Abstract:
This research posits that tacit knowledge, explicit knowledge and hubris influence
the decision-making process of managers when deciding to enter an emerging
market. The literature on emergent market strategy and the decision-making process
is abundant but tends to focus on the extant explicit information available. However,
the prevalence of literature on the influence of tacit knowledge or experience needs
to be further developed. Given the focus on Africa as an area for economic
development and the complexity that comes with doing business in Africa, this study
seeks to explore what homage is given to tacit knowledge and experience by strategy
makers during the process of strategy development, how this knowledge is
harboured and developed. The study also seeks to explore the transferability of the
knowledge between countries, and if this knowledge can become an inhibitor in
developing strategy.
A review of the relevant literature is undertaken and a model is developed to map out
this decision-making process. A qualitative tool is developed and eight interviews
with managers responsible for emergent market strategy development are held to
obtain an understanding of how tacit knowledge and explicit knowledge feature on
the decision-making process.
Key learnings from the study includes a disparity between literature on the
importance of tacit knowledge and the growing tendency to formalise the country
entry process; the prevalence of heuristics and hubris in the decision-making
process, and absence of a review process to validate strategies and decision making.
