DefinePK

Abstract

This systematic review makes the case for internationalization in Africa, covering the economic motives, the socio-political challenges, operational barriers, and adaptation strategies. The review, in this respect, synthesizes findings from a myriad of empirical studies to the effect that pursuit of natural resources, market expansion, and diversification remain the major drivers of Chinese investment in Africa. Despite these motivations, the Chinese businesses face a number of challenges, including cultural differences, regulatory complexities, problems in governance, and operation difficulties both in infrastructure and human resources. Adaptation strategies through localization, CSR, and strategic partnerships were implemented to counterbalance such challenges and ensure effectiveness in business. In its review, it has managed to corral some empirical evidence together with theoretical frameworks that identify the dimensions of business relations between China and Africa, from Dunning's Eclectic Paradigm and Institutional Theory to the Resource-Based View. Its findings offer very useful knowledge for both academics and practitioners in an attempt to navigate and leverage opportunities and challenges of international business in an African context.
Keywords: Internationalisation, Chinese Companies, Africa, Economic Motivations, Adaptation Strategies.