Multinational Corporations and Service Provision in Sub-Saharan Africa: Legitimacy and Institutionalization Matter

Jana Hoenke, Christian R. Thauer

Research output: Contribution to journalArticlepeer-review

Abstract

This paper considers attempts by multinational corporations to provide services in areas where the state fails to do so. Under which conditions are such attempts effective? This paper makes two arguments: firstly, they must be legitimate to be effective. Secondly, the institutional design of the firms’ service provision programs is an important factor for their effectiveness. We assess these arguments by analyzing multinationals in the South African car industry fighting HIV/AIDS, and international mining firms in South Africa and the Democratic Republic of Congo trying to improve public security. The analysis demonstrates that under conditions of legitimacy and high degrees of institutionalization firm programs effectively contribute to service provision in areas of limited statehood.
Original languageEnglish
Pages (from-to)697-716
Number of pages20
JournalGovernance
Volume27
Issue number4
Early online date6 Jan 2014
DOIs
Publication statusPublished - Oct 2014

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