Home government influence on Russian MNEs: balancing control against interest

2016 ◽  
Vol 11 (4) ◽  
pp. 474-496 ◽  
Author(s):  
Andrei Panibratov

Purpose The purpose of this paper is to provide a better understanding of how the government influences the internationalization of emerging MNEs and, more specifically, answer the questions how and to what extent does the combination of the home country government’s control and interest influence Russian MNEs. Design/methodology/approach First, the author examined sector-specific factors and institutional forces that affect the development of the Russian economy’s industries. Second, the author has classified the sectors included in this study into four groups according to the following two main criteria: the interest of the government in the development of the sector, and the degree of state control for the firms in the sector. Third, the author has analyzed the forms and types of the government participation in firms’ internationalization in defined groups based on the observation of industries’ legislative acts and state decrees and orders. After that, the author has verified the existence of certain similarities of strategies under the governmental influence, and finally discussed the extent of the control and interest implied by the government toward these firms. Findings After analyzing the patterns of the state involvement in firms’ internationalization in various groups the author found that some of the groups are characterized by similar types of government role and their responses are, also, sometimes similar. The author presents a more detailed look at the above results in Table III, and explain the two-sided role of the government in different groups of firms. Research limitations/implications While the literature emphasizes that institutional forces shape the internationalization of emerging multinational enterprises, they have not been comprehensively linked to explaining the contradictory role of the government in this process. The author addresses this gap by examining an integrated influence that home government factors (namely, control and interest) exert in enabling firms to compete abroad. In addition, the author contributes to the knowledge about the behavior of Russian firms, which is one of the less researched areas in the field of international management. Practical implications The paper also has value for companies’ strategists as it provides them with understanding of the complexity of government-related determinants influencing the internationalization process of their firms and the types of firms’ abilities to be developed or supported. It also provides a practical tool for modeling their international strategy formation and accounting for different types of state influences on internationalization of EM firms. Originality/value This paper highlights the government-related aspects of the internationalization of Russian MNEs. Even when they go abroad with strong product capabilities and a proactive managerial style, they still benefit from home country institutional resources. The author sees the strength of the empirical findings in further extension of the understanding of origins, consequences and prospects of internationalization of emerging market firms with the home government involvement.

Author(s):  
Santanu Kumar Satapathy ◽  
Shirish Sangle ◽  
Seema Unnikrishnan

Purpose There is a need for considerable attention on the adoption of cleaner technologies (CT) by firms for climate proactivity for developing countries such as India. Literature survey suggests that government, market and civil society are the key drivers of CT adoption (CTA) in developing countries. The purpose of this paper is to investigate the mediating and moderating role of the government in CTA for climate proactivity. Design/methodology/approach The data collected from a survey of Indian firms were analyzed through exploratory factor analysis and multiple regression analysis to examine the mediating and moderating role of the government. Findings The empirical outcome was compared with the current government policies to summarize the research findings. Research limitations/implications There is scope of future research to examine the moderating and mediating role of market and civil society in CTA for climate proactivity. Practical implications The study will provide significant insight into various stakeholders associated with the CTA such as government, technology manufacturers, marketing community, environmental professionals and associated researchers. The research model will be useful for policymakers, managers and researchers for understanding CTA in the Indian context. Social implications The output model will be useful for the government to formulate forward-looking strategies toward the adoption of CT by industries for climate proactivity. Originality/value Unlike previous studies in which the government was recognized as a key driver of CTA, this study makes an attempt to test the moderating/mediating role of government in CTA in India. The findings of the study are supported by adequate empirical evidence.


2015 ◽  
Vol 11 (1) ◽  
pp. 4-16
Author(s):  
C. Gopinath ◽  
Muntakim M. Choudhury

Synopsis The case describes the evolution of Bangladesh's garment industry, the second largest garment exporter in the world, and its operational problems. The focus is on the fire that occurred on November 24, 2012 at Tazreen Fashions, a unit that is a part of a global supply chain for US and European retailers. The case explores the role of the government, western retailers, industry association and NGOs subsequent to the fire, and shows how increasing CSR expectations of corporations are making them take on responsibility for what should be that of the government or the garment unit. Research methodology Secondary sources; published materials. Relevant courses and levels International Business, Business and Society, Supply Chain Management, Doing Business in Emerging Markets. Theoretical basis Corporate social responsibility stakeholder theory market entry.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tingting Jiang ◽  
Buyun Yang ◽  
Bo Yang ◽  
Bo Wu ◽  
Guoguang Wan

Purpose The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs. Design/methodology/approach Based on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018. Findings The results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions. Originality/value This study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kee Hoon Chung ◽  
DaEun Kim

