Market – Expansion

3) Managerial – No of person trained

4) Human resource – Retention rate

5) Technology – level of investment

SAFIC Joint Workshop no 2 – Indicators of success

Non-financial (continued):

6) Membership of BAs

7) Membership of committees

8) Growth in no of employees

9) ?

SAFIC Joint Workshop no 2 – Survey format revised

A. New draft

B. Process

* Comments

* Committee

* Administration (tool-kit ..)

* Deadline


B. Process

* Comments?


B. Process

* Committee & tasks

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


B. Process

Tasks:

1. Finalise instrument

2. Write tool-kits

A. Content of questions

B. Administration


B. Process

Deadline(s):

1. Instrument?

2. Tool-kits?

A. Content of questions

B. Administration


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

SAFIC Joint Workshop no 1 – Nairobi 21-23 February 2012

Theory/Analytical framework:

Firm level theories:•Strategic management•Principal-agency theory•Transaction Cost Economics•Resource-Based Perspectives



Firm level theories:•Resource-Based Perspectives

•Broad school of thoughts

- Firm

- Industry, and

- Sociological perspectives



Firm level theories:•Resource-Based Perspectives

‘Firm as our key analytical unit, represented by its managers and owners’



Firm level theories (RBP)•Barney (1991), Peteraf (1993), Wernerfeldt (1994), etc, etc)

•Many terms (assets, resources)•Static – not dynamic



Firm level theories (RBP):•Penrose (1959 – resources ..)•Richardson (1972 – capabilities)•Grant (1991 – resources (physical, human and financial) and capabilities)•Teece et al (1997 – dynamic capabilities)



Key concepts:

3. Firm internal factors:

‘the (physical, human and financial) resources and the (dynamic) capabilities (Grant 1991; Teece et al. 1997) that the have and develop over time’



Key concepts:

4. Firm external factors:

‘are the market economic institutions on the one hand and the social and political institutions on the other hand, whereby access to certain resources and capabilities can be accomplished’



Key concepts:

5. Institutions:

‘ranging from relationship-based, personalised social and political transactions to rule-based impersonal exchanges under prevailing market conditions’



Key concepts:

5. Institutions - informal – formal’

‘informal covers private support and private governance institutions and networks in view of market and state failures’

‘formal includes relations to public and political institutions and actors’


Methodology:

Phases/steps

* Explorative

* Extensive

* Intensive

* Abductive (theoretical) & Comparative


Methodology:

Mapping & Theoretical refinement

Survey

Case studies (repeated) & Interviews with stakeholders (govt, business associations, etc)

Analyses & Conclusions (empirically and theoretically)


Methodology:

Mapping & Theoretical refinement•The firms in the sectors

Primary data collection +

Secondary (use existing sources)

local institutions and sources + WB RPED, UNIDO’s African Investors Survey, Centre for the Study of African Economies (Oxford)


Methodology:

Mapping & Theoretical refinement•Industry and Institutional trends (in relation to the sectors)

Primary data collection (identifying relevant persons and institutions – formal and informal) +

Secondary sources (reports, materials by local institutions and foreign)


Methodology:

Mapping & Theoretical refinement•Refinement of common theoretical framework•Singling out analytical categories and hypotheses to structure the subsequent data gathering and analysis


Methodology – lead outputs:

Mapping leading to the country background reports

&

Theoretical refinement leading to publishing an article or two


Methodology:

Survey (extensive):•All African/local firms in the sectors•More than 20 employees and more than 5 years in existence

•Reveal first results on to what extent and in what ways that firms have been successful - patterns


Methodology - outputs:

Survey leading to a number of papers and/or journal articles (one from each sector …..)

