Managing an emerging region : A study of how MNCs manage uncertainty in a Southern African context

Sammanfattning: Title: Managing an emerging region – A study of how MNCs manage uncertainty in a Southern African context Authors: Markus Axelsson & Andreas Olofsson Supervisor: Cecilia Pahlberg Research question: How are Swedish business-to-business MNCs reducing perceived uncertainty when operating in the Southern African Development Community? Purpose: Provide a deeper understanding of how Swedish MNCs from diverse industrial backgrounds are managing uncertainty when operating in the Southern African Development Community (SADC). This study further aims to add to an acknowledged theoretical gap in international business research by providing a contextual contribution towards the Southern African region to the field of internationalization management. Method: A qualitative research method including semi-structured interviews was used to gain in- depth understanding of how Swedish B2B MNCs manages uncertainty within SADC markets. For the analysis, a theoretical framework based on uncertainty management, knowledge and network theory was developed into a conceptual model, carried out when gathering empirical data. Conclusions: The findings suggest that gaining experiential knowledge was vital to reduce perceived uncertainty among Swedish B2B MNCs operating in SADC markets. Experiential knowledge was obtained through operations within the markets, which over time resulted in enhanced market commitments and thereafter increased experiential knowledge. Knowledge was further exclusively shared within networks, where gaining network insidership was essential. To gain network insidership in SADC markets, findings suggest that becoming localized in the market to gain legitimacy is beneficial and achieved over a longer period of time. Finally, findings indicate that South Africa could be used as a gateway into Southern Africa, where firms’ can gain valuable experiences, relationships and an understanding of business practices, which can reduce the perceived uncertainty towards other SADC markets.