PurposeMuch of existing research has attempted to explain Asian Growth Paradox through formal institution – role of the government or rule of law. Therefore, this paper attempts to empirically explain the paradox with informal institution including interaction between informal and formal institutions. Two interrelated research questions summarize this research. First, how can we capture the relationship between informal and formal institutions? Then, how is that relationship different for Asian Paradox states vs non-paradox states?Design/methodology/approachTo capture the relationship between informal and formal institutions, we use Helmke and Levitsky (2004)'s framework to categorize the interaction as complementing, competing, substituting and accommodating. We perform cross-sectional regression analysis for more than 130 countries.FindingsWe find that the developed, developing and the Asian Paradox states display different patterns of interaction between informal and formal institutions. However, we also find that the interaction effect has a limited value explaining growth for most of these countries, suggesting that Helmke and Levitsky (2004)'s framework has limitations. Finally, we challenge the notion of Asian Paradox states, as countries outside of Asia also qualify as the Paradox states.Originality/valueNot much empirical effort has examined how different relationships between informal and formal institutions can explain growth internationally across countries. We show that different institutional patterns explain growth across the Paradox states and non-Paradox states.


Facilities ◽  
2019 ◽  
Vol 38 (1/2) ◽  
pp. 39-51 ◽  
Author(s):  
Riza Yosia Sunindijo ◽  
Fatma Lestari ◽  
Oktomi Wijaya

Purpose This study aims to assess the hospital readiness and resiliency in a disaster-prone Indonesia. Design/methodology/approach Hospital Safety Index (HSI), containing 151 items, was used to assess ten hospital in West Java and five hospitals in Yogyakarta. Findings The average level of HSI for the hospitals under investigation is B, indicating that their ability to function during and after emergencies and disasters are potentially at risk, thus, intervention measures are needed in the short term. Hospitals in Yogyakarta scored lowly in terms of their emergency and disaster management, even though they have previously experienced major disasters in 2006 and 2010. Practical implications The role of the government is crucial to improve hospital readiness and resiliency in Indonesia. It is recommended that they: identify disaster-prone areas so that their hospital readiness and resiliency can be assessed; assess the readiness and resiliency of hospitals the prioritized areas; implement intervention measures; re-assess the readiness and resiliency of hospitals in the prioritized areas after implementing intervention measures; and develop a framework to ensure that the hospitals can maintain their level of readiness and resiliency over time. Originality/value Research on hospital readiness and resiliency in Indonesia is still limited despite the size of the country and its proneness to disasters. This research has investigated the feasibility and value of using HSI to assess hospital readiness and resilience in Indonesia.


Author(s):  
Philippe Gugler

Purpose A significant stream of literature focuses on host countries’ locations when explaining why firms internalize some of their activities in specific countries. At first glance, home location schemes and specificities seem to have attracted less attention in the scientific community. The purpose of this contribution is to provide a literature review linked to the specific issue of emerging countries’ country-specific advantages and the competitiveness of emerging market multinational enterprises. Design/methodology/approach The approach is to present the main theoretical developments related to the role of home countries in the internationalization process of domestic firms in general and as far as the home context of emerging countries is concerned. Findings A rigorous analysis of the literature shows that theoretical developments and empirical studies on international business do refer explicitly or at least implicitly to the role of home countries in the international expansion of firms. Originality/value The value of this review is to develop the main streams of the literature and to serve as a basis for the other contributions published in this area.


2014 ◽  
Vol 19 (3) ◽  
pp. 188-201 ◽  
Author(s):  
Suhaiza Ismail ◽  
Fatimah Azzahra Haris

Purpose – This paper aims to, first, examine the rationale for implementation of public private partnerships (PPP) in Malaysia. Second, it investigates the differences among perceptions of the public and private sectors, in relation to the rationales for implementing PPP in Malaysia. Design/methodology/approach – A questionnaire survey captured the perceptions of the public and private sectors concerning the rationales for PPP implementation in Malaysia. Of 250 questionnaires distributed, 122 usable responses were obtained and analysed using SPSS to rank the importance of the rationales and to examine differences in perceptions between the government and private sectors. Findings – Results show that “to enhance private sector involvement in economic development” is the only rationale that was rated as most important by all respondents. While other rationales were perceived as important, “to reduce the role of the Government in providing public services and facilities” was regarded as the least important rationale by both parties. The results also reveal significant differences between public and private perceptions for the least important rationales. Originality/value – This paper offers empirical evidence on the concept and the rationales for implementing PPP in Malaysia, and also provides evidence on the differences in the perceptions of the public and private sectors in relation to these rationales.


