How who you know impacts on what you know : A qualitative study into the partnership and employment strategies of South African companies in Sub-Saharan Africa, using social network theory

Abstract

Economies with weak or inefficient institutions are often replete with structural holes that if filled lead to the expansion of network structures and new intelligence regarding market opportunities. South African companies embarking on an internationalisation strategy into Sub-Saharan Africa could benefit from the insights and experiences of some of South Africa s biggest companies currently investing in the region. This research analyses these experiences and offers contribution to the understanding of how inter-organisational partnerships and employment decisions impact on a company s ability to bridge the structural holes they face in Sub-Saharan Africa. Using a qualitative research process, semi-structured interviews were conducted with eleven senior managers from South African companies. The findings from the research suggests that inter-organisational partnerships and employment decisions, if conducted properly, positively impacts on a company s ability to navigate these structural holes. South African expatriates, deployed as senior managers in the host country operation, are highly valued for their ability to transfer skills and knowledge to the local workforce. However, the knowledge gaps displaye