Divergent Responses to Institutional Voids: EMNE and MNE strategies in Uganda’s electricity industry

The paper investigates the divergent approaches to institutional voids by EMNEs and advanced country MNEs entering a fast-growing Sub-Saharan African market. Using an exploratory, qualitative multi-case study research approach, the study captures and analyses evidence from Uganda’s liberalised electricity generation sub-sector. The methods of data collection primarily constitute semi-structured interviews and archival materials while data analysis is applied through an interpretation of thematic analysis enhanced by NVivo-based coding. The findings point to behaviour of EMNEs that is reflective of a deeper understanding of the political, socio-economic and institutional dynamics of the host country than of advanced country MNEs. There are hence opportunities for EMNEs to not only creatively by-pass institutional voids, but also to substantially contribute to favourably shaping emerging institutional features. The emergence may thereby be taking a direction that departs from assumptions in extant literature. Ultimately, the paper argues that the observed nonmarket strategy not only benefits these firms under current circumstances, but it also prepares them for new market entries in a deepening of their internationalization.