Multinational Corporations’ Relationship with Political Actors

Author(s):  
Pervez N. Ghauri ◽  
Amjad Hadjikhani ◽  
Cecilia Pahlberg

As a result of globalization and the rapid advancements in information availability, international firms are increasingly facing issues of transparency and avoidance of illegitimate opaque behavior. Whereas earlier studies concern either transparency or opacity independently, this chapter extends the analytical scope and conceives of them as related issues. The aim is to propose a theoretical view on transparency in the relationship between multinational companies (MNCs) and political organizations. Underpinning a continuum for transparency/opacity, the theoretical view resorts to behavioral theory and puts forward the elements of trust/distrust and legitimacy/illegitimacy for further understanding the management of transparency in this relationship. The interplay between the three concepts of transparency/opacity, legitimacy/illegitimacy, and trust/distrust are discussed and the reasoning is further demonstrated by using cases from two Swedish firms, Ericsson and Teliasonera, which are presented in the appendix.

2015 ◽  
Vol 27 (3) ◽  
pp. 328-340 ◽  
Author(s):  
Daniel Jiménez-Jiménez ◽  
Micaela Martinez-Costa ◽  
Angel R. Martínez-Lorente ◽  
Hammady Ahmed Dine Rabeh

Purpose – Multinational corporations face a more intense competence and a higher number of changes in the different countries they operate. In this regard, organizational learning and quality management are key elements that could help them to survive in the market. Convinced by the numerous benefits and competitive potential of total quality management (TQM) programmes, corporations have promoted its implementation. The purpose of this paper is to analyse the interaction between these programmes and organizational learning, more precisely with exploitation and exploration capabilities, in order to understand the way in which quality management programmes could help to develop learning in the companies. Design/methodology/approach – Structural equation modelling was used to test the proposed model. The sample comprised 111 medium-sized Spanish companies, with four different responses each. Constructs are measured with Likert scales previously tested in the literature. Findings – The results show that TQM is positively and strongly related to both exploitation and exploration and that the relationship between TQM and exploitation is higher. Concerning the effects of exploitation and exploration on firm performance; results of the analysis show that only exploration capability positively affects organizational performance. It is also confirmed a positive effect of a TQM system in performance. Originality/value – This research covers a gap in the literature regarding the relationship between organizational learning and TQM, particularly with the concepts of exploitation and exploration in the context of multinational companies.


Author(s):  
Giang Thi Huong Vu

<p>In this study, the relationship between high performance work system (HPWS) and organizational citizenship behavior (OCB) in multinational corporations (MNCs) in Vietnam, a fast-developing country with highly economic growth in Asia, was investigated. Besides, the underlying mechanism of this relationship was also explored. From the social exchange approach, an underlying mediated mechanism of career success in the relationship between HPWS and OCB was hypothesized. Data collected from individual employees working in multinational companies in Vietnam was used to test the hypotheses. The research findings supported the partial mediating role of career success in the positive relationship between HPWS and OCB. In addition, research implications as well as suggestions for future research were also presented.</p><p> </p><p><strong>Bahasa Indonesia Abstrak: </strong><em>Dalam studi ini, hubungan antara </em>high performance work system <em>(HPWS) dan </em>organizational citizenship behavior <em>(OCB) di </em>multinational corporations<em> (MNC) di Vietnam, negara cepat berkembang dengan pertumbuhan ekonomi yang sangat tinggi di Asia, ditelliti. Selain itu, mekanisme yang mendasari hubungan ini juga dieksplorasi. Dari pendekatan pertukaran sosial, mekanisme mediasi yang dimediasi dari kesuksesan karir dalam hubungan antara HPWS dan OCB dihipotesiskan. Data yang dikumpulkan dari masing-masing karyawan yang bekerja di perusahaan multinasional di Vietnam digunakan untuk menguji hipotesis. Temuan penelitian mendukung peran mediasi parsial dari kesuksesan karir dalam hubungan positif antara HPWS dan OCB. Selain itu, implikasi penelitian serta saran untuk penelitian masa depan juga disajikan.</em></p>


1973 ◽  
Vol 12 (3) ◽  
pp. 315-316
Author(s):  
G. M. Radhu

The report by the UNCTAD Secretariat, submitted to the third session of the United Nations Conference on Trade and Development held in Santiago (Chile) in April 1972, deals with the restrictive business practices of the multinational corporations with special reference to the export interests of the developing countries. Since the world war, there has been a tremendous growth in the size and activities of many international firms. They have grown from the national corporation to the multidivisional corporation and now to the multinational corporation. With each step they acquired greater financial power, better technology and know-how and more complex administrative structures. They have subsidiaries and branches all over the world. In the course of the sixties they became one of the dominant factors in determining the pattern of world trade. At the same time, their increasingly restrictive business practices, which tended to adversely affect world trade and the export interest of less developed countries, attracted the attention of the governments both in developed and less developed countries and serious concern was shown at the international level. It is against this background that the UNCTAD undertook the study on the question of restrictive business practices.


