Informal Social Networks as Intermediaries in Foreign Markets

2020 ◽  
Vol 16 (3) ◽  
pp. 629-656 ◽  
Author(s):  
Marina Apaydin ◽  
Jon Thornberry ◽  
Yusuf M. Sidani
Keyword(s):  
Social Networks ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Positive Impact ◽  
Internationalization Process ◽  
Informal Networks ◽  
Business World ◽  
Informal Social Networks ◽  
History Of ◽  
Asian Economy

ABSTRACTWe investigate how informal social networks can assist multinational firms in their internationalization strategy. We propose a refinement of the Uppsala internalization model (Johanson & Vahne, 2009) grounded in network theory, by developing an intermediate position between an ‘insider’ and an ‘outsider’ for conditions when the transformation of an outsider into an insider is limited by institutional constraints. An intermediary position represents one of the sides of ‘patron-client’ informal networks (Denoeux, 1993) whereby the other side is represented by the ‘insider’. We argue that this setup would help mitigate the Liability of Outsidership (Johanson & Vahne, 2009), a replacement of the Liability of Foreignness (Hymer, 1976; Zaheer, 1995), in the modern networked business world. We contextualize our proposition for the case of Iran, a large rising West-Asian economy with known institutional limitations, and suggest that the informal network of local merchants (bazaaries) could play an important intermediary role in Multinational Enterprises (MNEs) internationalization process. We review the history of bazaaries and make a series of propositions exemplifying possible ways informal networks could influence the internationalization process. In addition to re-affirming the importance of the MNE country of origin (emerging markets, and low psychic distance with Iran), we propose that an intermediary of the Iranian bazaaries will have a positive impact on performance and survival of the MNE's subsidiary in Iran, especially in the case of incongruence of MNE's leadership with Shi'a Islam. Additionally, we suggest that employing the Iranian diaspora may also improve subsidiary performance and survival.

scholarly journals Tacit networks, crucial care: Informal networks and disaster response in Nepal’s 2015 Gorkha earthquake

Urban Studies ◽  
2018 ◽  
Vol 56 (3) ◽  
pp. 561-577 ◽  
Author(s):  
Rocio Carrero ◽  
Michele Acuto ◽  
Asaf Tzachor ◽  
Niraj Subedi ◽  
Ben Campbell ◽  
...  
Keyword(s):  
Social Networks ◽  
Urban Areas ◽  
Disaster Response ◽  
Informal Networks ◽  
Gorkha Earthquake ◽  
Local Networks ◽  
Human Needs ◽  
2015 Gorkha Earthquake ◽  
Informal Social Networks

It is often reiterated that a better understanding of local networks and needs is key to risk reduction. Nevertheless, the crucial role of informal social networks and actors in the catering for human needs in disaster circumstances remains largely under-explored. If we have to rethink the ‘work’ that informality does for our understanding of urban areas, its contribution to resilience, and take it seriously in the ‘full spectrum of risk’ in urban and peri-urban centres, better and more balanced methods are needed. This paper attends to this gap. Examining the mechanisms of aid provision in the aftermath of the 2015 Gorkha Earthquake in Nepal, it details an experimental set of quantitative research methods to explore the role of informal social networks in the provision of critical human needs in natural disasters. Relying on a sample of 160 households across four districts and 16 villages in the built environment affected by the Gorkha earthquake, the paper reveals that, overall, a wide disparity exists in the comparative importance of organisations in the provision of aid and resources. Much crucial after-disaster care is catered for by a mix of relatives, temples, friends, neighbours and local clubs. It highlights the importance of informal networks in understanding, and theorising, governance (of disaster and of the ‘urban’ more in general), and calls for greater attention to its role. It is time, it argues, to revalue informal disaster governance networks as a crucial, not tacit, component of disaster response.

scholarly journals Chapter 3

2020 ◽  
Vol 9 (1) ◽  
pp. 43-64
Author(s):  
Adele Baruch ◽  
Daniel Creek
Keyword(s):  
Social Networks ◽  
Hurricane Katrina ◽  
New Orleans ◽  
Natural Disaster ◽  
Informal Networks ◽  
Traumatic Memories ◽  
History Of ◽  
And Performance ◽  
The Right ◽  
Special Circumstances

