Corporate name change: Investigating South African multinational corporations' postacquisition performance

2019 ◽  
Vol 61 (6) ◽  
pp. 929-941
Author(s):  
Ru‐Shiun Liou ◽  
Rekha Rao‐Nicholson
2014 ◽  
Vol 20 (6) ◽  
pp. 832-850 ◽  
Author(s):  
John M Luiz ◽  
Grant Visser

AbstractWe examine the manner in which South African-owned multinationals devolve power to their international subsidiaries in Africa, and the resulting effects of the interaction between strategy and structure. The research suggests that a dynamic process of power distribution may develop, in terms of the following: (1) the performance of the subsidiary, its expertise and experience to adapt to local market demands; and (2) the multinational’s need to manage the risks propagated by the African operating environment in which it operates. There is a dual facet to power devolvement, one in which South African multinationals opt for risk mitigation through long-standing control, often at the expense of operational adaptation. In contrast with the literature, which sees multinational corporations as differentiated networks, in the South African case we find a more traditional approach with clear headquarters and ‘miniature replica’ subsidiaries. This suggests that South African multinational corporations are still emerging and that it will take time to develop differentiated networks.


2014 ◽  
Vol 11 (3) ◽  
pp. 253-272 ◽  
Author(s):  
Pravina D. Oodith ◽  
Sanjana Brijball Parumasur

This paper analysed the viability of Prahalad’s Bottom of the Pyramid (BOP) proposition within the South Africa context as a mechanism to eradicate/minimize poverty by ensuring a joint collaborative effort by government, NGOs, large domestic firms, multinational corporations (MNCs) as well as the poverty stricken citizens themselves. It conceptualized the BOP proposition and, having reviewed statistics on the extent of poverty globally and in South African in particular, confirmed that the BOP is a lucrative market in the South African context. From the paper, it is evident that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of MNCs. It then reviewed Prahalad’s twelve Principles of Innovation and strategically divided these into six differentiation and six low-cost strategies. The paper concludes by articulating creative strategies (based on Prahalad’s 12 principles of innovation) for active participation and competitive advantage at the bottom of the pyramid, which are vividly presented in a model for strategic partners especially multinational corporations (MNCs) to adopt when expanding their scale of operations to incorporate the BOP market.


2017 ◽  
Vol 11 (1) ◽  
Author(s):  
Yuichiro Kakutani

By using an incentives/disincentives model to map the divergent behaviors of multinational corporations (MNCs) confronted by a sanctioned economy, I explain why some economic sanctions work better than others at achieving their desired political outcomes. When presented with the opportunity to “run the blockade,” MNCs are incentivized to sanction bust by the allure of higher profit through rent extraction. At the same time, MNCs are disincentivized to sanction bust by the penalties for breaking the sanction, but only if MNCs believe sanction busting operations is inconspicuous enough to avoid detection. If the incentives to sanction bust outweigh the disincentives not to, then MNCs will trade with sanctioned states, as was the case with Rhodesia. Since MNCs were crucial to both the Rhodesian and the South African economies—as it provided oil to the former and operated a significant minority of the firms in the latter—the decisions of MNCs to remain engaged in Rhodesia and to disengage from South Africa had a significant impact on the economic and political life of the two apartheid regimes. Hence, while many economic and political indicators identified by literature predicted that Rhodesia would have a shorter life expectancy under economic sanctions, Rhodesia defied all expectations and survived twice as long as South Africa.


1970 ◽  
Vol 10 (1) ◽  
pp. 41-50
Author(s):  
Nils-Erik Aaby ◽  
Thomas Zwirlein ◽  
Lisa Borstadt

2005 ◽  
Vol 36 (3) ◽  
pp. 29-40 ◽  
Author(s):  
F. Horwitz ◽  
M. Ferguson ◽  
I. Rivett ◽  
A. Lee

This exploratory study examines perspectives of multinational corporations (MNCs) from South Africa (SA) in respect of the variables considered important in product and labour markets in China. These include how MNCs first interpret and understand cultural, human capital, regulatory factors and employment practices, before considering how they might adapt to or seek to influence them. A survey of thirteen SA firms operating or trading in these markets and interviews with South Africans who had undertaken exploratory assignments in China, were done. Key factors were identified and evaluated based on relevant literature and research. The following six focus areas were found to be important for business effectiveness in this market: understanding its market complexity, importance of joint venture partners, guanxi relationship networks, human capital, language and culture, and regulatory environment.


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