Firm foreign-ownership structure and organizational resilience: insights from a multi-country analysis of African firms

This paper examines the influence of the ownership structure of foreign-owned firms in dealing with adversities in a cross-national sample of sub-Saharan African firms. We found evidence that a firm’s foreign-ownership... [ view full abstract ]

This paper examines the influence of the ownership structure of foreign-owned firms in dealing with adversities in a cross-national sample of sub-Saharan African firms. We found evidence that a firm’s foreign-ownership structure is associated with higher performance when it is pursuing a direct export strategy. The study contributes to showing that firms with a foreign-ownership structure are more likely to better build structural flexibility and redundancy, secure slack resources, and formulate and implement strategies to overcome the impact of adversities in their environment. The study also provides insights intended to strengthen the relation between corporate governance and organizational resilience. The mechanisms, processes, and cross-functional/external relations found at foreign-owned firms enable them to set objectives and pursue strategies that provide stability in the contextual environments.