scholarly journals Local responsiveness strategy of foreign subsidiaries of Chinese multinationals: The impacts of relational-assets, market-seeking FDI, and host country institutional environments

2019 ◽  
Vol 37 (3) ◽  
pp. 661-692
Author(s):  
Ziyi Wei ◽  
Quyen T. K. Nguyen
Keyword(s):  
Host Country ◽  
Institutional Environments ◽  
Foreign Subsidiaries ◽  
Chinese Multinationals ◽  
Relational Assets

Workforce reduction across borders: The role of legal frameworks

2017 ◽  
Vol 60 (2) ◽  
pp. 224-245 ◽  
Author(s):  
Ola Bergström
Keyword(s):  
Multinational Corporations ◽  
Human Resource ◽  
Host Country ◽  
Human Resource Practices ◽  
Institutional Environments ◽  
Foreign Subsidiaries ◽  
Workforce Reduction ◽  
Practice Transfer ◽  
Legal Frameworks

This article reports on a case study of a Swedish multinational corporation where human resource practices were successfully transferred to its foreign subsidiaries in the context of extensively regulated host country institutional environments, offering an opportunity to provide a deeper understanding of the role of legal frameworks when transferring human resource practices within multinational corporations. The findings indicate that the transfer of human resource practices was not simply a matter of passively adapting to host country legal frameworks. A more balanced conceptualisation of the role of legal frameworks in human resource practice transfer is needed, including a view of law as negotiable and open to interpretation and that host country institutional environments can also contribute to and support multinational corporations to transfer human resource practices across foreign subsidiaries.

Strategic motives, institutional environments, and firm’s FDI ownership

2017 ◽  
Vol 25 (4) ◽  
pp. 307-327 ◽  
Author(s):  
Yigang Pan
Keyword(s):  
Host Country ◽  
Interaction Effects ◽  
Annual Reports ◽  
Institutional Environments ◽  
Host Countries ◽  
Content Type ◽  
Listed Firms ◽  
High Level ◽  
Strategic Motives ◽  
Subsidiary Ownership

Purpose The study conceptualizes how firms’ strategic motives interact with the heterogeneity of host country institutional environments in determining the subsidiary ownership. The author hypothesizes and tests two interaction effects. The study found that firms with market-seeking motives are more affected by the heterogeneity of host country institutional environments, while firms with resource-seeking motives are less affected by the heterogeneity. The empirical findings are based on a sample of overseas subsidiaries reported in the annual reports of listed firms in China. Design/methodology/approach In this study, an empirical investigation was conducted using a sample of subsidiaries of listed firms in China. The data were compiled from 2012 annual reports of listed firms in China. The sample consists of 2,270 subsidiaries of these firms. Findings The study conceptualizes that firms with market-seeking motives and resource-seeking motives are influenced differently by the heterogeneity of host country institutional environments in determining their subsidiary ownership. We hypothesize two interaction effects. Firms with market-seeking motives are more subject to the heterogeneity of host country institutional environments in determining their FDI ownership level. In contrast, firms with resource-seeking motives are less subject to this heterogeneity. The findings largely supported the study’s hypotheses. Originality/value This study fills an important gap in the literature by incorporating the interaction between strategic motives and host country environments in the analysis of subsidiary ownership. The findings of the study suggest that firms with a market-seeking motive are more particular about the host country institutional environments. They will acquire a high level of ownership in host countries with attractive institutional environments. In contrast, firms with resource-seeking motive are less concerned with the host country institutional environments. Their decision on subsidiary ownership is less affected by the variance in host country institutional environments. This study adds to the stream of studies that have examined outward investments of firms from emerging economies, particularly the outward expansion of Chinese firms with different strategic motives.

