The Strategic Potential of Community-Based Hybrid Models: The Case of Global Business Services in Africa

Global Strategy Journal, 2017, Forthcoming.

48 Pages Posted: 1 Nov 2016 Last revised: 8 Jan 2017

Stephan Manning

University of Massachusetts at Boston - College of Management

Chacko G. Kannothra

University of Massachusetts Boston - College of Management

Nichole Wissman-Weber

University of Massachusetts Boston

Date Written: November 1, 2016

Abstract

As a latecomer economy, Africa faces persistent difficulties with catching up in global markets. This study examines the strategic potential of community-based hybrid models, which balance market profitability with social impact in local communities. Focusing on the global business services industry in Kenya and South Africa, and the practice of ‘impact sourcing’ – hiring and training of disadvantaged staff servicing business clients – we find that while regular providers struggle to compete with global peers, hybrid model adopters manage to access underutilized labor pools through community organizations, and target less competitive niche client markets. We further identify key industry, institutional and firm-level factors that affect hybrid model adoption. Findings have important implications for research on catch-processes in latecomer economies, hybrid models and global business services.

Keywords: Outsourcing, Sub-Saharan Africa, impact sourcing, hybrid organizations, local communities

JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L84, O14, R11, P45, P48, F59, F21, F22, F23

Suggested Citation

Manning, Stephan and Kannothra, Chacko G. and Wissman-Weber, Nichole, The Strategic Potential of Community-Based Hybrid Models: The Case of Global Business Services in Africa (November 1, 2016). Global Strategy Journal, 2017, Forthcoming.. Available at SSRN: https://ssrn.com/abstract=2862174

Stephan Manning (Contact Author)

University of Massachusetts at Boston - College of Management ( email )

100 Morrissey Blvd
Boston, MA 02125
United States

Chacko George Kannothra

University of Massachusetts Boston - College of Management ( email )

Boston, MA
United States

Nichole Wissman-Weber

University of Massachusetts Boston ( email )

100 William T Morrissey Blvd
Boston, MA 02125
United States

Paper statistics

Downloads
25
Abstract Views
122