The Codification Dilemma: Indigenous Knowledge as VRIN Resources and Strategic Advantage in Malawian SMEs
DOI:
https://doi.org/10.63385/jemm.v2i1.343Keywords:
Indigenous Knowledge Systems, Competitive Advantage, SMEs, Emerging Markets, Resource-Based View, MalawiAbstract
This conceptual paper addresses a critical gap in emerging market strategy by developing a theoretical framework for leveraging Indigenous Knowledge Systems (IKS) as strategic sources of competitive advantage for Malawian Small and Medium Enterprises (SMEs). In contrast to the predominance of Western strategic models, the article argues that the very institutional voids and resource constraints that characterize emerging markets create conditions where culturally-embedded IKS become valuable, rare, inimitable, and non-substitutable (VRIN) resources. Through systematic literature synthesis, the article proposes a novel tripartite typology, categorizing IKS as Relational (social networks and Umunthu philosophy), Substitutive (informal systems like chipereganyu financial associations), and Innovative (local ecological and artisanal knowledge). This framework explicates the distinct mechanisms through which each category generates advantage: building trust-based relational capital, filling institutional voids via social enforcement, and driving context-specific innovation. The study’s core contribution, however, is the identification and theorization of a central ‘codification dilemma’—the inherent tension between formalizing tacit IKS for commercial scale and preserving its authentic, culturally-embedded value and inimitability. This dilemma represents a pivotal strategic paradox for practitioners. Consequently, the study provides a decolonized strategic framework that transforms perceived institutional weaknesses into a foundation for sustainable advantage. It offers specific, actionable guidance for SME owners to audit and leverage indigenous assets and for policymakers to develop hybrid institutions that ethically protect and valorize local knowledge, presenting a roadmap for authentic business development in Malawi and similar emerging economies.
References
[1] Mugano, G., Dorasamy, N., 2024. Using SMEs to building resilience and sustainability of African economies. In SMEs Perspective in Africa. Palgrave Macmillan: Cham, Switzerland. DOI: https://doi.org/10.1007/978-3-031-69103-4_10
[2] Saad, M.H., Hagelaar, G., van der Velde, G., et al., 2021. Conceptualization of SMEs’ business resilience: A systematic literature review. Cogent Business & Management. 8(1). DOI: https://doi.org/10.1080/23311975.2021.1938347
[3] Lestari, E.D., Abd Hamid, N., Shamsuddin, R., et al., 2024. Investigating the factors of SMEs’ business resilience in the post-pandemic crisis of COVID-19 with technology adoption as a quasi-moderator: A multigroup analysis of Indonesian and Malaysian SMEs. Cogent Business & Management. 11(1). DOI: https://doi.org/10.1080/23311975.2023.2301135
[4] Barmeyer, C., Mayrhofer, U., 2008. The contribution of intercultural management to the success of international mergers and acquisitions: An analysis of the EADS group. International Business Review. 17(1), 28–38.
[5] Barney, J.B., 1991. Firm resources and sustained competitive advantage. Journal of Management. 17(1), 99–120. DOI: https://doi.org/10.1177/014920639101700108
[6] Porter, M.E., 1985. The Competitive Advantage: Creating and Sustaining Superior Performance. Free Press: New York, NY, USA.
[7] Berkes, F., 2012. Sacred Ecology, 3rd ed. Routledge: New York, NY, USA. DOI: https://doi.org/10.4324/9780203123843
[8] Bandura, A., 1977. Social Learning Theory. Prentice Hall: Englewood Cliffs, NJ, USA.
[9] Zoogah, D.B., Peng, M.W., Woldu, H., 2014. Institutions, resources, and organizational effectiveness in Africa. Academy of Management Perspectives. 29(1), 7–31. DOI: https://doi.org/10.5465/amp.2012.0033
[10] Mangaliso, M.P., 2001. Building competitive advantage from Ubuntu: Management lessons from South Africa. Academy of Management Perspectives. 15(3), 23–33. DOI: https://doi.org/10.5465/ame.2001.5229453
[11] Lutz, D.W., 2009. African Ubuntu philosophy and global management. Journal of Business Ethics. 84(S3), 313–328. DOI: https://doi.org/10.1007/s10551-009-0204-z
[12] Gugerty, M.K., 2007. You can’t save alone: Commitment and rotation savings and credit associations in Kenya. Economic Development and Cultural Change. 55(2), 251–282. DOI: https://doi.org/10.1086/508716
[13] Khavul, S., Bruton, G.D., Wood, E., 2009. Informal family business in Africa. Entrepreneurship Theory and Practice. 33(6), 1219–1238. DOI: https://doi.org/10.1111/j.1540-6520.2009.00342.x
[14] Kato, A.I., 2024. Building resilience and sustainability in small businesses enterprises through sustainable venture capital investment in sub-Saharan Africa. Cogent Economics & Finance. 12(1). DOI: https://doi.org/10.1080/23322039.2024.2399760
[15] Grant, R.M., 1996. Toward a Knowledge-Based Theory of the Firm. Strategic Management Journal. 17(S2), 109–122. DOI: https://doi.org/10.1002/smj.4250171110
[16] Saezow, K., Sukhabot, S., 2025. Synthesizing the resilience elements of small and medium enterprises (SMEs) amidst the COVID-19 pandemic crisis: A systematic review. Cogent Business & Management. 12(1). DOI: https://doi.org/10.1080/23311975.2025.2512823
[17] Gianiodis, P., Lee, S.H., Zhao, H., et al., 2022. Lessons on small business resilience. Journal of Small Business Management. 60(5), 1029–1040. DOI: https://doi.org/10.1080/00472778.2022.2084099
[18] van Niekerk, J., 2007. In defence of an autocentric account of Ubuntu. South African Journal of Philosophy. 26(4), 364–368.
