Abstract
Multinational enterprises (MNEs) are enterprises operating in more than one country. These organisations can function in various industries, providing a variety of products and services. Globally, a trend has emerged where MNEs are in search of new opportunities in other countries. By pursuing new opportunities in other countries, MNEs operations exert some social, economic and political influences on these countries and their respective businesses. In the Democratic Republic of Congo (DRC), MNEs and Small and medium enterprises (SMEs) operating in the petroleum industry are recognised as core contributors to economic development and progress in the industry.
While there are studies on multinational partnerships’ impact on the DRC’s economic growth and progress, there is scant research on the growth of independent Congolese petrol stations within multinational partnerships. This study aimed to explore debates on the role of a multinational petroleum in the development of Congolese petrol stations. The study was based on the conceptual framework which aims at exploring the positive and negative effects of MNEs’ partnerships in developing economies.
Accordingly, an exploratory case study was presented to elaborate on the positive, adverse, and mixed effects on the role of multinational petroleum enterprises in developing economies’ small and medium enterprises. Data was collected using semi-structured interviews with a sample of 20 participants operating in Lubumbashi’s petroleum industry. Three key groups were interviewed: Group A managerial employees at a MNE in Lubumbashi, Group B managers at Congolese petrol stations and Group C managerial employees at SEP Congo in Lubumbashi. The data was analysed using thematic content analysis.
The findings revealed underlying environmental, economic, infrastructural, and political challenges that hinder developments in Lubumbashi’s petroleum industry. Through developmental partnerships in the industry, these challenges can be significantly reduced. These partnerships are focused on ensuring the effective management of existing systems and communication channels, safeguarding an inter-organisational knowledge and training spill-over. Additionally, ensuring that these partnerships through
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asset consolidation will rebuild critical infrastructures within Lubumbashi’s petroleum industry. Developmental partnerships are enablers of knowledge transfer and growth, which can contribute to fostering progress in Lubumbashi’s petroleum industry.
The findings were valuable because they expanded existing knowledge on the challenges in emerging economies while understanding the role and impact of MNEs in these economies. The discovery made on the role of a multinational petroleum enterprise in the development of Congolese petrol stations contributed to the importance of MNEs in facilitating the flow of information, processes and knowledge transfer.
It was recommended that administratively, an industry forecast of fuel demand and supply needs to be established to avoid shortfalls in depots, stations and price speculations from independent importers. Regarding policy compliance it was proposed that all the industry operators, ensure that their organisations adhere to the laws and regulations of the industry. Operationally, it was suggested that employees at all levels be equipped with industry knowledge in safety, security, maintenance, and quality customer service delivery.
Keywords: Multinational enterprises, Small and medium enterprises, developing economies, Foreign direct investment, positive impact, negative impact.