African Business Research: A Review of Studies Published in the Journal of African Business and a Framework for Enhancing Future Studies

ABSTRACT

The development of Africa depends on productivity and effectiveness of businesses. One objective of the Journal of African Business (JAB) is to facilitate business effectiveness through dissemination of research and practitioner knowledge. Reviewing 96 articles published over a seven year period (2000–2006) published in JAB, the study looked for patterns in the research described (i.e., disciplinary focus, geographic coverage, characteristics of authors, etc). The study also focused on the degree of correspondence (or fit) between Western theory and data provided. Four important findings are: (1) JAB published research from diverse disciplines; (2) there seems to be a bias toward Business rather than Management disciplines, (3) a majority of the research is empirical; and (4) there seems to be a lack of context-specific theories. A proposed framework and implications for future research are discussed.     

Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario

The competition between private label brand and national brands in the diaper category is investigated from the view of the private label brand manager. In this category, new customers routinely enter the category buying entry-level diaper sizes (for infants) and then progress to buy larger diaper sizes over time (as their child grows older). Thus, consumer comparisons between the private label brand and national brands are focused on single diaper sizes during any single purchase scenario. Because private label brands are known to suffer from low quality perceptions that often understate the true quality levels of private label brands, this paper advances a pricing strategy to optimize private label performance in the category. The private label brand should price significantly low for small diaper sizes (maintaining a sizeable price gap from national brand competitors). Then, in most cases, the private label brand should shrink the size of this price gap for large diaper size offerings. This strategy will successfully offer initial value to new customers, build private label brand quality perceptions and loyalty, and then capitalize on these gains through higher dollar sales in the late stages of the customer relationship. The price gap shrinking strategy is found to be generally effective, but high national brand competition and too high of an initial price gap diminish the effectiveness of the strategy.