Cross-cultural management and the informal economy in sub-Saharan Africa: implications for organization, employment and skills development

Abstract

The informal economy has grown in importance within sub-Saharan Africa, yet there are debates about its role within national economies that appear not to take cognizance of the interests and the weak power base of those working within the informal economy. The current article argues that a cross-cultural perspective should be taken in understanding the geopolitical context of informal organizations, the power relationships involved and how the contributions and future of skills development, employment and organization within the informal and wider economies can be better understood and researched. It initially alludes to the informal sector being closer to local communities, and more appropriate to developments in Africa, but draws on postcolonial theory to better understand the nature and role of such organization within an interface of structural and phenomenological influences that question the nature of the ‘indigenous’ as an artefact. Some of the parameters of research in this area are drawn within this work while recognizing that further development is needed in both theory and methods. This article thus attempts to lay the foundations for a cross-cultural conceptual framework leading to a methodology that can inform both practice and policy in this neglected but important area.

Keywords:

• cross-cultural management
• entrepreneurship
• HRM
• informal economy
• skills and employment
• sub-Saharan Africa

Notes

1. However, Adams (2008) warns of the dangers in comparing such statistics across countries because of the different definitions used for informal activities and what is included. For example, Mali includes agricultural employments, which is not included in other countries.

2. Representing work under the ‘hot sun’ in Kiswahili: typically open-air establishments or rudimentary structures for workshops for fabrication or repair, and sometimes selling, as well as basic ‘colleges’ where apprentices acquire their skills.