The special circumstances related to helping in the aftermath of Hurricane Katrina—both a natural disaster and a man-made catastrophe—are explored. Stories of individual, formal, and informal networks of helping, alongside stories of exploitation and despair, were shared by participants. Significant to the history of the aftermath of Katrina was the eventual formalizing of some of the informal helping networks, such as the establishment of a musician’s village and performance center in the 9th Ward of New Orleans. The theme of “doing the right thing” echoed throughout our participant interviews, as did “the chance to move beyond angry.” Stories of helping appeared to provide examples of hope to the citizens affected by the storm, as well as encouragement towards purposeful action. The stories of helping, along with participation in altruistic social networks, appear to provide a pathway to the recollection and transformation of traumatic memories.

scholarly journals Transfer Pricing: Conceptual Thoughts on the Nature of the Multinational Firm

2006 ◽  
Vol 31 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Markus Brem ◽  
Thomas Tucha
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Transaction Cost Economics ◽  
Transfer Pricing ◽  
Multinational Firm ◽  
Value Chains ◽  
Chain Model ◽  
Business World ◽  
Clear Cut

This paper deploys Transaction Cost Economics (TCE) to elaborate on the shortcomings of ‘mainstream‘ transfer pricing in multinational firms. Departing from the notion that multinationals increasingly (re-)organize their business along multinational value chains irrespective of jurisdictional borders, this paper discusses the nature of the multinational firm and the problem of choosing the right intra-group (transfer) price. The mainstream transfer pricing approach derived from the Arm�s Length Principle (ALP) is deemed inappropriate for globally operating multinational enterprises (MNEs). Referring to the value chain model, the paper suggests that ‘entrepreneurial coordination’ is the key performance feature to be used for valuing business activity and for allocating — for tax transfer pricing purposes — standard mark-ups and residual profits along the value chain. The main findings of this paper are: Neo-classical concepts on marginal pricing may not suffice to establish arm's lengh transfer pricing; the inadequacy between tax-world transfer pricing (getting income allocation right) and business-world transfer pricing (getting management incentives right) might find its explanation in such concepts. MNEs need to be understood as large organizations different from domestic large organizations by the fact that they operate in different jurisdictions and/or institutional environments. Operative business is coordinated along business lines in which value chain processes can e identified. De facto, business-world transfer pricing takes place along such value chains in which tangible and intangible assets are transferred and hence require appropriate pricing from both the tax-world and the business-world perspective. TCE is a worthy candidate for illustrating governance structures and transactional attributes of business between related parties of a multinational group; such features support arguments to establish arm's length transfer pricing. Regularly, a clear cut-off of functional allocation into tax jurisdictions is difficult to achieve because of the high degree of integration into the value chains of the multinational. TCE appears to better distinguish between so-called �routine� and ‘non-routine’ functions. Transactions of the MNE are rarely of an ‘either-or’ feature (either ‘market’ or ‘hierarchy’). Depending upon transactional attributes, the price of such transaction can be assessed by variables describing the institutional and economic context, the transaction-specific contract, the stage of the business process involved, the strategy chosen, and the function pattern (function, risk, assets) Comparable information is rarely found in databases which provide company information. The more non-routine functions and intangibles are involved, the less is the tested function (or business unit) comparable with companies from external databases. Under these data constraints on comparables, the arm�s length tests on transfer pricing will have to resort to internal information if the ALP is intended to remain viable. A next-generation transfer pricing approach may have to make use of patterns of governance to characterize and to value the functional contributions to the overall value chain.

scholarly journals NETWORK RESEARCH ON INTERNATINALIZATION OF FIRMS FROM THE EMERGING ECONOMIES: LITERATURE REVIEW AND PROPOSITIONS

2015 ◽  
Vol 10 (1) ◽  
Author(s):  
Ruta Kazlauskaite ◽  
Sarunas Abramavicius ◽  
Tadas Sarapovas ◽  
Modestas Gelbuda ◽  
Dominyka Venciūtė
Keyword(s):  
Social Networks ◽  
Literature Review ◽  
Systematic Literature Review ◽  
Emerging Economies ◽  
Network Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Market ◽  
Internationalization Process ◽  
Network Research

Although interest in internationalization of firms from the emerging economies is growing, research employing network theories has been limited. The article provides a systematic literature review on the internationalization of firms originating from the emerging economies, from a network perspective. The major finding is that, contrary to expectations, social networks do not play such an important role as in the case of developed market firms. To fill this gap and to advance a more nuanced view of the network effects, the paper generates hypothesis highlighting the positive impact of networks on the initiation of internationalization process, and negative impact of social networks on speed, foreign market diversity and internationalization performance.

scholarly journals Vietnamese Women’s Responses to Domestic Violence in South Korea

2018 ◽  
Vol 3 (3) ◽  
pp. 45
Author(s):  
Suyeon Park
Keyword(s):  
Social Networks ◽  
Domestic Violence ◽  
South Korea ◽  
Help Seeking ◽  
Informal Networks ◽  
Vietnamese Women ◽  
Informal Social Networks ◽  
Depth Interviews

The purpose of this study is to explore Vietnamese women’s responses to domestic violence in South Korea. Based on in-depth interviews with 22 Vietnamese women who marry Korean men, six strategies to cope with domestic violence are identified: enduring, escaping, confronting, negotiating, getting help from informal networks, and seeking assistance from formal sources. This study presents that informal social networks are critical in the process of help seeking for abused Vietnamese women.

Networks in the Knowledge Economy

2003 ◽  
Keyword(s):  
Social Networks ◽  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Organizational Performance ◽  
Knowledge Economy ◽  
Positive Impact ◽  
Informal Networks ◽  
Managerial Implications ◽  
Knowledge Intensive

In today's de-layered, knowledge-intensive organizations, most work of importance is heavily reliant on informal networks of employees within organizations. However, most organizations do not know how to effectively analyze this informal structure in ways that can have a positive impact on organizational performance. Networks in the Knowledge Economy is a collection of readings on the application of social network analysis to managerial concerns. Social network analysis (SNA), a set of analytic tools that can be used to map networks of relationships, allows one to conduct very powerful assessments of information sharing within a network with relatively little effort. This approach makes the invisible web of relationships between people visible, helping managers make informed decisions for improving both their own and their group's performance. Networks in the Knowledge Economy is specifically concerned with networks inside of organizations and addresses three critical areas in the study of social networks: Social Networks as Important Individual and Organizational Assets, Social Network Implications for Knowledge Creation and Sharing, and Managerial Implications of Social Networks in Organizations. Professionals and students alike will find this book especially valuable, as it provides readings on the application of social network analysis that reflect managerial concerns.

Impact of motives of inward FDI on benefits perceived by foreign multinational enterprises investing in India

2020 ◽  
Vol 15 (1) ◽  
Author(s):  
Nawal Kishor ◽  
◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Structural Equation ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Positive Impact ◽  
Equation Modeling ◽  
Confirmatory Factor ◽  
Inward Foreign Direct Investment ◽  
The Impact

The study aims to determine the principal motives of inward foreign direct investment by foreign multinational companies in India. The study undertakes to find out the impact of motives of inward foreign investment of multinational firms on benefits as perceived by the managers.  The paper uses a survey approach to collect data about motives and its impact on benefits. Statistical tools, namely confirmatory factor analysis, structural equation modeling have been used. The study found that principal motive for foreign multinational firms to undertake investment is market-seeking followed by resource-seeking and efficiency-seeking motive. The strategic-asset seeking motive does not significantly influence foreign direct investment in India. The study found a positive impact between perceived benefits and motives of inward foreign direct investment in India.

Emanzipation von der jüdischen Orthodoxie. Die Jugend- und Lehrjahre 1862-1890 des Leo Wertheimer alias Constantin Brunner

Aschkenas ◽  
2019 ◽  
Vol 29 (2) ◽  
pp. 313-349
Author(s):  
Matthias Springborn
Keyword(s):  
Intellectual Development ◽  
Early Years ◽  
Informal Networks ◽  
Major Focus ◽  
German Empire ◽  
Self Image ◽  
Childhood And Youth ◽  
History Of ◽  
German Jewish ◽  
Jewish Intellectuals

Abstract This biographical essay is designed to give a survey of Constantin Brunnerʼs early years, from his childhood and youth until the end of his student days, based on the available letters, manuscripts and published writings. A major focus is on Brunnerʼs intellectual development from protected child, spiritually shaped by Jewish orthodoxy, to aspiring religious scholar and finally to the secular philosopher known today. The article is therefore a contribution to a range of research topics: to the field of German-Jewish biography during the period of the German Empire; but also to the history of ideas, particularly in relation to the secularization of religious minorities. It also touches upon developments inside the Jewish community: the way different intellectual and religious currents are related to each other, the informal networks between Jewish intellectuals and how national (German or Jewish) identity is related to the Jewish self-image.

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