scholarly journals Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries

2019 ◽  
Vol 167 (4) ◽  
pp. 725-744 ◽  
Author(s):  
Michael A. Sartor ◽  
Paul W. Beamish
Keyword(s):  
Organizational Structure ◽  
Multinational Corporations ◽  
Joint Venture ◽  
Substantial Contribution ◽  
Foreign Subsidiaries ◽  
Local Partner ◽  
Public Corruption ◽  
Private And Public ◽  
Wholly Owned Subsidiary ◽  
Private Corruption

AbstractCorporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations (MNCs). Foreign host market corruption is disaggregated into two components—private and public corruption. We employ an uncertainty-based perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary’s organizational structure [wholly-owned subsidiary (WOS) or a joint venture (JV) with a local partner]. We expect that each type of corruption fosters a different type of uncertainty (environmental or behavioral) which predominates in shaping the MNC’s choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome.

THE DYNAMICS OF TECHNOLOGY MANAGEMENT PRACTICES IN LOCAL FIRMS IN FOREIGN PARTNERSHIPS IN THE CONTEXT OF A LESS DEVELOPED ECONOMY

2012 ◽  
Vol 09 (05) ◽  
pp. 1250039
Author(s):  
DILUPA NAKANDALA ◽  
TIM TURPIN ◽  
TERRENCE SLOAN
Keyword(s):  
Technology Management ◽  
Multinational Corporations ◽  
Management Practices ◽  
Joint Venture ◽  
Developing Economies ◽  
Technological Development ◽  
Local Partner ◽  
Foreign Partner ◽  
Partner Firm ◽  
Local Firms

This paper investigates the technology management practices and the learning processes for the technological development of local firms in foreign partnerships. It initially notes that the existing literature is focused on the technological benefits to local firms in developing economies from multinational corporations rather than explaining the dynamics of the technology management practices used by local firms who engage in foreign partnerships. This paper also notes a gap in the current literature regarding the technology learning process during partnerships from the perspective of the local partner firms in developing economies. The structural analysis of the data from six case studies of joint venture partner firms in Sri Lanka shows that the technology management practices of local firms need to evolve strategically, based on the partnership characteristics, throughout the life of that partnership. It identifies that the level of skills and capabilities within the local firm, the organizational dominance of the foreign partner firm, clarity of roles in the partnership, and the potential technological contribution from the foreign partner firm are all significant determining factors affecting the choice of dynamic technology management practices by local partner firms.

Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit

2018 ◽  
Vol 18 (3) ◽  
pp. 86-103
Keyword(s):  
Joint Venture ◽  
Cultural Distance ◽  
Model Choice ◽  
Outward Fdi ◽  
Strategic Fit ◽  
Market Expansion ◽  
Technological Competence ◽  
Entry Model ◽  
Wholly Owned Subsidiary ◽  
Strategic Motives

The effect of cultural distance (CD) on the entry mode choice (EMC) has been intensively studied but the empirical results are mixed. This study adopts the strategic fit perspective to examine how firms’ strategic motives and technological ownerships may influence the EMC in face of different cultural distances. Analyzing Taiwanese outward FDI cases from 2004 to 2007, this study found that firms entering the culture-distant countries would choose the wholly-owned subsidiary (WOS) mode when emphasizing more about the protection of technological competence than market expansion, or else would choose the joint-venture (JV) mode when the market expansion is prioritized.

Resource Flows within Multinational Corporations: Implications for Subsidiary Strategy

2002 ◽  
Vol 3 (1) ◽  
pp. 25-46
Author(s):  
Jiatao LiTrond Randøy ◽  
Trond Randøy
Keyword(s):  
Multinational Corporations ◽  
Multinational Corporation ◽  
Strong Support ◽  
Two Dimensions ◽  
Service Industries ◽  
Foreign Subsidiaries ◽  
Global Integration ◽  
Foreign Companies ◽  
Resource Flows ◽  
Subsidiary Roles

Built on the network conceptualization of the multinational corporation (MNC) in the literature, this paper explores three sets of intra-MNC resource flows that facilitate global integration: capital, knowledge, and product flows. By considering both the direction and intensity of the resource flows, this paper presents a framework for analyzing the strategic roles of foreign subsidiaries. We explore this framework with data on U.S. subsidiaries of foreign companies in 46 manufacturing and service industries and 24 MNC home countries. Differences in subsidiary roles are analyzed along two dimensions: the extent to which the subsidiary is a provider of resources to, or a user from, the MNC network. The results provide strong support for differentiated subsidiary roles in relation to the direction and intensity of intra-MNC resource flows. This framework provides managers with better understanding of global integration across subsidiaries.

