South African Mobile Telecommunication Expansion into Emerging Markets: What to look out for
DOI: 10.54647/management63072 98 Downloads 57301 Views
Author(s)
Abstract
Mobile telecommunication (telecom) firms often face strategic, political, technological, infrastructural, and legal challenges during international expansion. Although some telecom companies have been successful in their expansion beyond borders, others closed down and returned to their countries of origin and South African (SAn) telecom firms are no exception. The aim of this paper is to outline SAn telecom firm’s market and discuss strategic factors which enhance successful expansion of mobile telecom companies into emerging markets. This research was undertaken using SAn listed mobile telecom firms. A response rate of 79% and 98% was obtained from the questionnaires and interviews, respectively. The study demonstrated that language and culture, resources, strategy, efficiency, and competitiveness impacts telecom firms’ growth within African markets; hence their compatibility during expansion is important. Additional factors considered were infrastructural development, human resources and government’s role. These factors were observed to have a bearing on the telecom firm’s competitiveness, ease of doing business and overall business success in the emerging markets. This study recommends that telecom firms minimise these factors’ negative impact whilst taking advantage of their positive influence.
Keywords
Competitiveness, Efficiency, Expansion, Government, Resources, Strategy, Telecommunication
Cite this paper
DR JOSEPH SIGAUKE, DR EMMANUEL MUTAMBARA,
South African Mobile Telecommunication Expansion into Emerging Markets: What to look out for
, SCIREA Journal of Management.
Volume 5, Issue 3, June 2021 | PP. 53-75.
10.54647/management63072
References
[ 1 ] | AGENCY STAFF. 2017. Shuter shakes up MTN management team. South Africa: Tech-central.[Internet:https://techcentral.co.za/shuter-shakes-up-mtn-management-team/73633/; downloaded on 2017-05-6]. |
[ 2 ] | AMBEKAR P. 2016. MTN – Darkest before the dawn, Corospondent. The Coronation Fund Managers, Institutional Quarterly. |
[ 3 ] | BARNEY J. 2001. Is the resource based view a useful perspective for strategic management research? Yes. The Academic Management Review 26 (1):41-56. |
[ 4 ] | BARNEY JB & PETERAF M. 2003. Unravelling the resources-based tangle. Management and Decision Economics 24:309 – 23. |
[ 5 ] | CASCIO WF. 2013. Managing human resources: Productivity, quality of work life, profits. 9th ed. Boston, MA: McGraw-Hill Irwin. |
[ 6 ] | CHIPUNZA C. 2018. Former Net-One CEO, POTRAZ, Chairman cartels. [Internet: http://www.financialgazette.co.zw/heres-full-letter-submitted-to-mnangagwa-by-former-netone-ceo-supa-potraz-chairman-and-others-said-to-be-a-mafia-type-cartel/; downloaded on 2018-01-07]. |
[ 7 ] | CUERVO A & GENC M. 2008. Transforming disadvantages into advantages: developing-country MNE in the least developed countries. Journal of International Business Studies 39 (6):957-979. |
[ 8 ] | DAVID RF & DAVID RF. 2015. Strategic management concepts and cases. 15th ed. UK: Pearson. |
[ 9 ] | DELOITTE. 2014. The future of telecoms in Africa: The blue print for the brave. |
[ 10 ] | DHLIWAYO J. 2013. A brief history of telecommunications in Africa. ICT Africa. [Internet: http://www.ictafrica.info/FullNews.php?id=10568; downloaded on 2015-10-07]. |
[ 11 ] | ERNST & YOUNG. 2009. Africa connected: A telecommunication growth story. EY’s Global communication centre. |
[ 12 ] | ERNST & YOUNG. 2014. Big data: Changing the way business compete and operate. [Internet:http://www.ey.com/Publication/vwLUAssets/EY_-_Big_data:_changing_the_way_businesses_operate/%24FILE/EY-Insights-on-GRC-Big-data.pdf; downloaded on 2016-04-25]. |
[ 13 ] | FRIEDMAN M. 1970. ‘The social responsibility of business is to increase its profit’, New York Times Magazine. 13 September 1970. [Internet: http://umich.edu/~thecore/doc/Friedman.pdf; downloaded on 2015-09-25]. |
[ 14 ] | GERDERMAN D. 2012. Location, location, location: The strategy of place. Business research for business leaders, Harvard Business School. |
[ 15 ] | GHEMAWAT P. 2008. Managing differences: The central challenge of global strategy. Harvard Business Review 85 (3):1-9. |
[ 16 ] | GLOBAL SYSTEM FOR MOBILE ASSOCIATION. 2014. The mobile economy report. [Internet: https://www.gsmaintelligence.com/research/?file=bb688b369d64cfd5b4e05a1ccfcbcb48&download; downloaded on 2015-10-05]. |
[ 17 ] | GLOBAL SYSTEM FOR MOBILE ASSOCIATION. 2015. The mobile economy report. [Internet: https://www.gsma.com/mobileeconomy/archive/GSMA_ME_SubSaharanAfrica_2015.pdf; downloaded on 2016-11-09]. |
