New models in old frameworks? Contributions to the extension of international management theories through the analysis of emerging multinationals

2018 ◽  
Vol 13 (3) ◽  
pp. 499-517 ◽  
Author(s):  
Morgan Marchand
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Process Model ◽  
International Management ◽  
Internationalization Process ◽  
Conceptual Frameworks ◽  
Content Type ◽  
Development Stages ◽  
Emerging Multinationals ◽  
Internationalization Process Model

Purpose The extent to which emerging multinational enterprises (EMNEs) challenge extant international management (IM) theories is a question under current discussion. The purpose of this paper is to confront two classic theories (internationalization process model (IPM) and post-acquisition integration types) to several EMNEs strategies within their initial conceptual frameworks, exploring how their practices lead to extend and update existing models. Design/methodology/approach This paper compares the classic IPM with the development stages of iconic EMNEs. This reveals how EMNEs’ strategies can be analyzed within extant conceptual frameworks, extending their theoretical content. This approach is then applied to an empirical study of post-acquisition integrations conducted in France by EMNEs from 11 countries of origin. Findings Two theories are discussed, with suggested updates, within their extant frameworks, taking into account EMNEs’ strategies. First, the initial IPM is re-explored to reveal concentrated paths, from all quadrants of the framework. Similarly, post-integration typologies are updated, including the partnering approach frequently implemented by EMNEs, and the holding approach empirically identified with some specific features (subjection). Originality/value This paper combines an analysis of some iconic EMNEs’ internationalization processes and empirical data on up-market acquisitions by EMNEs from diverse countries of origin. It provides suggestions to update two IM theories.

scholarly journals Can blockchain-technology fight corruption in MNEs’ operations in emerging markets?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matthew Davis ◽  
Thomas Taro Lennerfors ◽  
Daniel Tolstoy
Keyword(s):  
Emerging Markets ◽  
International Business ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
International Management ◽  
Social Implications ◽  
Content Type ◽  
Blockchain Technology ◽  
Business Operations ◽  
Technological Perspective

Purpose The purpose of the study is to explore, with anchorage in theories about the normalization of corruption, under what conditions blockchain technology can mitigate corruptive practices of multinational enterprises (MNEs) in emerging markets (EMs). Design/methodology/approach By synthesizing a technological perspective and theory on corruption, the authors examine the feasibility of blockchain for fighting corruption in MNEs’ business operations in EMs. Findings Blockchain technology is theorized to have varying mitigating effects on the rationalization, socialization and institutionalization of corruption. The authors provide propositions describing the effects and the limitations of blockchain for mitigating corruption in EMs. Social implications This paper offers a perspective for how to tackle acute business problems and social problems pronounced in international business but also prevailing elsewhere. Originality/value The study contributes to literature in international management by systematically exploring how and under what conditions blockchain can mitigate the normalization of corruption.

Manufacturing reshoring

2019 ◽  
Vol 31 (1) ◽  
pp. 139-159 ◽  
Author(s):  
Francesco Ciabuschi ◽  
Olof Lindahl ◽  
Paolo Barbieri ◽  
Luciano Fratocchi
Keyword(s):  
Risk Management ◽  
Process Model ◽  
Future Research ◽  
Internationalization Process ◽  
Content Type ◽  
Strategic Risk ◽  
Risk Management Process ◽  
Management Perspective ◽  
Managerial Perceptions ◽  
Internationalization Process Model

Purpose This paper aims to theorize on the internationalization process model to explain cases of manufacturing reshoring as decisions taken to manage risk when internationalizing. Design/methodology/approach The paper is of a conceptual nature. Building on the logic of the internationalization process model, the authors extend previous work by focusing on firms’ risk perception (determined by commitment, knowledge and uncertainty as key variables) to explain also reshoring decisions. Findings Four propositions were developed, concerning the likelihood of firms to make manufacturing reshoring decisions. The first two propositions deal with the effects of new risk contingencies, and the other two refer specifically to the effects of managerial perceptions of three different typologies of risk, namely, host-country, home-country and reshoring-process specific risk. Originality/value While reshoring has been discussed mainly on the basis of economic arguments, this paper offers an alternative, behavioural view of this phenomenon as a strategic risk-management process. Therefore, it offers initial steps to theorize about reshoring from a risk-management perspective and, in doing so, opens up a number of avenues for future research.

