Emerging markets such as in Asia and South America continue to attract Canadian businesses and investment. A new study led by A.J. Corner from the University of Ottawa’s Telfer School of Management identifies three context-specific competencies required for leaders and employees to succeed in multinational companies operating in these markets.

In recent decades, emerging markets have become appealing to many companies seeking to expand internationally and to employ culturally diverse talent. Canada has been at the forefront of this internationalization trend.

This gives Canada an edge. “There are opportunities for Canadian organizations to deploy and develop the right skills in emerging markets and to recruit and integrate employees with experience in those countries,” says A.J. Corner, Telfer School of Management assistant professor of organizational behaviour and human resource management.

The context of emerging markets

The federal government’s State of Trade 2021 reports that the number of Canadian multinationals increased by almost 30% between 2010 and 2018. Many of these businesses are investing in emerging economies. For example, half of the top 10 countries with Canadian mining assets are in Central and South America, including Chile, Panama and Brazil.

In a study published in International Business Review, Corner and co-authors have observed several contextual factors that create specific demands for human capital in multinationals operating in emerging markets:

• Emerging markets are often shaped by rapid but volatile economic growth and political developments.
• Their formal institutional structures, such as the legal system and regulatory frameworks, can be fragile, pushing individuals to rely on informal networks and rules.
• Social embeddedness and in-group relationships are particularly important.
• People who live in emerging markets are typically more accustomed to hierarchical structures than those from developed countries, with a lesser focus on gender and social equality.
• People in emerging markets are generally deeply integrated in the local environment and respectful of norms and traditions.

Recruiting, developing and leading talent for these multinational companies can be complex. A Canadian employee or supervisor working in a multinational company in Santiago, Chile will encounter unfamiliar values, opinions and approaches to work. The researchers suggest that multinational leaders need to develop three competencies: recognizing perspectives, managing relationships and navigating uncertainty.

Recognizing perspectives

Given the unique characteristics of emerging markets, Canadian managers first need to recognize their differences from developed markets. But it’s not enough to simply understand these cross-cultural differences.

“You should demonstrate cultural sensitivity, develop the ability to appreciate others’ viewpoints and find a shared understanding between two cultures. Such a strategy can help to reduce the negative impact of cultural distance,” says Corner.

Managing relationships

The emphasis on informal rules, local norms and social ties makes relationship-building an essential workplace skill in emerging markets. Through professional relationships, leaders can gain access to valuable information and connections. Otherwise, one’s actions can lead to misunderstanding and conflict.

For instance, a Canadian manager used to following a formal system for social interactions may not understand why clients, partners and colleagues in Brazil rely on a social influence strategy called jeitinho (finding a way to get things done, even if by bending the rules) to close a business deal.

Navigating uncertainty

Due to unstable economic growth and change, uncertainty is likely to be higher in emerging markets. Those working in this environment must cope with fast-paced, unpredictable circumstances. Thus, adaptability is a great asset for leaders of multinationals managing talent.

Recommendations for professionals and leaders

In today’s globalized business environment, the three competencies identified in the study can benefit professionals who interact with colleagues, partners, suppliers and customers from emerging markets.

“People who work on developing a global mindset will generally find it easier and more enjoyable to work overseas and in the diverse, international teams that characterize the modern workplace,” says Corner.

Corner has these recommendations for those working in multinationals abroad:

• Strive to improve your cross-cultural skills and develop a more global mindset.
• Focus on being accepting and non-judgmental of different cultures and perspectives, even in stressful or unfamiliar situations. 
• Seek opportunities to gain global experience in emerging countries, such as study abroad programs, internships and client visits.
• Reflect on your existing competencies and development needs before, during and after international experiences.

