Navigating Institutional Differences in Africa: Moving Beyond the Institutional Voids Perspective

Abstract

Institutions matter and play a critical role in the function of markets and society as a whole, in developed economies, as well as in emerging and developing economies. There are, however, observed differences in the characteristics, operations, and maturity of institutions across economy types. We draw on qualitative evidence from six advanced economy (AMNE) and emerging economy MNEs (EMNE) operating in Uganda and quantitative evidence from fifteen South African EMNEs operating across Africa to argue that the wide-scale reality of institutional environments that differ from those in the developed West should not necessarily imply institutional voids.