Management under uncertainty – the unavoidable risk-taking

2017 ◽  
Vol 25 (2) ◽  
pp. 91-109 ◽  
Author(s):  
Jan-Erik Vahlne ◽  
Mattias Hamberg ◽  
Roger Schweizer
Keyword(s):  
Chief Executive Officers ◽  
Risk Perceptions ◽  
Process Model ◽  
Empirical Studies ◽  
Chief Executive ◽  
Chief Financial Officers ◽  
Internationalization Process ◽  
Chinese Market ◽  
Content Type ◽  
Internationalization Process Model

Purpose Accentuating the concept of management under uncertainty in the Uppsala internationalization process model, the purpose of this paper is to develop a model for describing how managers act while keeping uncertainty at an acceptable level. Design/methodology/approach The authors perform two empirical studies to underpin the model they construct. First, a survey of 309 chief executive officers and chief financial officers in large, publicly listed international firms in the Nordic region on managerial risk perceptions and, second, a case study of Volvo Car Corporation and its endeavors when developing new car models for the Chinese market on a new platform – a process characterized by unprecedented uncertainty. Findings The proposed model describing managers’ behavior under uncertainty contains elements such as adjusting/proceeding in small steps, reducing uncertainty via learning, building relationships with important parties in the environment to avoid unforeseen changes and re-dos (i.e. starting all over again) and, perhaps most important, acting despite uncertainty. Originality/value The paper highlights a central, though forgotten, concept of the Uppsala internationalization process model, i.e. management under uncertainty, and, thereby, opens a new path for research on how manager behave under the sway of uncertainty.

What determines the adoption of employee empowerment practices by MNE subsidiaries in China?

2020 ◽  
Vol 14 (4) ◽  
pp. 871-894
Author(s):  
Yishuai Yin
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Large Body ◽  
Employee Empowerment ◽  
Institutional Factors ◽  
Hierarchical Regression ◽  
Content Type ◽  
Hrm Practices ◽  
Institutional Forces ◽  
Mne Subsidiaries

Purpose This paper aims to explore how institutional factors determine the adoption of employee empowerment practices by multinational enterprises (MNEs) subsidiaries in China. Design/methodology/approach This paper examines the effects of MNE subsidiaries’ external and internal institutional factors on the degree of employee empowerment practices adopted by these subsidiaries. Using hierarchical regression analysis, hypotheses were tested with a sample of 99 MNE subsidiaries operating in China. Findings The results show that both the informal institutions of the host country and the subsidiary’s characteristics play an important role in shaping the degree of empowerment practices adopted by MNE subsidiaries in China. Originality/value Employee empowerment practices have been increasingly used by MNEs to leverage human resources for organizational competitive advantage. Although a large body of work has studied a bundle of HRM practices as a whole adopted in MNE subsidiaries, there is a paucity of research on the specific empowerment practices in MNE subsidiaries. This research fills this important gap in the literature by investigating the institutional forces that influence the empowerment practices in MNE subsidiaries in China.

Disharmony in New Harmony: insights from the narcissistic leadership of Robert Owen

2016 ◽  
Vol 22 (2) ◽  
pp. 146-170 ◽  
Author(s):  
John H. Humphreys ◽  
Milorad M. Novicevic ◽  
Mario Hayek ◽  
Jane Whitney Gibson ◽  
Stephanie S. Pane Haden ◽  
...  
Keyword(s):  
Social Exchange ◽  
Design Methodology ◽  
Process Model ◽  
Historical Case ◽  
Content Type ◽  
Extant Literature ◽  
Process Framework ◽  
Paradigmatic Analysis ◽  
New Harmony ◽  
History Approach