scholarly journals The Paths of Internationalization of Chinese Innovative Firms

2020 ◽  
Vol 12 (6) ◽  
pp. 2575
Author(s):  
Hongping Du ◽  
Liliana Mitkova ◽  
Na Wang
Keyword(s):  
Developing Countries ◽  
Joint Venture ◽  
Mode Choice ◽  
Entry Mode ◽  
Developed Countries ◽  
Future Research ◽  
Entry Mode Choice ◽  
Market Location ◽  
Wholly Owned Subsidiary ◽  
Entry Speed

Innovative enterprises from emerging markets, such as China, are a group of understudied enterprises, which could generate new and important views on internationalization. Some unique characteristics of Chinese innovative enterprises are creating new ideas that help to a better understanding of entry mode choice, market location choice, and entry speed in the paths of internationalization. Drawing on an unbalanced panel of Chinese innovative enterprises’ outward foreign direct investment (OFDI) event data, we analyzed the tendency of the paths of internationalization of Chinese innovative enterprises and the determining factors that influence the Chinese innovative enterprises’ choice in entry mode, market location, and entry speed. The results show that: (1) Chinese innovative enterprises are more likely to choose developing countries than developed countries. (2) When these firms conduct investment activities in developed countries, the probability rank (from high to low) of entry mode choice is acquisition, along with the wholly-owned subsidiary, exporting and joint venture. When these firms expand the business in developing countries, the entry mode of export is most likely to be chosen and the acquisition is least likely to be chosen. (3) This tendency and paths choice of internationalization in entry mode, market location and entry speed are influenced by the international experience, the multidimensional proximity, psychic distance, internationalization motivation, ownership structure, and innovation ability. Finally, we discuss these contributions and make some suggestions for future research.

Family Firms and the Choice Between Wholly Owned Subsidiaries and Joint Ventures: A Transaction Costs Perspective

2018 ◽  
Vol 44 (2) ◽  
pp. 211-232 ◽  
Author(s):  
Maria Cristina Sestu ◽  
Antonio Majocchi
Keyword(s):  
Transaction Costs ◽  
Family Involvement ◽  
Family Firms ◽  
Joint Venture ◽  
Entry Modes ◽  
Family Control ◽  
The Family ◽  
Wholly Owned Subsidiary ◽  
Transaction Costs Economics

We examine the effects of family control on entry mode choice by integrating Transaction Costs Economics with the family business literature. Using a dataset of 951 foreign investments, we investigate the role of family involvement on entry modes. After controlling for endogeneity, we find that if both the investing and the local firm are family firms, forming a joint venture is preferred, while if only the investing firm is a family firm, a wholly owned subsidiary is more likely. Results show that family control has an important impact on entry modes, an hypothesis that has not yet been fully explored.

scholarly journals Use of Big Data to Improve Environmental Sustainability in Developing Countries

2017 ◽  
Vol 12 (11) ◽  
pp. 249 ◽  
Author(s):  
Maged Adel Abdo Mukred ◽  
Zheng Jianguo
Keyword(s):  
Big Data ◽  
Multinational Corporations ◽  
Environmental Sustainability ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Government Sector ◽  
Wide Range ◽  
Private And Public ◽  
The Government ◽  
Set Up

Big data inhibits the ability to significantly impact a wide range of fields in an economy, from the government sector to commercial sectors like retail and healthcare. Not only has it altered the way companies assess their product’s demand and supply patterns but has also phenomenally helped in making the environment healthier in recent years. It carries the ability to identify valuable data from a huge dataset with exceptional parallel processing. This study presents the general introduction of big data bringing forth its various features and advantages along with the challenges which organizations face while using with respect to environmental sustainability. Observations have also been made on the findings of various researches, and studies and surveys performed by some international organizations in the recent years on the urgent need of taking necessary measures and initiatives to prevent further depletion of natural resources thus making the environment sustainable. Making the issue the study aim, future studies must intend to explore how multinational corporations can enhance environmental sustainability through big data analytics. Lastly, recommendations have been made to organisations– private and public in hiring adequate expertise and set-up, thereby making big data analytics more efficient and reliable.

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