Survey leading to selected of firms for case studies


Methodology:

Case studies (intensive)

Kenya: 20 (10 success + 10 not)

Tanzania: 32 (16 s + 16 not)

Zambia: 32 (16 s + 16 not)

Agribusiness/processing: Half

Other sectors: Half


Methodology:


Semi-structured interviews with managers (History, resources, capabilities, linkages/relations - formal and informal institutions etc, etc)

Repeated over three years


Methodology:


Semi-structured interviews with representatives of key institutions on policies, market conditions, linkages

Repeated over three years


Methodology - outputs:

Case studies (intensive) & Information from representatives leading to•a number of working papers and journal articles, plus •chapters for the case book, plus •PhD theses and Master projects/theses•Policy releases, briefs & workshops


Methodology:

Abductive (theoretical) & Comparative

•Theoretical assessment

- How does our analytical framework/model work?

- Refinement


Methodology:


•Cross sector•Cross country studies•Extracting firm strategies over time, within and across sectors and countries (longitudinal element)•Policy implications


Methodology - output:


•Working papers•Journal articles•Policy briefs & Workshops•New research application?


Country plans:

The coming year

Who will do what, when

1 hour in each country team

10 minutes presentation


Project plans - The coming year:•Getting started•Employ PhDs (& getting them going)•Country plans•Timing across countries•Outputs•Conferences (PNEG)•Travel to DK (PhDs + senior researchers)•Joint workshops•Conferences in Tanzania & DK


Project plans - The coming year:•Timing across countries

When to get started with mapping + contract to representatives from key institutions

Which data to collect & How to extract and distribute data from databases

When to expect to finish


Project plans - The coming year:•Outputs

Country workshops

K: Local Team retreat

Z: Country team

T: Local + Country team retreat

Working papers & journal articles

Layout for working papers

Quality assurance/control

Copy editing

Qualify to be listed as an author

Country Background reports?


Project plans - The coming year:•Conferences

Travel (according to budget):

Tanzanian researchers to DK

PEG – NET, Dakar, Senegal, 6-7 Sept


Project plans - The coming year:•Travel to DK (PhDs + senior researchers)

PhDs – move to 2012(?)

Late August to late October

PhD course 28-31 August

Getting started on literature search & readings etc

Senior researchers: Tanzanians to DK


Project plans - The coming year/future:•Joint workshops – when?

2013: Zambia

2014: International conference/workshop in Tanzania

2015: Conference in Copenhagen

2016: Tanzania

PhDs to DK:

2012 – and ?

2013 + 2014 ….


All other matters:

Budget,

transfers,

accounting principles,

reporting procedures,

web site, etc


All other matters:

Budget

Flexible – we can adjust (to some extent and according to certain rules)

If we ask and/or explain in annual reports


All other matters:

Transfers

A bit of a headache until now

In place soon

Once a year (?), be ready early

Adjust (deficit or surplus)


All other matters:

Accounting principles

Importance – long term legitimacy

DFC guidelines and regulations (www.dfcentre.research) Called ‘General Conditions for Grants to Development Research Supported through Denmark’s International Development Cooperation’

http://www.dfcentre.research/


All other matters:


•According to budget – not outside•All expenditures documented•+/- 10% of budget items (1-10)•If wages up, then apply•If more than +/- 10% then apply


All other matters:


•In doubt, ask Soeren or DFC•Accounts every year (according to budget format/items – along with annual status report)•No later than 1.6. to CBS/Soeren


All other matters:

Reporting procedures

•Annual status report•Progress according to outputs•Explain changes + suggested future adjustments•Written – xx pages•No later than 1.3. to Soeren!!


All other matters:

Web site (www.cbs.dk/cbds/safic)

•Thanks to CBDS research assistant Sameer Aziz•Continue to upgrade & update•Send input (CVs, pictures, etc)•Workshop docs/pps


All other matters:


•Working papers•Conference papers•Country background papers•Policy releases and briefs•Info on journal articles


All other matters:


Also:•Master projects & Theses?•Shared documents?

Goggle docs, Yahoo, Drop box•Other?


All other matters:

Other?

Thank you & See you …… !

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

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