Corner also has these recommendations for leaders of multinationals:

• Consider unique cultural perspectives in your decision-making and interactions. Otherwise, your actions may be ineffective.
• Design recruitment and selection policies and procedures that reflect the contextual demands of emerging markets, such as using context-specific competencies as key performance indicators.
• Select managers with experience in other emerging markets, as they are more likely to have developed the needed competencies.
• Tailor training programs towards understanding target markets and developing competencies specific to their culture.
• Leverage the competencies and experience gained in emerging markets when employees return to Canada. (It is worth noting that according to the 2020 Annual Report to Parliament on Immigration, 26% of Canada’s workforce are immigrants.) This can increase retention of valuable human resources and institutional knowledge.

Read the study

Corner, A.J., Liu, L.A. and Bird, A.W. 2021. “Intercultural Competencies for Emerging Markets: A Contextualized Approach.” International Business Review.

By Lidiane Cunha

A. J. Corner's research interests are centered on workplace interpersonal relationships, particularly with regard to their underlying social exchange processes. Learn more about his work.

Like many other continents, Africa has been devastated by the COVID-19 pandemic and its economic recovery will be a challenge. Even before COVID-19, project failure rate was high in French-speaking Africa. Professor Lavagnon Ika has been awarded a Social Sciences and Humanities Research Council Insight Grant to study the role that context (economic, political, socio-cultural, institutional, and managerial) plays in project performance in French-speaking Africa. He will consider the perspective of various stakeholders to try to understand how context contributes to project success or failure. 

Project title: Le rôle du contexte dans les projets en Afrique [The role context plays in projects in Africa]

We asked Professor Ika why he is personally interested in this research area. “Born and raised in Benin (West Africa), my exposure to gloom and doom in projects began at home: unfinished projects, time and cost overruns, 'white elephants', stakeholder disappointment, and beneficiaries left in dismay. Yet, under similar circumstances, other projects do succeed in Africa. Thus, I have always wondered what role context plays in both project performance and underperformance.”

The role of context in project success or failure

According to the World Bank, sub-Saharan Africa is a prime region of the world for future economic and social development. Billions of dollars are invested in Africa on international development projects and other locally funded initiatives. These funds are earmarked for projects such as large-scale community improvement, resilient infrastructure, rural mobility, public sector reform, and access to renewable energy. However, it seems that funding the project isn’t always the challenge in Africa: rather, when money is available, it is not always being spent on the intended project.

As discussed in a McKinsey article entitled Solving Africa’s Infrastructure Paradox, which clearly presents project failure rates in Africa, the problem is not finding the investment, but rather “our research shows that most infrastructure projects in Africa fail to reach financial close: less than 10% of projects achieve this milestone, and 80% of projects fail at the feasibility and business-plan stage.” Professor Ika’s research has shown that more than 50% of projects of different types – infrastructure or capacity building – fail to meet benefit, stakeholder, or beneficiary expectations for different reasons, including failure to appreciate context. Read more about some of these reasons in Four Reasons Why Projects Fail in Africa.

Clearly, context can have a major impact on whether a project succeeds or fails. The influence of economic, political, legal, socio-cultural, institutional, managerial circumstances, along with many other layers of context, is undeniable, but their role in project performance is not clear. in a In a previous study, Professor Ika examined the circumstances that occur in advance or in the wake of the project, while his latest work will help understand the contextual challenges that lead to project success or failure in French-speaking African countries like Benin, Ivory Coast, and Senegal. He will interview various stakeholders from 12 major projects, including project supervisors, managers, technical experts, and funders, to gain an understanding of how, and to what extent, different contexts are involved in project performance, both in terms of project management and (economic and social) development, and whether these projects are funded nationally or internationally.

“It is time to go beyond the proverbial appreciation that “context matters” and examine different layers of context and how they combine over time to influence project performance and underperformance in Francophone Africa, where socio-political complexity tends to be very high,” adds Professor Ika.