[ 18 ] | GLOBAL SYSTEM FOR MOBILE ASSOCIATION. 2016. The mobile economy report. [Internet: https://www.gsma.com/mobileeconomy/archive/GSMA_ME_2016.pdf; downloaded on 2017-06-19]. |
[ 19 ] | GRANT RM. 2016. Contemporary strategy analysis. 19th ed. Chichester: John Wiley. |
[ 20 ] | GUPTA AK & GOVINDARAJAN V. 2000. Managing global expansion: A conceptual framework. Business Horizons Review, March – April 2000. |
[ 21 ] | HASHAI N & BUCKLEY P. 2014. Is competitive advantage a necessary condition for the emergence of multinational enterprise? Global Strategy Journal 4 (1). |
[ 22 ] | HCHAICHI R. 2014. Empirical analysis of business and social science. International Journal of Business and Social Science 5:203-209. |
[ 23 ] | HEIZER J & RENDER B. 2014. Operations management: Sustainability and supply chain management. 11th ed. England: Pearson Education. |
[ 24 ] | HERSEY P, BLANCHARD K & JOHNSON D. 2008. Management of organisational behaviour: Utilizing human resources. 9th ed. New Jersey: Prentice Hall. |
[ 25 ] | HILL CWL. 2012. International business: Competing in the global market place. 9th ed. McGraw-Hill. |
[ 26 ] | IBUKUNU Y. 2017. Nigerian MP absolves MTN of illegal repatriation. [Internet: https://www.businesslive.co.za/bd/companies/telecoms-and-technology/2017-11-09-nigerian-mps-absolve-mtn-of-illegal-repatriation/; downloaded on 2017-10-25]. |
[ 27 ] | KABUE LW & KILIKA J. 2016. Firm resources, core competences and sustainable competitive advantage: An integrative theoretical framework. Journal of Management and Strategy 7 (1):98-108. |
[ 28 ] | KERR W & PERDIKIS N. 2014. A guide to the global business environment. The economics of international commerce. |
[ 29 ] | KOTLER P & KELLER KL. 2016. Marketing management. 15th ed. Essex: Pearson Education. |
[ 30 ] | LOUW L & VENTER P. 2013. Strategic management: Developing sustainability in Southern Africa. 3rd ed. Oxford University Press. |
[ 31 ] | MAKETA LT. 2009. MTN entry strategy in Nigeria. Cape Town: University of Cape Town (MBA thesis). |
[ 32 ] | MTN. 2016. Annual financial report. [Internet: https://www.mtn.com/MTN%20Service%20Detail%20Annual%20Reports1/booklet.pdf; downloaded on 2017-05-10]. |
[ 33 ] | MTN. 2017. [Internet: http://www.mtn.com; downloaded on 17-08-17]. |
[ 34 ] | NG’WANAKILALA F. 2017. Vodacom Tanzania extends deadline for stock market listing. [Internet: https://www.moneyweb.co.za/news/companies-and-deals/vodacom-tanzania-extends-deadline-for-stock-market-listing/; downloaded on 2017-07-23]. |
[ 35 ] | PANT A & RAMACHANDRAN J. 2012. Legitimacy beyond borders: Indian software services firms in the United States. Global Strategy Journal 2 (3):224-243. |
[ 36 ] | PORTER ME. 1990. The Competitive advantage of nations. New York: The Free Press. |
[ 37 ] | PORTER ME. 2001. Strategy and internet. Harvard Business Review 79 (3):63–78. |
[ 38 ] | QOBO M & DUBE M. 2015. South Africa’s foreign economic strategies in a changing global system. Economic Diplomacy Programme, Policy insights 07. |
[ 39 ] | REED M. 2009. Confusion reigns over M&A in Middle East and Africa. Intelligence centre blog. [Internet: http://www.intelligencecentre.net/2016/06/08could-nationalism-threaten-telecoms-globalization/; downloaded on 2016-06-08]. |
[ 40 ] | SCHILLER BR, HILL CD & WALL SL. 2013. The economy today. 13th ed. Boston: McGraw-Hill . |
[ 41 ] | SIGAUKE J. 2014. The company secretary’s role in corporate governance: Private and public owned South African companies. Pretoria: University of South Africa. (MBL thesis-unpublished). |
[ 42 ] | STANLAKE GF. 2008. Introductory economics. Longman. |
[ 43 ] | TELKOM. 2015. Annual financial report 2015. [Internet: www.telkom.co.za/ir/apps_static/ir/.../financial/.../Telkom%20IR%202015%20Final.P; downloaded on 2017-07-23]. |
[ 44 ] | THOMPSON AT, STRICKLAND AJ & GAMBLE JE. 2016. Crafting and executing strategy. 20th ed. McGraw Hill. |
[ 45 ] | UNESCO. 2015. UIS data centre. Institute for statistics. UNESCO. |
[ 46 ] | VODACOM. 2011. Annual financial report 2011. [Internet: http://www.vodacom.com/pdf/integrated-reports/annual-report-2011/ar-full.pdf; downloaded on 2015-09-21]. |
[ 47 ] | VODACOM. 2015. Annual financial report 2015. [Internet: http://www.vodacom.com/pdf/integrated-reports/integrated-report-2015/annual-financial-statements.pdf; downloaded on 2016-07-05]. |
[ 48 ] | VODACOM. 2016. Annual financial report 2016. [Internet: http://www.vodacom.co.za/cs/groups/public/documents/document/integrated-report-2016-lores.pdf; downloaded on 2017-05-31]. |
[ 49 ] | VODACOM. 2017. [Internet: http://www.vodacom.com; downloaded on 2015 – 2017]. |