Contextualizing Strategic Management Theory for African Enterprises: Institutional Realities, Resource Constraints, and Local Adaptation

Abstract

This paper advances a locally grounded approach to understanding strategic management practices in African firms. The forces of globalization and the internationalization of markets have significantly reshaped the economic landscape of African countries, positioning the private sector as a central driver of wealth creation. Within this context, business restructuring and privatization initiatives have emerged as key components of economic transformation. Concurrently, the adoption of new management practices, strategic concepts, and analytical tools has become increasingly influential in shaping firm performance. These developments raise a critical question regarding the applicability of classical management theories and strategic frameworks largely developed in Western contexts to African business environments. Drawing on four case studies, the study examines the relevance of three dominant strategic perspectives: the institutional perspective, transaction cost economics, and the resource-based view. The findings indicate that while these perspectives offer valuable analytical insights, their explanatory and practical power is limited when applied without contextual adaptation. The paper concludes that integrating a local perspective accounting for institutional realities, socio-cultural dynamics, and structural constraints is essential for enhancing the strategic effectiveness and competitiveness of African firms