Purpose The purpose of this study is to narratively explore the influence of leader narcissism on leader/follower social exchange. Moreover, while researchers acknowledge that narcissistic personality is a dimensional construct, the preponderance of extant literature approaches the concept of narcissistic leadership categorically by focusing on the reactive or constructive narcissistic extremes. This bimodal emphasis ignores self-deceptive forms of narcissistic leadership, where vision orientation and communication could differ from leaders with more reactive or constructive narcissistic personalities. Design/methodology/approach The authors argue that they encountered a compelling example of a communal, self-deceiving narcissist during archival research of Robert Owen’s collective experiment at New Harmony, Indiana. To explore Owen’s narcissistic leadership, they utilize an analytically structured history approach to interpret his leadership, as he conveyed his vision of social reform in America. Findings Approaching data from a ‘history to theory’ perspective and via a communicative lens, the authors use insights from their abductive analysis to advance a cross-paradigm, communication-centered process model of narcissistic leadership that accounts for the full dimensional nature of leader narcissism and the relational aspects of narcissistic leadership. Research limitations/implications Scholars maintaining a positivist stance might consider this method a limitation, as historical case-based research places greater emphasis on reflexivity than replication. However, from a constructionist perspective, a focus on generalization might be considered inappropriate or premature, potentially hampering the revelation of insights. Originality/value Through a multi-paradigmatic analysis of the historical case of Robert Owen and his visionary communal experiment at New Harmony, the authors contribute to the extant literature by elaborating a comprehensive, dimensional and relational process framework of narcissistic leadership. In doing so, the authors have heeded calls to better delineate leader narcissism, embrace process and relational aspects of leadership and consider leader communication as constitutive of leadership.

scholarly journals Re-orienting the paradigm: path dependence in FDI theory and the emerging multinationals

2019 ◽  
Vol 14 (1) ◽  
pp. 51-69 ◽  
Author(s):  
Jan Knoerich
Keyword(s):  
Emerging Economies ◽  
Direct Investment ◽  
Design Methodology ◽  
Path Dependence ◽  
Theoretical Perspective ◽  
Multinational Enterprise ◽  
Content Type ◽  
The Core ◽  
Emerging Multinationals ◽  
Path Dependent

Purpose The purpose of this paper is to analyze how path dependence in the evolution of major theories of foreign direct investment (FDI) locked in a theoretical perspective of the multinational enterprise that focused on asset-exploitation. This perspective is challenged by recent contradicting observations of multinationals from China and other emerging economies. A decisive re-orientation of FDI theory is proposed as a way forward to resolve this tension. Design/methodology/approach Placing FDI theories into the context of FDI patterns prevailing at the time they were developed, Thomas Kuhn’s framework on the evolution of scientific knowledge is employed to track how the mainstream FDI theory emerged, went through a period of normal science and then approached a crisis of science in this field. Findings The evolution of FDI theory is strongly path-dependent, which made it difficult for theory to effectively incorporate new conceptual discoveries and empirical findings about the nature of FDI activity. Originality/value FDI theory would benefit from a full re-orientation to a demand-oriented perspective which places the pursuit of advantages, assets, resources, etc., at the core of the theory. Such a change is implicit in many recent theoretical advances and would assure theory is generalizable to all types of FDI.

scholarly journals Early global Trotters and their entrepreneurial employment practices

2016 ◽  
Vol 8 (3) ◽  
pp. 378-384 ◽  
Author(s):  
Qianqian Chai ◽  
Cherry Wun Mei Cheung ◽  
Caleb Kwong
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Wage Differential ◽  
Governance Structure ◽  
Employment Practices ◽  
Content Type ◽  
Blue Book ◽  
Host Country Nationals ◽  
Internal Context

