MNB3701 Assignment 2 Report
Semester 1 with complete solutions 2023
DECLARATION
Note that the portfolio or any part thereof will not be marked if this declaration has
not been completed.
Declaration of own work
I hereby declare that the material which I now submit for this assessment is entirely
my own work and has not been taken from the work of others. Work that was
constructed from other sources has been duly referenced.
Full name and surname:
Student number:
Signature:
(electronic/digital handwritten signature/initial[s] and surname)
Page 2 of 18
,TABLE OF CONTENTS
1. Executive summary ......................................................................................... 4
2. Literature search .............................................................................................. 5
3. Background ..................................................................................................... 6
4. Formal institutional frameworks ....................................................................... 8
4.1. Overview ............................................................................................... 8
4.2. Evaluation of the determinants to the success or failure of an MNE in a
formal institution and key implications for management action of formal
institutions ............................................................................................. 9
5. Informal institutional frameworks ................................................................... 10
5.1. Overview ............................................................................................ 11
5.2. Evaluation of the determinants to the success or failure of an MNE in an
informal institution and key implications for management action of
informal institutions ............................................................................. 13
6. Conclusions ................................................................................................... 16
7. Bibliography ................................................................................................... 17
Page 3 of 18
, EXECUTIVE SUMMARY
This paper will discuss the Multinational Enterprises (MNE’s) as well as the formal and
informal institutions and the frameworks that govern them. A multinational firm or MNE
is an enterprise that engages in foreign direct investment and owns and controls value
adding activities in more than one country (Peng & Meyer 2019).
It typically has multiple facilities across the globe, derives a substantial portion of
revenues from foreign operations, manages subsidiaries with a common strategic
vision and resource pool and often places foreign nationals or expatriates in key
management posts.” (Erwee, 2017: 176).
The paper will continue to evaluate the aspects of the workings of formal and informal
institutions that are key to the success or failure of the MNE, among other things, the
main objective of this report Identify and evaluate the determinants of the success or
failure of operating the MNE in the African context.
Overall, the success and failure of a firm around the globe are, to a large extent, are
determined by its ability to understand and take advantage of the different rules of the
game. In other words, how firms play the game and win (or lose), at least in part,
depends on how the rules are made, enforced, and changed. This calls for firms to
constantly monitor, decode, and adapt to the changing rules of the game in order to
survive and prosper. As a result, such an institution-based view has emerged as a
leading perspective on international business. Here, I focus on formal institutions (such
as political, legal, and economic systems) whereas I will upload an article concerning
informal institutions.
(Hint: Write the executive summary only once you have completed all of the other
required sections of the first report)
Page 4 of 18
Semester 1 with complete solutions 2023
DECLARATION
Note that the portfolio or any part thereof will not be marked if this declaration has
not been completed.
Declaration of own work
I hereby declare that the material which I now submit for this assessment is entirely
my own work and has not been taken from the work of others. Work that was
constructed from other sources has been duly referenced.
Full name and surname:
Student number:
Signature:
(electronic/digital handwritten signature/initial[s] and surname)
Page 2 of 18
,TABLE OF CONTENTS
1. Executive summary ......................................................................................... 4
2. Literature search .............................................................................................. 5
3. Background ..................................................................................................... 6
4. Formal institutional frameworks ....................................................................... 8
4.1. Overview ............................................................................................... 8
4.2. Evaluation of the determinants to the success or failure of an MNE in a
formal institution and key implications for management action of formal
institutions ............................................................................................. 9
5. Informal institutional frameworks ................................................................... 10
5.1. Overview ............................................................................................ 11
5.2. Evaluation of the determinants to the success or failure of an MNE in an
informal institution and key implications for management action of
informal institutions ............................................................................. 13
6. Conclusions ................................................................................................... 16
7. Bibliography ................................................................................................... 17
Page 3 of 18
, EXECUTIVE SUMMARY
This paper will discuss the Multinational Enterprises (MNE’s) as well as the formal and
informal institutions and the frameworks that govern them. A multinational firm or MNE
is an enterprise that engages in foreign direct investment and owns and controls value
adding activities in more than one country (Peng & Meyer 2019).
It typically has multiple facilities across the globe, derives a substantial portion of
revenues from foreign operations, manages subsidiaries with a common strategic
vision and resource pool and often places foreign nationals or expatriates in key
management posts.” (Erwee, 2017: 176).
The paper will continue to evaluate the aspects of the workings of formal and informal
institutions that are key to the success or failure of the MNE, among other things, the
main objective of this report Identify and evaluate the determinants of the success or
failure of operating the MNE in the African context.
Overall, the success and failure of a firm around the globe are, to a large extent, are
determined by its ability to understand and take advantage of the different rules of the
game. In other words, how firms play the game and win (or lose), at least in part,
depends on how the rules are made, enforced, and changed. This calls for firms to
constantly monitor, decode, and adapt to the changing rules of the game in order to
survive and prosper. As a result, such an institution-based view has emerged as a
leading perspective on international business. Here, I focus on formal institutions (such
as political, legal, and economic systems) whereas I will upload an article concerning
informal institutions.
(Hint: Write the executive summary only once you have completed all of the other
required sections of the first report)
Page 4 of 18
