Africa as a source location: literature review and implications

Abstract

Purpose – The purpose of this paper is to explore the scope of sourcing research in Sub-Sahara African (SSA) from scholarly journals published from 1980 to 2013 on sourcing-related issues. The study identifies what is known about sourcing from this region and the implications for managers and researchers in supply chain management. Design/methodology/approach – Totally, 40 scholarly journals (supply chain journals and other journals publishing on diverse business topics) were found relevant and reviewed. Content (all field) search using the names of each SSA countries (e.g. Nigeria, South Africa, Ghana, etc.) was carried out in the supply chain journals to filter out articles discussing sourcing-related topics. For other business journals, keyword search was performed (procurement, sourcing, purchasing, outsourcing, supplier relations, supplier selection, supplier development, supply management, offshore, supply chain and logistics). Findings – The literature review suggests that studies discussing sourcing issues in SSA have focussed mainly on challenges of sourcing from SSA, and they provide some insights on implementation of supply chain tools such as total quality management, negotiating and selecting suppliers from SSA, and just-in time purchasing. However, the authors found that there is an under-representation of this region in supply chain management literature. More so, the articles discussing sourcing issues in Africa are limited in scope empirically and theoretically in comparison with the large amount of contributions in other emerging economies of Asia and developed economies. Research limitations/implications – The limited amount of publications and contributions does not allow us to provide an integrated framework for sourcing from SSA. Practical implications – There is a need for future research to explore how the SSA context could enhance theorizing in supply chains. Also, there is need for researchers to extend the sourcing debate from the over emphasis on technology sourcing, knowledge intensive service outsourcing and component sourcing to other lower value-added products such as agricultural products and other raw materials sourced in SSA. Originality/value – This paper is one of the first to explore the scope of sourcing in Africa. As the findings suggest, there have been limited amount of papers published about this region. The review provides a perspective for researchers to explore this region and to aid theory development in supply chains. It also provided implications on how to support research publication focussing on this region and how to inform managerial perceptions on sourcing from SSA.

Sourcing from Africa: A Systematic Review and a Research Agenda

“…To ensure a wider coverage, we decided to search in several reliable databases rather than to focus on individual journals, which is in line with our multidisciplinary approach. A recent review was published in the field of international business, covering sourcing and logistics in Africa (Nnamdi and Owusu ). However, as it included only a selection of journals and focused on sub‐Saharan countries, it yielded a much more limited sample of articles and discussion than in this study.…”

“…; Pazirandeh and Norrman ), and the African continent, in particular, is still in the nascent stage in terms of supply research. We identified important gaps in knowledge building in this area (Nnamdi and Owusu ): studies investigate agricultural products, for instance (Otchere et al . ; Ouma ), tending to ignore other sectors, and (African) scholars focus on public procurement and pay less attention to the private sector (Akenroye et al .…”

Place Images and Nation Branding in the African Context: Challenges, Opportunities, and Questions for Policy and Research

“…Similarly, Bartels, Napolitano, and Tissi (2014) note that SSA still lags behind DCs in other regions, and that attracting higher levels of FDI calls for a concerted focus on advancing labour skill levels and improving institutional arrangements. Foreign countries' presence in African countries is also due to the increase of international outsourcing; where and when to outsource is the actual challenge for many companies (Hatoten & Ericksson, 2009), and while most African countries still rank low in attributes relevant to outsourcing decisions (Nnamdi & Owusu, 2014), there are signs of increasing activity in this area toward SSA countries such as Ghana, South Africa, and Senegal (SourcingLine.com, 2011).…”

“…While lower labour costs and the availability of resources are key drivers in this trend, improved manufacturing capacity, know-how, and infrastructure are significant contributing factors (Nnamdi & Owusu, 2014). In addition to other benefits, emerging globalization opportunities such as this are generating new prospects for Africa's structural transformation (AfDB et al, 2013).…”

“…Google and Facebook have also been mentioned as firms that recognize the emerging "culture of innovation" in East Africa's "Silicon Savannah" (Olopade 2014). Such activity is, of course, closely related to the motives that lead firms to consider Africa for FDI, which may range from resource seeking to a search for lower labour costs and/or outsourcing locations (Nnamdi & Owusu, 2014), capitalizing on liberalized conditions in Africa's export processing zones (e.g., Kinunda-Rutashobya, 2003), and, of course, the need for a local presence to service domestic African markets.…”