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Against all odds! Why the ‘three darlings’ failed?

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  • Amankwah-Amoah, Joseph

Abstract

Although a plethora of research has examined the benefits of government support for stateowned enterprises, our understanding of how domestic support can become a source of liability is severely limited. In this paper, we develop a novel concept of “liability of domestic support” to articulate how government support for state-owned firms can create conditions for business failure to occur. Analyses of the cases of Air Afrique, Nigeria Airways and Ghana Airways led to the identification of factors which helped to create the conditions that allowed inefficiencies, mediocrity and incompetence inherent in state-owned organisations to thrive, which ultimately led to their demises.

Suggested Citation

  • Amankwah-Amoah, Joseph, 2014. "Against all odds! Why the ‘three darlings’ failed?," MPRA Paper 63383, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63383
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    File URL: https://mpra.ub.uni-muenchen.de/63383/1/MPRA_paper_63383.pdf
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    References listed on IDEAS

    as
    1. Lilach Nachum, 2003. "Liability of foreignness in global competition? Financial service affiliates in the city of London," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1187-1208, December.
    2. Joseph Amankwah-Amoah & Yaw A. Debrah, 2014. "Air Afrique: the demise of a continental icon," Business History, Taylor & Francis Journals, vol. 56(4), pages 517-546, June.
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    More about this item

    Keywords

    Business failure; airlines; africa;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation

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