Toward a better understanding of MNEs’ local staffing decision: a multilevel analysis

2015 ◽  
Vol 53 (10) ◽  
pp. 2321-2338 ◽  
Author(s):  
Youjin Baik ◽  
Young-Ryeol Park
Keyword(s):  
Hierarchical Linear Modeling ◽  
Multinational Enterprises ◽  
Longitudinal Design ◽  
Human Resources Management ◽  
Institutional Distance ◽  
Institutional Environments ◽  
Foreign Subsidiaries ◽  
Cross Sectional ◽  
Content Type ◽  
Regional Diversification

Purpose – The purpose of this paper is to address the question of how regional diversification affects subsidiary staffing composition in multinational enterprises. Another important objective of this study is to examine the effects of institutional distance, specifically regulative and normative distances, on foreign subsidiary staffing composition. Design/methodology/approach – To estimate firm- and country-level parameters simultaneously, hierarchical linear modeling was conducted on a sample of 1,068 foreign subsidiaries of South Korean firms operating in 25 countries in 2014. Findings – The results reveal that intra-regional diversification has a positive effect, whereas inter-regional diversification has a negative effect on local staffing in foreign subsidiaries. In addition, there is a positive association between informal distance (such as normative distance) and local staffing of foreign subsidiaries, while formal distance (such as regulative distance) is negatively related to local staffing of foreign subsidiaries. Research limitations/implications – The cross-sectional nature of the data in this study may preclude examination of the relationships among institutional distance, institutional environment, and subsidiary staffing composition. The authors suggest that future researchers employ a longitudinal design to examine the effects on staffing composition of institutional distance and institutional environments over time. Originality/value – The paper contributes to the literature on international human resources management by highlighting the importance of combining multilevel parameters to improve assessment of the importance of firms’ competitive strategy and institutional environments in local staffing in foreign subsidiaries.

scholarly journals The Impact of Corruption Distance on Ownership Strategies of Spanish and Portuguese MNEs

2018 ◽  
Vol 17 (1) ◽  
pp. 15-30
Author(s):  
Mariana Pedrosa Faria ◽  
Fernando Carvalho ◽  
Nuno Rosa Reis
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Home Country ◽  
Foreign Subsidiaries ◽  
Ownership Strategy ◽  
Important Decision ◽  
The Absolute ◽  
Using Data ◽  
The Impact

The ownership strategy of foreign subsidiaries is an important decision for multinational enterprises (MNEs). Previous research has analyzed the effect of country dimensions on this strategy, both from the home and the host country. In this paper we delve into the effect of differences between home and host country on the MNEs’ ownership strategies. Empirically, we analyze the influence of corruption distance on the ownership strategies of Spanish and Portuguese MNEs, using data from 3,941 foreign subsidiaries. We found that the higher the absolute corruption distance between Spain (or Portugal) and the host country, the higher the ownership controlled by MNEs. However, when the host is more corrupt than the home country, MNEs have a lower ownership level in the local subsidiaries.  

scholarly journals Influence of Exchange Rate Fluctuations and Credit Supply on Dividend Repatriation Policy of U.S. Multinational Corporations

2020 ◽  
Vol 9 (s1) ◽  
pp. 267-290 ◽  
Author(s):  
Muhammad Tahir ◽  
Haslindar Ibrahim ◽  
Abdul Hadi Zulkafli ◽  
Muhammad Mushtaq
Keyword(s):  
Exchange Rate ◽  
Multinational Corporations ◽  
Host Country ◽  
Method Of Moments ◽  
Foreign Subsidiaries ◽  
Credit Supply ◽  
Exchange Rate Fluctuations ◽  
Private Credit ◽  
The Difference ◽  
Generalised Method Of Moments

AbstractThis study aims to examine the effect of exchange rate fluctuations and credit supply on the dividend repatriation policy of foreign subsidiaries of U.S. multinational corporations (MNCs) around the world. The difference generalised method of moments (GMM) estimator was applied to estimate the dynamic dividend repatriation model. The results suggest that the appreciation of host-country currency against the USD leads to higher dividend repatriation by the foreign subsidiaries of U.S. MNCs. Moreover, results reveal that higher availability of private credit in the host country results in lower dividend repatriation by the U.S. MNCs’ foreign subsidiaries.

scholarly journals Do Foreign Subsidiaries Improve Host Country Competitiveness? Insights from Hungary

AIB Insights ◽  
2018 ◽  
Author(s):  
László Reszegi ◽  
Péter Juhász ◽  
Erzsébet Czakó ◽  
Attila Chikán
Keyword(s):  
Host Country ◽  
Foreign Subsidiaries ◽  
Country Competitiveness
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