This book places special focus on the importance of trust building, particularly in economies where formal legal arrangements are lacking. Taking the case of Africa, the author provides a framework of how indigenous institutions specify and define the rules, thereby allowing entrepreneurship to thrive. In particular, the book delves into the distinct evidence of institutional rivalry within Africa where competing institutions co-exist, leading to the emergence of dominant hybrid institutional forms. By placing enforcements at the heart of the issue, the author makes a convincing case for trust in a range of indigenous institutional arrangements.
Based on an investigation of entrepreneurs operating across West Africa, the book explores how indigenous arrangements are sufficient in enforcing credible commitments to agreements. In the process, the author argues that trust is essential in stimulating entrepreneurial incentives in Africa. The book brings the real-world situation of local actors in live situations that almost every African entrepreneur can identify with. In a bold new step, the book attempts to show how African entrepreneurs have been able to respond to the specific socio-economic challenges of their environment and raises questions about the role of alternative indigenous institutions. For those interested in African studies, the book’s chapters and readings capture fresh insights and renewed enthusiasm for African entrepreneurship.
Author(s): Kingsley Obi Omeihe
Series: Palgrave Studies of Entrepreneurship in Africa
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 179
City: Cham
Foreword
Preface
Praise for Trust and Market Institutions in Africa
Contents
About the Author
List of Figures
List of Tables
1: An Overview of Trust, Institutions and African Entrepreneurial Networks
1.1 Introduction
1.2 Overview of African Entrepreneurship and Trust
1.3 Motivation
1.4 Context, Entrepreneurial Networks and Trust
1.5 Uncovering Embeddedness and Institutional Logics
1.6 Methodological Approach
1.7 Case Study: The Aspect of Reflexivity
1.8 The Structure of the Book
References
2: Unravelling the Concepts of Institutions and Entrepreneurial Networks
2.1 Introduction
2.2 The Topicality of Institutions
2.3 Institutions and Entrepreneurship
2.4 Culture and Informal Institutions
2.5 Norms and Entrepreneurship
2.6 Social Networks and Entrepreneurship
2.7 Social Networks and Entrepreneurship in Africa
2.8 Entrepreneurship and Small Business
Expanding the Concept of Entrepreneurship
Schumpeterian and Kirznerian Perspectives
SME Networks and Entrepreneurship in Africa
Institutions and African Entrepreneurship
2.9 Conclusions
References
3: Exploring the Nature of Trust in Inter-organisational Relationships
3.1 Introduction
3.2 What Is Trust? Exploring the Nature of Trust
3.3 Case Study: The Various Interpretations of Trust
3.4 Unravelling Trust and Context
3.5 Trust and Transaction Costs Economics
Expanding on Trust and Opportunism
3.6 Types of Trust
Personal Trust
Institutional Trust
Inter-organisational Trust
Institutional Trust in Africa
3.7 Distrust
3.8 Trust Repair
3.9 Conclusion
References
4: Institutions Shaping Trust in African Entrepreneurship
4.1 Introduction
4.2 Colonial Era and West African Entrepreneurship
4.3 Indigenous Social and Economic Structures (1860–1900)
4.4 Socio-cultural Factors and African Entrepreneurship
4.5 Case Study: West African Entrepreneurial Networks
4.6 Weak Formal Institutions in West Africa
4.7 Indigenous African Institutions
Family and Kinship
4.8 Conclusion
References
5: Managing Trust in African Entrepreneurship
5.1 Introduction
5.2 Personal Trust in Africa
Trust Based on Working Relationships
Trust Based on Transites or Central Men
5.3 Institutional Trust in Africa
Trade Associations as Indigenous Alternative Institutions
Cultural Norms of Family/Kinship, Ethnicity and Religion
5.4 Case Study: The Functions of African Trade Associations
5.5 Conclusion
References
6: The Dynamics of Trustworthiness, Distrust and Repair in African Entrepreneurship
6.1 Introduction
6.2 Distrust in African Entrepreneurship
6.3 Distrust Based on Family and Religious Norms
6.4 Trust Repair in African Entrepreneurship
Verbal Explanations in African Entrepreneurship
Apologies in African Entrepreneurship
Use of Intermediaries in African Entrepreneurship
The Use of Threats
6.5 Case Study: Verbal Explanations as a Trust Repair Tactic
6.6 Conclusion
References
7: Core Insights, Reconnecting Trust Expectations in African Entrepreneurship
7.1 Introduction
Institutions that Influence Entrepreneurship in Africa
Types of Trust Required for Entrepreneurial Relationships
Trustworthiness in African Entrepreneurship
Distrust in African Entrepreneurship
Trust Repair in African Entrepreneurship
7.2 A Framework for Understanding Trust in African Entrepreneurship
7.3 Theoretical Contributions
7.4 Practical Implications
7.5 Policy Implications
References
Index
