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Annex B.1: Contextual Parameters and Assumptions

Parameter

Source of
information

Measurement

Assumptions[71]

Global parameters

Global financial situation

World Bank/IMF

Before-after 2009

Projects started prior to 2008 higher success-rate than after 2008

Partner country related

General business environment

World Bank
Doing Business index for relevant years

Relative position to other countries in same income group; change over relevant years or a combination

Better environment leads to more collaborations and more successful B2B projects

Successful local companies can impact the policy level through lobbying[72]

Country economic growth

World Bank and IMF for relevant period

Per capita growth of GDP

Faster growing countries lead to more B2B projects and better results in collaborations than stagnant economies

Market size

World Bank

GDP in USD

Larger economies and markets are more attractive to Danish firms and more conducive for success than smaller

Cost and availability of capital and capital-equipment

World Bank
Doing business index

Availability and access to capital

Interest rates

In countries where specific sectors have difficulties in getting access to capital, companies in these sectors are more interested in B2B support

Level of corruption

Transparency International

Relative place among countries in same income bracket

Less corrupt countries lead to better outcome in B2B and more collaborations

Political risk

Danish Export Credit Agency

Rating category 1-7

Lower risk, greater attractiveness and better results

Partner company related (at outset of B2B)

Size of local partner company (employment)

B2B Files

EU definition (employment)

The larger, the more successful and the greater the impact…

International experience of local company

B2B Files

Interviews

Degrees of business experience (exports, FDI, etc.)

The more international, the more successful the B2B

Danish company related (at outset of B2B)

Size of Danish partner company (employment)

B2B Files

Web-site

Micro, Small, Medium, Large according to EU definition using employment and turnover

The larger, the more successful and the greater the impact…

Previous international experience of Danish company

B2B Files/Interviews

E-survey

Fully internationalised

Partly internationalised

No or marginal internationalisation

The more international, the more successful the B2B

The more international the less additionality of B2B

Motivation for Danish company for seeking B2B

B2B Files

Interviews

E-survey

Outsourcing or offshoring to reduce costs, new markets, access to resources, legislation concerning safety, etc.

 

Robustness of Danish partner

B2B Files

Turnover, profitability, equity

The more robust, the greater chance for successful collaborations

Collaboration related

Sector incl. business drivers in the sector

B2B files

Web-sites

E-Survey

A typology required with a limited number of categories (e.g. ICT, agriculture …)

Knowledge-based service industries better success than traditional manufacturing [73]

Form of collaboration (judicial link)

B2B Files

E-Survey

Joint venture, trading, informal partnership, technical assistance, other forms

JVs are better performing with higher degree of sustainability and impact than other forms

“Depth” of collaboration (phases of B2B Programme)

B2B Files

Number of years of collaboration

Longer B2B collaboration increases the chance for success

Other parameters

Language

Danish Business Associations

E-survey

Interviews

Language barriers

English speaking (as lingua franca) countries more attractive provide netter results in collaborations than French or Spanish

Embassy staff – interest and qualifications

Interviews

E-survey

High interest/competence

Medium

Low

Strong linkage between embassy interest/ competence to number of collaborations and collaboration performance in B2B

Danish level of trade and investment in the country

Danish trade and FDI statistics

Level of Danish FDI, exports, size of business community

The more established as a partner country, the more likely success of new projects


[71] Success measure for example: a measure in between Very successful: sustained, profitable, and expanding collaboration with positive ‘externalities’; to failure = collaboration that was closed down or failed, with no lasting impact.

[72] The extent of development impact in a given country from FDI depends on its bureaucratic quality, governance/ accountability, political stability and extent of corruption. This is an old hypothesis – the better and more fair the business framework, the more development impact (employment, technological diffusion, linkage creation, CSR, etc.) can be expected.

[73] There are different business determinants in cement as compared to (computer) programme development. Cement is likely to give you a number of interesting backward/forward linkages plus employment for less advantaged groups, while the programme development may have higher technological impact.

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This page forms part of the publication "Evaluation of Danida Business-to-Business Programme 2006-2011 – Evaluation 2014.05" as annex b.1
Version no. 1.0, 2014-11-14
Publication may be found at the address http://www.netpublikationer.dk/um/14_danida_btb_programme_2006_2011/index.html