Purpose Questions have often been asked of the ethicality of multinational enterprises (MNEs) with the conducts of many being classified as exploitative. This is particularly so the internal context, where MNEs are often reluctant to employ host country nationals at important positions and treat their host and parent countries employees differently. This study aims to examine whether the locals are really getting the raw end of the deal. Design/methodology/approach Utilising a unique record book that is available about the employment details of civil servants in Hong Kong known as the blue book, this study intends to examine whether first-moving multinational organisations treated their local employees in an ethical and reasonable manner, for the employees entering the service between 1845-1850. Findings The data suggests that, overall, host country nationals earn much less than not only the British but also those from third countries. Moreover, parent country nationals were placed at important officer and supervisory roles, as oppose to host country nationals at the bottom, forming a typically ethnocentric governance structure (Perlmutter, 1969). Furthermore, even divided by grade, the starting salary difference between host and parent country nationals remain considerable. However, the reason for this is complex, and the authors do not have a quick and precise answer as to whether there has been discrimination. Research limitations/implications The findings perhaps explain the dilemma faced by the early-movers because they tend to feel the strong need of adopting an ethnocentric approach, which can be extremely costly as a result of the large wage differential. A balance needs to be struck between this and utilising host country nationals, which might not necessarily possess all the essential qualities but might be cheaper. Originality/value This is the first study examining the employment practices of fast-moving MNEs.

Women and expatriate assignments

2016 ◽  
Vol 38 (2) ◽  
pp. 200-223 ◽  
Author(s):  
Arup Varma ◽  
Linda Russell
Keyword(s):  
Organizational Support ◽  
Multinational Enterprises ◽  
Process Model ◽  
Theoretical Perspective ◽  
Critical Issue ◽  
Critical Determinant ◽  
Content Type ◽  
Female Employees ◽  
Expatriate Assignments ◽  
The Impact

Purpose – The purpose of the paper is twofold – first, to explore the role of perceived organizational support (POS) during the three critical stages of the female expatriate experience, with a view to explaining the disproportionately low numbers of females in expatriate roles; and second, to offer specific suggestions to multi-national enterprises to help them create a level playing field so females can compete for expatriate assignments. Design/methodology/approach – The authors draw upon the theory of POS to explore how the perceived lack of support from their organization during the critical stages of expatriate assignments affects women’s interest, and potentially their performance, in expatriate assignments. The authors develop and present relevant propositions. Findings – This is a conceptual paper that offers a process model of the impact of POS on the three stages of selection of females for expatriates. Research limitations/implications – From a theoretical perspective it is clear that POS can play an important role in the willingness of females to accept international assignments. Thus POS can be a critical determinant of the potential levels of female participation in expatriate assignments. Previously, scholars have argued that the low numbers of female expatriates may be a result of a lack of interest on their part, or because they may not be welcomed in many countries. However, subsequent theses have argued, and many studies have shown, that females can be equally successful. The proposed process model helps to better understand how organizations might dismantle the barriers faced by potential female expatriates, by addressing the key issues at each stage. Practical implications – Multinational enterprises need to ensure that they are drawing from their full pool of talent, if they are to compete effectively against other multinational enterprises. By paying attention to the suggestions, and adopting and executing the propositions, they will be able to avoid the possibility that their qualified female employees may withdraw from the organization if they believe that they are not likely to be considered for expatriate assignments, simply because of their gender, even though they are interested. Social implications – From a societal perspective, it is indeed critical that qualified females are provided the same opportunities that are made available to males. Given that roughly half the population is female, multi-national enterprises that fail to treat their female employees fairly will be seen as poor corporate citizens. Originality/value – This is the first paper to address the critical issue of low numbers of females on expatriate assignments by drawing upon the tenets of the theory of POS. The authors offer several propositions to help multinational enterprises understand the impact of the gender imbalance in expatriate assignments, and offer suggestions on how organizations might improve the participation of females in expatriate assignments.

Minding the pennies – at home and abroad

2018 ◽  
Vol 34 (1) ◽  
pp. 34-36
Keyword(s):  
Case Studies ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Reading Time ◽  
Local Culture ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Head Office ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Discussions around multinational enterprises (MNEs) and how they run their foreign subsidiaries often relate to either the direction of traffic when it comes to autonomy and power or culture. For the latter, the textbooks are stuffed with case studies and examples of how things went mainly wrong when an MNE ventured into a certain market when it came to managing the local culture, with debates around globalization, localization, or (the horribly named) glocalization strategies and which one is best in any given circumstance. This is of course relevant and important, but often the meat of the story lies in the former category and the ensuing power struggles between head office and foreign hub. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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