The project investigates how and why African firms are able to be successful in changing business and institutional environments. The project will identify strategies that lead to sustained firm performance and seek to explain these firms’ success by looking at the interface between firm internal factors (resources and capabilities) and firm external factors (market structures and institutions - formal and informal). In doing that, the project combines firm level theories with institutional and business environment theories, including state-business relation theory. The project combines quantitative methodology with detailed case studies in a country and sector comparative perspective in order to produce statistical and analytical generalizations. The knowledge generated will enable the development of our theoretical understanding of African firms, private sector development and economic growth. Identifying successful strategies is expected to inform current private sector development initiatives at the country and international level, thereby potentially contributing to economic growth and employment in the three countries. The project will contribute to the capacity building of the involved African universities among senior researchers and graduating five PhD scholars and 21 Master students in the field.