Improving project management practices and sustainable development in Africa

This work will add knowledge to project management theory, shedding light on the role various contexts may play over time in project success or failure in French-speaking Africa. The knowledge gained can guide policymakers and practitioners, providing them with a better appreciation of the overall African context, its dynamic nature, and its influence on project performance. From a practical perspective, this knowledge can help all stakeholders improve project management practices and promote sustainable development success in Africa.

By Rania Nasrallah-Massaad

 

Lavagnon Ika is Full Professor of Project Management (PM), former Program Director for the MSc in Management, Faculty Leader for uOttawa partnerships with African Universities, and Founding Director of the Major Projects Observatory at the Telfer School of Management (uOttawa).   Read more about his work.

Researchers from the University of Ottawa and McGill University have partnered with Canada’s leading food and beverage manufacturing associations and industry partner Bivizio to develop a digital platform that will strengthen the connection between industry and supply chain, increase economic viability in the food sector and maintain food security for Canadian consumers.

A partnership between research and industry

Canada’s agri-food system has been seeking ways to implement digital technologies and innovate business operations, logistics and communications, which can ultimately connect food and beverage retailers and their supply chains. But fostering innovation, connectivity and collaboration in Canada’s agri-food system requires both research and industry insights to develop a resilient digital backbone.

It is precisely for this reason that a team of researchers and industry partners have joined forces to launch the Food Convergence and Innovation—Canada project. Its main goal is to build a provincial and regional platform to connect Canada’s food and beverage manufacturers to suppliers and customers across the country. The project will be funded by Protein Industries Canada and Mitacs. The total value of the combined research project will be over $3 million.

The University of Ottawa will contribute to the development of the platform through Sandra Schillo’s leading research on inclusive enterprise and systems innovation. Schillo is an associate professor of digital transformation at the Telfer School of Management. As part of the project, Schillo is leading a multidisciplinary team of 20 students from the University of Ottawa, McGill University, the Université du Quebec à Montréal, the Université de Montreal and Dawson College who are collecting public web data to map the food and beverage sector and developing new indicators of value to these businesses.

Going digital to foster connectivity from coast to coast

To build the digital platform, the team will develop the data and features required to connect key stakeholders in Canada’s agri-food ecosystem, including food and beverage associations, businesses, and consumers and to improve their access to information. For instance, the platform will allow food and beverage companies to post and search for specific products, services and partners within a given geographical area.

“This digital platform will help connect the value chain across the country, from ingredient processors in the east to food manufacturers on the west coast,” says Bill Greuel, Protein Industries Canada CEO.

“The platform will also support structural changes that can sustain economic viability and competitiveness of Canada’ agri-food system and increase food security for Canadian consumers,” adds Schillo.

Engaging and training students

The project is also offering emerging researchers like doctoral student Hassan Ebrahimi and MSc student Ye Zhu a great opportunity to address timely challenges while gaining data science skills that will enrich their professional experience. As graduate students in the Digital Transformation and Innovation program at Telfer, Hassan and Ye are excited about making a difference through research and collaborating with food and beverage associations and government advisers.

Hassan enjoys working with such a multidisciplinary team of researchers and industry partners that aims to have a bigger impact on the food and beverage ecosystem. “These collaborations help me better understand the specific needs and interests of the food and beverage supply chain, value chain, food service providers and other stakeholders in the broader ecosystem.” By mapping these stakeholders, Hassan is ensuring that these industry voices are included in the framework of the project and reflected on the digital platform.

Ye’s role in the project is to find out how companies have responded to COVID-19 challenges on social media and how the public has reacted to corporate responses. To do so, she is using web and Twitter “scraping,” a process of extracting data on social media. This experience is also giving Ye a competitive edge:

“I am aiming for a career in data science, and this project gives me a chance to develop the skills and knowledge needed to work with large datasets,” says Ye.

Learn more about the project:

The researchers will identify and engage members of the agri-food ecosystem in Canada. Learn how you can contribute to the project.