2014 ◽  
Vol 7 (4) ◽  
pp. 524-538 ◽  
Author(s):  
Dipti Parashar

Purpose – The purpose of the paper is to primarily understand the changing role of the government in Housing delivery and envisaged role through public-private-partnerships (PPPs) in Housing. An increased emphasis has been laid on the private sector and particularly on PPPs for delivery of Housing to the urban poor ever since the government changed its role from being a “provider” to “enabler” of housing supply. Design/methodology/approach – The paper analyses the various projects of Partnership models that have emerged in various parts of the country for Housing the poor and investigates the role of the Government that emerges within the same. Findings – The enablement and partnership approaches primarily aimed for increasing housing supply have so far seen the government play a backhand role rather than a forthcoming one, not keeping with the spirit of a PPP. The current models of PPPs backed with incentives, cross subsidies and waivers of charges are inadequate and not holistic in approach resulting in a “zero-cost” policymaking stand of the government within the same. The government needs to be in the forefront, devising appropriate PPP innovative approaches and appropriate urban poor housing models to achieve the impact that the policies desire. An enhanced role of the government is crucial along with models along with clear institutional support to meet the desired demand. Research limitations/implications – Research is limited to cases of PPP that are currently existing in the country. Originality/value – With policy emphasis in the recent times for PPP in housing, the topic is of utmost importance for research.


2018 ◽  
Vol 35 (4) ◽  
pp. 683-708 ◽  
Author(s):  
Kevin I.N. Ibeh ◽  
Idika Awa Uduma ◽  
Dilshod Makhmadshoev ◽  
Nnamdi O. Madichie

Purpose The purpose of this paper is to explore the motivations underpinning the foreign direct investment (FDI) activities, including the location and entry mode decisions, of nascent multinational enterprises (MNEs) from West Africa. Design/methodology/approach This research adopted a case study approach entailing the triangulation of interview data with documentary evidence on two leading West African financial service companies that have FDI footprints in over 50 country markets. Findings Evidence suggests the primacy of market-seeking motivations in explaining the FDI activities of the explored nascent MNEs, with relationship, efficiency and mission-driven motivations emerging as strong sub-themes. Having neither the global resonance of their traditional counterparts nor the government-augmented resource profile of their Asian counterparts, the study firms appear to have shied away from costly strategic asset and prestige-seeking FDI, and preferred psychically and institutionally proximate sub-Saharan African markets and non-organic collaborative entry modes. Research limitations/implications The above insights should be considered tentative given the study’s limited evidence base. This underscores the need for a larger scale empirical effort to assess the propositional inventory outlined at the end of this paper. Practical implications Africa’s growing population of MNEs are urged to continue to strengthen their positions across African markets, view these regional markets as a platform to learn and upgrade their capabilities for future expansion into more challenging global markets, and to augment their limited resource profiles, including by tapping into their global diaspora networks. Policy makers should support their market-seeking initiatives given evidence that they could be a pathway to higher order FDI motivations. This evolutionary approach reflects enduring lessons from earlier generations of MNEs. Policy makers should also support continuing intra-African investment flows as a pathway to creating more sizeable, integrated African markets and generating positive spill-overs, including in typically blind-sided post-conflict or fragile African markets. This also entails pushing for cross-border regulation needed to minimise the transfer of systemic risks across countries. Originality/value The study provides rare empirical evidence on hitherto neglected MNEs from sub-Saharan Africa, thus extending the geographic compass of research on FDI motivations. It identifies some distinctive aspects of the explored MNEs’ FDI behaviour, including the previously unheralded mission-driven motivation, whilst also revealing shared characteristics with traditional MNEs and emerging market multinational enterprisess.


2020 ◽  
Vol 27 (3) ◽  
pp. 885-895
Author(s):  
Mushfiq Swaleheen ◽  
Marcus Tim Allen

Purpose The purpose of this paper is to investigate the role of multinational enterprises’ (MNEs) home country corruption in their decision to bribe officials in foreign host countries. Design/methodology/approach A model that predicts MNE bribing by controlling for a multitude of foreign host country factors is used. The information contained in the orthogonal residuals from this model is exploited to see whether MNE’s home country factors, particularly the level of public corruption, work to amplify illegal behavior by respective MNE in abroad. Findings MNEs pay more in bribes when the foreign officials they face are more corrupt. This behavior worsens when MNE’s home country has more corruption. Social implications All UN member countries are signatories to the UN Convention against Corruption that proscribes the bribing of foreign public officials by respective MNEs. The Convention’s reliance on home country enforcement of stipulations against the bribing of foreign officials by respective MNEs exposes its efficacy of the malfeasance of home country public officials. Originality/value This paper extends the literature to an examination of MNE’s use of bribes in a world with a global anti-corruption regime. Additionally, it ties MNE behavior in foreign countries to corruption in MNE’s home country.


Sign in / Sign up

Export Citation Format

Share Document