Chinese Telecommunications Companies in Ethiopia: The Influences of Host Government Intervention and Inter-firm Competition

Abstract

AbstractThis article examines Chinese engagement in Ethiopia's telecommunications sector. It argues that while theories of developmental state and global production networks contribute important insights on the roles of state agency and inter-firm relations in the rise of global lead firms from East Asia, they are insufficient to interpret the recent overseas ventures of Chinese companies in Africa. A case study of one flagship Chinese telecommunications company in Ethiopia advances the existing literature by highlighting the influences of host government intervention and inter-firm competition in shaping firms’ local operations. Specifically, this article analyses a myriad of changes in the case company's organizational structure and business practices in response to increased market competition administered by the Ethiopian government. Findings reveal that despite benefiting from official inter-state cooperation, Chinese overseas companies are neither static nor merely state-driven players but are flexible in adjusting strategies to improve their competitiveness in the local market.