Author(s):  
Svitlana Frunza ◽  
Liudmyla Romaniuk ◽  
Daria Nasypaiko

The purpose of the article is to study the features of financing the production of intellectual products of multinational corporations in the context of globalization. Research methodology – system-structural and comparative research (to understand the logic of financing the production of intellectual products of multinational corporations), statistical and economic analysis (in assessing the status and prospects of the role of transnational corporations). The scientific novelty is to substantiate the peculiarities of financial management in multinational companies and to determine the main aspects of international financial management, which will increase the production of intellectual products of multinational corporations and the development of international economic relations. The article identifies the distinctive features of modern multinational companies and technologically sound strategies that contribute to their economic success. The main ways to obtain long- term investments and the peculiarities of the formation of strategic alliances and their agreements are clarified. Various forms of international cooperation are considered. Conclusions. According to the results of the study, it was concluded that the role of transnational corporations is growing, which is determined by their participation in world gross domestic product, increasing the share of international movement of capital, labor and other resources. Their importance in the world economy is evidenced by the scale of foreign operations in all sectors and areas of social production. The main obstacles to the financing of multinational corporations are the disagreement of the interests of companies and governments of the host countries, taking into account economic, political, monetary, financial and legal risks. Ukraine is able to use the model of open innovation networks as a key to entering the global innovation economy in line with current trends. Keywords: transnational corporations, transnationalization, investments, innovations, research and development, research and development works.


Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana

Orientation: This article investigates the question, of whether culture really matters in implementing international strategic human resource management (SHRM) practices.Research purpose: Specifically, this study sought to investigate the extent to which employee cultural orientations moderate the link between SHRM practices and firm performance in large foreign manufacturing multinational companies in Kenya. Motivation for the study: Large foreign multinational companies have generally applied SHRM practices without adaptation when trying to improve employee performance even though resource based perspectives argue for the consideration of employees’ cultural orientations. Research design, approach and method: SHRM practices were conceptualised as independent variables measured through distinct practices. Organisational performance as a dependent variable was measured using constructs of image, interpersonal relations, and product quality. Cultural dimensions adopted for this study were power distance, uncertainty avoidance, individualism or collectivism, and masculinity or femininity. The above conceptual framework was tested by the use of both quantitative and qualitative techniques with data from fifty (50) large foreign multinational companies operating in Kenya. Main findings: Findings indicated that the relationship between SHRM practices and firm performance depend to a greater extent on employee cultural orientations when power distance is considered. Power distance (PD) refers to the extent of people accepting that power in institutions and organisations when distributed unequally. The greater the PD, the greater the acceptance of this inequality. Practical/managerial implications: The study supported the notion that the relationship between SHRM practices and firm performance is moderated by power distance through motivation but not by the other three bipolar dimensions namely, Uncertainty Avoidance, Masculinity or Femininity and Individualism or Collectivism. Contribution/value-add: This is the first large-scale empirical article that has focused on the moderating role of employees’ cultural orientations in large foreign manufacturing companies operating in Kenya.


2020 ◽  
Author(s):  
Peyman Hekmatpour

The Anthropocene age is marked by increased human impacts on the natural environment. As social beings, humans interact with each other, and with their surrounding environments, often through organizations and institutions. Religion and the polity are among the most influential human institutions, and they tend to impact the natural environment in several ways. For instance, several thinkers have claimed that some of the central ideas of the Abrahamic traditions, such as the concept of “Domination of men over the earth,” are among the causes of several anthropogenic environmental problems. By contrast, some of the ideas of non-Abrahamic, particularly animistic, religions are found to be associated with environmental conservation and stewardship. The polity can also contribute to environmental problems. The relationship between political organizations and environmental degradation, at any level of analysis from local to global, is well studied and established in the literature. Politicizing the natural environment, however, is not without tradeoffs. Environmentalism, by certain groups of people, is considered as a “stigma,” while it is a central concept in the political ideology of another part of the population. This antagonism is harmful to the environmental protection cause. I make the case that religion, or at least a number of religious ideas, can be conducive to the process of depoliticizing the natural environment. In this paper, I strive to draw a theoretical framework to explain how religion and the polity can mutually impact the natural environment.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.


2019 ◽  
pp. 1222-1236
Author(s):  
Flaminia Saccà

In the last decade, Italy has gone through some deep changes in the political sphere. The fall of the Berlin Wall had forced political parties from opposite sides to re-organize themselves: their targets, ideologies and projects. At the same time, these historical events have been shortly followed by a major national bribe scandal that invested the main political leaders who had governed the Country for half a century. As a result, the last turn of the past Millennium has left a strongly politicized Country with no acknowledged leaders, no clear ideologies, no traditional, recognizable parties. It is in those years that Berlusconi's new venture gained votes and success. The fracture between political organizations, leaders and citizens though, became unhealable. The younger generations seemed to be the ones who suffered the most from political apathy or, worse, distrust. So we wanted to investigate who were the young politicians who, in these times of crises, had chosen politics as an important part of their lives. We have carried out two different surveys in different years and we found that political parties were changing deeply and radically. That their role in the political socialization of young political actors had become very thin. That candidates began to be chosen amongst the affluent few or, at least, amongst those whose personal fame and social/professional/family network would guarantee their party at least a dowry of votes that could make the difference in times of elections. But this method would not guarantee cohesion nor government stability.


Author(s):  
Banks Miller ◽  
Brett Curry

This chapter explores two theories central to understanding the behavior of federal prosecutors. First, principal-agent theory is introduced to frame the relationship between national political actors, or principals, in the executive and legislative branches and their agents—U.S. Attorneys (USAs). In that exploration, the chapter focuses on problems of adverse selection and the monitoring of agents by principals. Second, the chapter considers career ambition theory as it pertains to the post-service employment opportunities of USAs. That discussion focuses on the potential of USAs to ascend to higher positions in the administration or secure nomination to the federal bench, both of which require the approval of principals in the executive branch.


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