Making room for sub-Saharan Africa: Forbivalence and the assets and liabilities of foreignness

Abstract

Sub-Saharan African states have underdeveloped economic infrastructures and recognize their need for and thus welcome foreign expertise, investment, and resources. However, at the same time a history of colonization increases each state’s national identity and gives them reason to be less welcoming to foreign status and direction. When considered in an organization context, this ambivalence towards foreignness – or what we term forbivalence – has implications for firm performance, and thus makes important the fundamental firm characteristics of foreignness and domesticity. Yet, scant studies address these factors in such a context, particularly how they interact with different levels of volatility, nationalism, and resource need, all contextually important moderating influences. Considering economical, historical and limited resource implications from a unique context, our study conceptualizes the relationship between firm foreignness and firm performance across sub-Saharan African nations. In addition, we extend understanding of the liabilities and assets of foreignness and emphasize the importance of understanding the context. The model provides new insights about the implications of forbivalence and firm foreignness within the sub-Saharan African context.