[19] Tambulasi, R., Kayuni, H., 2005. Can African feet divorce Western shoes? The case of Ubuntu and democratic good governance in Malawi. Nordic Journal of African Studies. 14(2), 147–161.
[20] Jackson, T., 2018. Ideology and culture in cross-cultural management scholarship. International Journal of Cross Cultural Management. 18(2), 121–123. DOI: https://doi.org/10.1177/1470595818787658
[21] Siame, P., Chisenga, R.P.A., 2025. Financial Innovation and Resilience: Transforming Zambian MSMEs through Microfinance and Public-Private Partnerships. Journal of Emerging Markets and Management. 2(1), 15–26. DOI: https://doi.org/10.63385/jemm.v2i1.218
[22] Atiase, V., Agbanyo, S., Ganza, P., et al., 2023. Chapter 7: Understanding SME financial resilience and survivability in Africa. In: Hussain, J.G., Salia, S., Scott, J.M. (Eds.). Entrepreneurial Financial Resilience and Financial Innovation in a Turbulent Era. Edward Elgar Publishing: Cheltenham, UK. pp. 106–133. DOI: https://doi.org/10.4337/9781802203929.00014
[23] Edmondson, A.C., McManus, S.E., 2007. Methodological fit in management field research. Academy of Management Review. 32(4), 1246–1264. DOI: https://doi.org/10.5465/amr.2007.26586086
[24] Shepherd, D.A., Suddaby, R., 2017. Theory building: A review and integration. Journal of Management. 43(1), 59–86.
[25] Guba, E.G., Lincoln, Y.S., 1994. Competing paradigms in qualitative research. In: Denzin, N.K., Lincoln, Y.S. (Eds.). Handbook of Qualitative Research. Sage Publications: Thousand Oaks, CA, USA. pp. 105–117.
[26] Jaakkola, E., 2020. Designing conceptual articles: Four approaches. Academy of Marketing Science Review. 10(1–2), 18–26. DOI: https://doi.org/10.1007/s13162-020-00161-0
[27] Strauss, A., Corbin, J., 1998. Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 2nd ed. Sage Publications: Thousand Oaks, CA, USA.
[28] Whetten, D.A., 1989. What constitutes a theoretical contribution? Academy of Management Review. 14(4), 490–495. DOI: https://doi.org/10.5465/amr.1989.4308371
[29] Tracy, S.J., 2010. Qualitative quality: Eight “big-tent” criteria for excellent qualitative research. Qualitative Inquiry. 16(10), 837–851. DOI: https://doi.org/10.1177/1077800410383121
[30] Shenton, A.K., 2004. Strategies for ensuring trustworthiness in qualitative research projects. Education for Information. 22(2), 63–75. DOI: https://doi.org/10.3233/EFI-2004-22201
[31] Nonaka, I., Takeuchi, H., 1995. The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press: Oxford, UK. DOI: https://doi.org/10.1093/oso/9780195092691.001.0001
[32] Ambec, S., Treich, N., 2007. Roscas as financial agreements to cope with self-control problems. Journal of Development Economics. 82(1), 120–137. DOI: https://doi.org/10.1016/j.jdeveco.2005.09.005
[33] Shoaib, A., Siddiqui, M.A., 2020. Why do people participate in ROSCA saving schemes? Findings from a qualitative empirical study. Decision. 47(2), 177–189. DOI: https://doi.org/10.1007/s40622-020-00244-8
[34] Nkhata, D.K., Kakowa, F., 2023. The role of Malawi’s indigenous knowledge and practices in social work practice. In: Majumdar, K., Baikady, R., D'Souza, A.A., et al. (Eds.). Indigenization Discourse in Social Work. Springer Nature: Cham, Switzerland. DOI: https://doi.org/10.1007/978-3-031-37712-9_16
[35] West, A., 2014. Ubuntu and business ethics: Problems, perspectives and prospects. Journal of Business Ethics. 121(1), 47–61.
[36] Runokunda, J.C., Matsa, M., Dzawanda, B., et al., 2025. Unmasking open market informality: Merchandise and market interactions at Mtapa Open Market in Gweru, Zimbabwe. Discover Global Society. 3, 126. DOI: https://doi.org/10.1007/s44282-025-00259-5
[37] Rai, H., Baba, M.M., Babbar, M., et al., 2023. Emerging Business Trends and Management Practices: Lessons from the Pandemic. Routledge: New York, NY, USA. DOI: https://doi.org/10.1201/9781003331353
[38] Eyaa, S., Mugurusi, G., 2025. Rethinking contemporary supply chain theory using the Ubuntu African philosophy. In: Akenroye, T.O., Mkansi, M., Mugurusi, G., et al. (Eds.). Indigenous Supply Chain Management in Africa. Palgrave Macmillan: Cham, Switzerland. pp. 43–65. DOI: https://doi.org/10.1007/978-3-031-94410-9_3
[39] Akenroye, T.O., Mkansi, M., Mugurusi, G., et al. (Eds.), 2025. Indigenous Supply Chain Management in Africa: Theory and Practice. Palgrave Macmillan: Cham, Switzerland. DOI: https://doi.org/10.1007/978-3-031-94410-9
[40] Sithole, J., 2001. Africa can only use own culture. Available from: http://www.globalpolicy.org/globaliz/cultural/2001/0515afr.htm (cited 15 May 2025).
Downloads
PDF
License
Copyright (c) 2026 Jani Grey Kasunda
This work is licensed under a Creative Commons Attribution 4.0 International License.