 Sandra Schillo is an associate professor at the Telfer School of Management and leads the Inclusive Innovation Research Cluster at the Institute of Science, Society and Policy at the University of Ottawa. Her team employs data science methods to gain new insights into innovation and entrepreneurship, including in the food and beverage sector. Learn more about Schillo’s work.

When addressing human suffering, social injustices or environmental damage, many activist groups have criticized how we understand the idea of profit. They have traditionally “reframed” profit to offer a broader view, raise awareness, and provoke emotional reactions that can lead to positive actions and a more just world.

Darlene Himick, an associate professor at the University of Ottawa’s Telfer School of Management, examines how activists are redefining profit and using “counter discourses” as tools of resistance. Now she is studying the fossil fuel divestment movement, where activists are questioning what profitable investments are and arguing that profitability need not take precedence over environmental sustainability.

Changing the profit narrative

In accounting, “profit” has a particular technical meaning, but the term is also used every day in a non-technical sense, including by those challenging institutions. “Many may think that simply because everyday people don’t have a background in finance or accounting, they can’t resist powerful financial and corporate interests,” says Himick.

A 2020 study led by Himick and Kate Ruff (Carleton University) found, for instance, that activists without prior knowledge of accounting ignored technical concepts and used more relatable, everyday meanings of profit to better reach the public. They also added to profit calculation some costs not usually in the “frame.”

For example, in the 1990s, activists tried to ban commercial seal hunting by vividly describing injury and harm to seals, using shocking images that connected the public to the distant seals. Highlighting the cost of animal suffering threatened industry revenues and profitability, thus challenging notions of the bottom line and offering activists a strategy for change.

Greener investment on the rise

Himick’s new research suggests that the fossil fuel divestment movement is similarly questioning the notion of profit. Student activists and faculty members at universities, church members and people from all walks of life are taking on financial interests without having a financial background themselves.

Himick has been tracking the impact of the divestment movement worldwide. The movement gained momentum in 2010 with a series of on-campus pushes to shift universities and colleges away from investing in fossil fuel-related stocks, bonds or funds.

Like activists in other settings, the fossil fuel divestment movement is adding moral and ethical issues to the notion of investment returns. “They are making the bold claim that it is not OK to invest and profit from those investments in industries or companies that contribute in significant ways to climate change and environmental impacts,” says Himick.

But she goes further: “These activists are also adopting the language of finance, arguing that it is financially risky to continue to invest in this way. In doing so, fossil fuel divestment activists blend their non-financial backgrounds with financial concepts in creative and impactful ways.”

This impact can’t be ignored. In 2018, over 1,000 institutions, with investments worth almost $8 trillion, committed to divesting from fossil fuel, coal and gas companies. Today, the movement reports that over 1,300 institutions, with investments worth over $14 trillion, have made some form of divestment commitment.

Himick and her team are currently looking at how institutions follow through on their divestment commitments and how their funds are then diverted towards green technologies or companies.

Universities joining the divestment movement

In Canada, the fossil fuel divestment movement has gained important allies, with students pressuring universities into making sustainable investments. A recent article on Canadian universities and fossil fuel divestment reported that eight have already committed to full or partial divestment. As well, the University Network for Investor Engagement, a coalition of Canadian universities, recently announced that it will engage with companies in members’ investment portfolio to address climate change risks.

Himick and the research team found that organizations that choose to divest or change their approach to investing sometimes even credit the work of these movements. For example, Cardiff University’s announcement that it was ceasing investment in fossil fuels cited the “concerns of students and staff” over its current investment policies.

“Some often argue that these movements make no real difference, but the engagement in this issue of university students and faculty should not be downplayed here,” says Himick.

This research project is supported by the Social Sciences and Humanities Research Council.

By Lidiane Cunha

Darlene Himick is an associate professor of accounting at the University of Ottawa’s Telfer School of Management. Her research focuses on pension accounting, responsible investing by pension funds, and the use of experts during standard setting. Learn more about Himick’s research.