Abstract
In the Democratic Republic of Congo (DRC), Multinational Enterprises (MNEs) operating in the petroleum industry, and petrol stations, henceforth referred to as Developing Small and Medium Congolese Petroleum Enterprises (DSMCPEs), are recognised as core contributors to economic development and industry advancement. This study aimed to explore the developmental role of MNEs, particularly in their relationship with DSMCPEs. Moreover, the study sought to examine the effect of MNEs in improving infrastructural standards and their assistance in establishing DSMCPEs in Lubumbashi. This study employed a qualitative research design and utilised semi-structured interviews within the interpretivist paradigm. Purposive sampling was pursued until data saturation was achieved with 20 participants, consisting of MNE managerial employees, Congolese petrol station owners, and SEP Congo (petroleum governing body) representatives. Once the interview data were audio-recorded and transcribed verbatim, it was analysed using thematic content analysis for repeated patterns. This generated 49 codes and four themes: (i) developmental partnerships, (ii) management spill-overs, (iii) inter-organisational knowledge spill-overs, and (iv) asset consolidations between key economic operators. The analysis of the findings answered the research question and revealed that the developmental effect of MNEs on Congolese petrol stations occurred through an exchange of information, knowledge, and materials and was motivated by a mutual benefit achievable by cooperation. The analysis revealed that the benefits accrued exceed any financial investments made by the MNEs. Furthermore, it was found that beyond the pecuniary gains resulting from inter-organisational information sharing, the action of sharing was an essential component required for the growth of enterprises in the petroleum industry in the DRC. Consequently, the primary recommendation of this study is that all members operating in this industry adhere to the highest possible standard of communication, product quality, operational efficiency, and transparency at all levels in the industry.
Original language | English |
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Pages (from-to) | 43-70 |
Number of pages | 28 |
Journal | African Journal of Business and Economic Research |
Volume | 18 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Sept 2023 |
Keywords
- Multinational enterprises
- Petroleum industry, Lubumbashi
- Small and medium enterprises
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics