scholarly journals Do Multinationals Transplant their Business Model?§

2020 ◽  
Author(s):  
Dalia Marin ◽  
Linda Rousová ◽  
Thierry Verdier
Keyword(s):  
Eastern Europe ◽  
Business Model ◽  
Equilibrium Model ◽  
Multinational Firms ◽  
Monopolistic Competition ◽  
Market Competition ◽  
Theory Of Knowledge ◽  
Host Countries ◽  
Percentage Points ◽  
Industry Equilibrium

Abstract What determines whether or not multinational firms transplant the mode of organisation to other countries? We embed the theory of knowledge hierarchies in an industry equilibrium model of monopolistic competition to examine how the economic environment may affect the decision of multinational firms about transplanting the mode of organization to other countries. We test the theory with original and matched parent and affiliate data on the level of decentralization of 660 Austrian and German multinational firms and 2200 of their affiliate firms in Eastern Europe. We find that market competition in both home and host markets is an important driver of organizational transfer to host countries: An increase in competition in the home (host) market by 10 percentage points lowers (increases) the probability of transplanting by 9 (7) percentage points.

scholarly journals Innovative approaches in forest management – the application of a business model to designing a small-scale forestry strategy

2017 ◽  
Vol 63 (No. 9) ◽  
pp. 393-400 ◽  
Author(s):  
Pek Richard ◽  
Riedl Marcel ◽  
Jarský Vilém
Keyword(s):  
Forest Management ◽  
Business Model ◽  
Business Models ◽  
Market Competition ◽  
Added Value ◽  
Business Strategies ◽  
Small Scale ◽  
Forest Owners ◽  
Small Forest ◽  
Innovative Approaches

The strong market competition forces forest owners to find innovative approaches to forest management, and business models are becoming integral parts of successful innovations and business strategies. This paper deals with the applicability of a business model (as an innovation tool) for small forest owners. The main objectives were to design a business model applicable in the forestry sector and to find the innovative business alternatives for the small-scale forest owner reflecting the local situation (in a case study in the Czech Republic). The extended business model CANVAS was used. The embedded data was evaluated on the software developed at the Savonia University in Finland where business opportunity and competitive advantage were the main evaluation criteria. As a result, a proposed strategy was advised to be followed. The biggest added value of the extended CANVAS model is giving an objective and unbiased evaluation of the situation of small forest owners. The business model design proved a usable and applicable tool to be used in forest management, for the research has shown that the quantitative data should be complemented by qualitative research in order to get the complex view.

The dilemma of institutional duality and multinational firms 1967-2017

2018 ◽  
Vol 26 (2) ◽  
pp. 145-172 ◽  
Author(s):  
Akiebe Humphrey Ahworegba
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
Multinational Firms ◽  
Management Approach ◽  
Institutional Pressures ◽  
Host Countries ◽  
Content Type ◽  
External Pressures ◽  
Institutional Contexts ◽  
Institutional Duality

Purpose The purpose of this paper is to improve the understanding of the dilemma of institutional duality (ID) confronting multinational corporations and to propose a workable solution for this problem. Design/methodology/approach The author has searched the literature using several terms directly related to the dilemma of ID and multinational firms. Findings The findings reveal that to attain “legitimacy”, subsidiaries strive to balance institutional pressures stemming from external environments in the host country and their parent organizations. Understanding institutional theories of multinational corporations enables the subsidiaries to manage external pressures. ID impact varies among subsidiaries, depending on institutional contexts and internal strategies of subsidiaries. Originality/value An “institutional duality incidence model” portraying how dual institutions make “legitimacy” problematic for subsidiaries is proposed. A framework for identifying factors generating ID dilemma and their management approach is also proposed. It is concluded that a multinational corporation that recognizes ID as a central concern is more likely to achieve and maintain a higher level of harmony with its subsidiaries and host countries.

scholarly journals Inflation targeting at the crossroads: Evidence from post-communist economies during the crisis

2014 ◽  
Vol 47 (2) ◽  
pp. 247-260 ◽  
Author(s):  
Marjan Petreski
Keyword(s):  
Eastern Europe ◽  
Economic Crisis ◽  
Inflation Targeting ◽  
Central And Eastern Europe ◽  
Output Growth ◽  
Lower Amount ◽  
Percentage Points ◽  
Growth Decline ◽  
Independent States

The objective of this paper is to assess if inflation targeting post-communist economies performed better, in terms of output growth, during the crisis than their non-inflation targeting counterparts. The paper also puts the issue in the context of the preconditions of inflation targeters to adopt this regime. 26 post-communist economies of Central and Eastern Europe and the Commonwealth of Independent States are analyzed during the ongoing economic crisis. Results suggest that inflation targeters of those countries performed worse than non-inflation targeters. The growth decline in inflation targeters postcommunist economies has been estimated to be deeper by about four percentage points than that in non-inflation targeters. The study finds very limited role of the preconditions for growth decline. Only the lower amount of monetary financing of the budget may have contributed in inflation-targeting countries to have gone through the crisis better.

scholarly journals From offsetting to a publication based business model: The (potential) comeback of selection, individual prices and competition

2016 ◽  
Author(s):  
Kai Geschuhn ◽  
Dirk Pieper
Keyword(s):  
Open Access ◽  
Business Model ◽  
Large Scale ◽  
Market Competition ◽  
Price Setting ◽  
Max Planck ◽  
Publication Data ◽  
New Business ◽  
Individual Choices ◽  
Austrian Science Fund

Watch the VIDEO of the presentation.In March 2016, the ESAC initiative brought together offsetting users from all over Europe to discuss principles and mechanisms of a new business model, currently referred to as offsetting (http://esac-initiative.org/activities/offsetting-workshop-2016/). Participants agreed upon a “Joint Understanding of Offsetting”. The document most importantly includes the claim for agreements to lead to a “pay as you publish” model, meaning that institutions should be billed only for those articles published by their authors rather than making prepayments or pay lump sums, which still include reading or access fees.Subsequently, offsetting users like the Max Planck Digital Library, JISC, the Austrian Science Fund (FWF) or the Netherlands started using the Open APC Initiative to aggregate data from offsetting big deals (http://treemaps.intact-project.org/apcdata/offsetting/). The collection already provides insights on the allocation of offsetting publications over a publisher's journal portfolio, which allows predictions not only on the popularity of journals among researchers in terms of preferred places for publications, but also for a “pay-as-you-publish-model”. Currently the publication data from the Springer offsetting pilot participants (“Springer Compact”) show a distribution of publications over not even the half of Springer’s journal fleet.The conference contribution analyses the data together with bibliometric information and subscription based usage statistics in order to draw conclusions for a truly publication based open access business model in terms of re-implementing individual choices made by authors, price sensitivity, price setting, and market competition. It will be discussed, how offsetting contributes to the desired large-scale open access transformation, as outlined by the Open Access 2020 initiative (http://oa2020.org/).

The largest financial groups from emerging economies

2018 ◽  
Vol 13 (5) ◽  
pp. 1050-1069 ◽  
Author(s):  
J. Francois Outreville
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Multinational Firms ◽  
Emerging Countries ◽  
Strong Impact ◽  
Internationalization Process ◽  
Host Countries ◽  
Content Type ◽  
Financial Groups

Purpose Numerous articles contain recommendations as to how emerging countries can attract foreign direct investment on terms that are beneficial to both the investing firm and the host society but very few explore the conditions for firms from emerging countries to invest abroad. The purpose of this paper is twofold: the first is the documentation of the preferred locations of foreign affiliates for the largest financial groups headquartered in emerging countries; and, second, is to identify some of the determinants associated with the location-specific advantages of these host countries. Design/methodology/approach The analysis of the internationalization process of these groups is based on a list of top financial groups ranked by total assets. In the empirical section, the factors that explain the choice of these locations by multinational firms are categorized as resources seeking, market seeking, efficiency-seeking variables and cultural variables. Findings There is empirical evidence that institutions prefer to invest in foreign locations that minimize some dimensions of the culture. Other factors like the role of efficiency variables, i.e. trade efficiency, political risk and government effectiveness, in host countries also have a strong impact on the determinants of the internationalization process. Originality/value The paper puts forward a framework for analyzing determinants of foreign direct investment of multinational financial groups from emerging economies.

Foreign productivity improvements and domestic welfare effects

2020 ◽  
Vol 47 (1) ◽  
pp. 132-148
Author(s):  
Dionysios Karavidas
Keyword(s):  
General Equilibrium ◽  
Equilibrium Model ◽  
Monopolistic Competition ◽  
General Equilibrium Model ◽  
Trading Partner ◽  
Single Factor ◽  
Productivity Improvement ◽  
Content Type ◽  
Developing Region ◽  
Foreign Productivity

PurposeThis paper aims to shed light on two mechanisms that show how foreign productivity improvement affects domestic welfare.Design/methodology/approachFirst, this study applies a general equilibrium model that takes into account how wages respond to productivity improvements. Second, this study uses a monopolistic competition model that shows how benefits or losses from foreign productivity changes are distributed within domestic economy.FindingsFirst of all, this study shows that a region’s productivity improvement is beneficial for the region itself as well as for its trading partner. Moreover, the study finds that productivity improvement in a developing region is beneficial for the entire economy, benefits all unskilled workers in the economy and skilled workers in the developing region and hurts those in the developing region’s trading partner.Originality/valueThis study contributes to the existing literature in two key aspects. First, the study applies a two-region, two-factor, one-sector general equilibrium model with flexible wages, and second, the study uses a two-region, two-factor, two-sector monopolistic competition model, relaxing the single-factor (labor) assumption, which is used in other works. Under the single-factor assumption, foreign productivity changes do not have any impact on domestic income distribution. In reality, however, any productivity change between countries creates losers and winners within each country. Hence, the author believes that it is imperative to study how benefits or losses that come from foreign productivity changes are distributed between domestic production factors.

The State Expropriation Risk and the Pricing of Foreign Earnings

2021 ◽  
Author(s):  
Iftekhar Hasan ◽  
Ibrahim Siraj ◽  
Amine Tarazi ◽  
Qiang Wu
Keyword(s):  
Multinational Firms ◽  
Value Relevance ◽  
Management Practice ◽  
Host Countries ◽  
Foreign Earnings ◽  
The Us ◽  
Country Factors ◽  
Expropriation Risk ◽  
Trade Relationship ◽  
Relationship Of

We examine the pricing of U.S. multinational firms’ foreign earnings in regard to their risk of expropriation and unfair treatment by the governments of the countries in which their international subsidiaries are located. Using 8,891 firm-years observations during the 2001-2013 period, we find that the value relevance of foreign earnings increases with the improvement of the protection from state expropriation risk in the subsidiary host-countries. Our results are not driven by the earnings management practice, investor distraction, country informativeness, and political and trade relationship of a foreign country with the US. Furthermore, our results are robust to the confounding effects of country factors, measurement error in the variable of the risk of expropriation, influence of private contracting institutions, and endogeneity in the decision of location of subsidiaries.

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