IDEAS home Printed from https://ideas.repec.org/a/ibn/ibrjnl/v19y2026i3p84.html

Endogenous Financing and the Attractiveness of FDI: Levers for Sustainable Governance of Local Development Projects in Africa

Author

Listed:
  • Élie Ndjeder
  • Victor Mignenan

Abstract

In an African context marked by the intensification of foreign direct investment (FDI) and a persistent dependence on exogenous financing, this study analyzes the joint role of endogenous financing and the attractiveness of FDI in the sustainable governance of local development projects. As part of an integrated approach to the territorial economy and public governance, the article postulates that territorial performance depends less on the volume of capital mobilized than on the institutional quality of its use. The research is based on a conceptual model of hybrid governance articulating endogenous financing, FDI, sustainable governance, institutional maturity, and territorial performance. A sequential mixed-methods approach is used, combining a quantitative survey of 325 territorial actors in Central Africa, analysed using structural equation modelling (PLS-SEM), with 32 in-depth qualitative interviews. The results show that endogenous financing has a positive and significant effect on sustainable governance (β = 0.41; p

Suggested Citation

  • Élie Ndjeder & Victor Mignenan, 2026. "Endogenous Financing and the Attractiveness of FDI: Levers for Sustainable Governance of Local Development Projects in Africa," International Business Research, Canadian Center of Science and Education, vol. 19(3), pages 1-84, June.
    • Handle: RePEc:ibn:ibrjnl:v:19:y:2026:i:3:p:84
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ibr/article/download/0/0/53315/58161
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ibr/article/view/0/53315
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ofori, Isaac K. & Asonngu, Simplice A., 2021. "Foreign Direct Investment, Governance and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 108178, University Library of Munich, Germany.
    2. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    3. Ash Amin, 1999. "An Institutionalist Perspective on Regional Economic Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 365-378, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fulvio Castellacci & Magnus Gulbrandsen & Jarle Hildrum & E. Martinkenaite & Erlend Simensen & Vegard Tveito, 2016. "How Does Innovation Differ across Business Functions? Employee-level Analysis of a Multinational Company," Working Papers on Innovation Studies 20160321, Centre for Technology, Innovation and Culture, University of Oslo.
    2. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    3. Roberta De Angelis & Robert Morgan & Luigi M. De Luca, 2023. "Open strategy and dynamic capabilities: A framework for circular economy business models research," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4861-4873, November.
    4. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    5. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    6. Benjamin Cabrera & Ricardo Santa & Thomas Tegethoff & Diego Morante & Mario Ferrer, 2023. "Supply chain resilience in the Colombian defense sector before and during the COVID-19 pandemic: A comparative study," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-20, March.
    7. Miguel Perez‐Valls & Jose Cespedes‐Lorente & Juan Moreno‐Garcia, 2016. "Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 529-544, December.
    8. Alpana Taneja & Vinay Goyal & Kunjana Malik, 2023. "Sustainability‐oriented innovations – Enhancing factors and consequences," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2747-2765, November.
    9. Lirios Alos-Simo & Antonio J. Verdu-Jover & Jose M. Gomez-Gras, 2020. "Knowledge Transfer in Sustainable Contexts: A Comparative Analysis of Periods of Financial Recession and Expansion," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    10. Emre Yildiz, H. & Murtic, Adis & Klofsten, Magnus & Zander, Udo & Richtnér, Anders, 2021. "Individual and contextual determinants of innovation performance: A micro-foundations perspective," Technovation, Elsevier, vol. 99(C).
    11. Chiasson, Guy & Angelstam, Per & Axelsson, Robert & Doyon, Frederik, 2019. "Towards collaborative forest planning in Canadian and Swedish hinterlands: Different institutional trajectories?," Land Use Policy, Elsevier, vol. 83(C), pages 334-345.
    12. Diane-Gabrielle Tremblay & Juan-Luis Klein, 2012. "Metropolitan structures of decision making, governance and policy coordination: the role of social actors in Montreal," Chapters, in: Peter Karl Kresl & Daniele Ietri (ed.), European Cities and Global Competitiveness, chapter 6, pages 99-119, Edward Elgar Publishing.
    13. Pamela E. Ofori & Simplice A. Asongu & Vanessa S. Tchamyou, 2021. "The Synergy between Governance and Economic Integration in Promoting Female Economic Inclusion in Sub-Saharan Africa," Working Papers 21/071, European Xtramile Centre of African Studies (EXCAS).
    14. Christiana Müller & Stefan Vorbach, 2015. "Enabling Business Model Change: Evidence from High-Technology Firms," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(1), pages 53-75.
    15. Zhou, Jingyi & Xie, Mengyuan, 2025. "Chain leader policy and corporate green innovation—Perspectives of financing constraints and risk-taking," International Review of Financial Analysis, Elsevier, vol. 106(C).
    16. David Doloreux & David Rangdrol & Émilie Dionne, 2010. "Francophone Minority Economic Development in Canada: Addressing Political or Economic Issues?," Economic Development Quarterly, , vol. 24(2), pages 143-153, May.
    17. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    18. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    19. Giovanni Gavetti & Constance E. Helfat & Luigi Marengo, 2017. "Searching, Shaping, and the Quest for Superior Performance," Strategy Science, INFORMS, vol. 2(3), pages 194-209, September.
    20. Christoph Grimpe & Wolfgang Sofka & Andreas P. Distel, 2022. "SME participation in research grant consortia—the emergence of coordinated attention in collaborative innovation," Small Business Economics, Springer, vol. 59(4), pages 1567-1592, December.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ibrjnl:v:19:y:2026:i:3:p:84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.