Political strategies of Chinese firms in Germany: an institutionalist perspective

2018 ◽  
Vol 13 (6) ◽  
pp. 1438-1456 ◽  
Author(s):  
Dirk Holtbrügge
Keyword(s):  
Multinational Corporations ◽  
Financial Incentives ◽  
International Management ◽  
State Ownership ◽  
Political Connection ◽  
Industrialized Countries ◽  
Political Strategies ◽  
Moderating Effects ◽  
Content Type ◽  
Corporate Political Strategies

Purpose Chinese outward foreign direct investment (OFDI) often causes negative public responses, particularly in western industrialized countries. An important instrument of Chinese multinational corporations (MNCs) to overcome these concerns is the use of political strategies. The paper aims to discuss these issues. Design/methodology/approach Based on institutionalist theory, the author formulates research hypotheses and tests them with a sample of 611 subsidiaries of Chinese MNCs in Germany. Findings The study shows that CEO political connection is positively associated with the use of the information and financial incentives strategies, while state ownership influences the use of the financial incentives and reputation-building strategies. Also, moderating effects of subsidiary age on these three political strategies are revealed. Originality/value The author derives implications for the literature on corporate political strategies as well as for research on Chinese OFDI, institutional theory and international management theory.

Technological knowledge access and transfer of multinational corporations from emerging economies: a comparison study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang
Keyword(s):  
Multinational Corporations ◽  
Emerging Economies ◽  
Explicit Knowledge ◽  
Technological Knowledge ◽  
Foreign Direct Investments ◽  
Industrialized Countries ◽  
Content Type ◽  
Wilcoxon Rank Sum Test ◽  
The Us ◽  
Knowledge Access

Purpose This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer. Design/methodology/approach This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs. Findings While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs. Originality/value This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

Institutional environment, political connections of partial state ownership, and performance

2016 ◽  
Vol 43 (8) ◽  
pp. 856-870 ◽  
Author(s):  
Zengji Song ◽  
Abraham Nahm ◽  
Jun Yang
Keyword(s):  
Institutional Environment ◽  
State Ownership ◽  
Economic Consequences ◽  
Political Connections ◽  
Political Connection ◽  
Data Set ◽  
Content Type ◽  
Partial State ◽  
The Government ◽  
And Performance

Purpose – The purpose of this paper is to examine whether substantial differences in institutional environment in China lead to different levels of demand for political connection. Design/methodology/approach – Using a data set of 296 listed private sector enterprises (PSEs) in China, the authors empirically investigate the effects of institutional environmental factors upon political connection. Findings – The authors find that the lower the level of regional property right protection, the more powerful the government intervention, and the slower the economic development, the more motivated the PSEs were to build relationship with the government via partial state ownership. However, the degree of local corruption was not correlated with the demand for political connection. The authors also find that partial state ownership in PSEs exerted a positive effect on performance. Originality/value – Deviating from previous literature that has been mostly concerned about the economic consequences to firms caused by political connections, this paper examines the reasons for political connection among Chinese PSEs. The authors introduce a new dimension of political connection, namely, partial state ownership in PSEs.

Workplace inequality, trade unions and the transnational regulation of the employment relationships

2017 ◽  
Vol 39 (3) ◽  
pp. 351-364 ◽  
Author(s):  
Valeria Pulignano
Keyword(s):  
Multinational Corporations ◽  
Trade Unions ◽  
Employment Protection ◽  
Regulatory Regime ◽  
Industrialized Countries ◽  
Content Type ◽  
Employment Relationships ◽  
Working People ◽  
Workplace Inequality ◽  
Market Instability

Purpose The purpose of this paper is to report on research on the strategies of inequality at the workplace level of multinational corporations within the context characterized by the weakening of traditional bargaining and representation structures. Through which specific strategies multinational corporations foster inequality across different workplaces across borders and how do trade unions in Europe respond to it? Design/methodology/approach This paper is a conceptual one and it is based on existing qualitative comparative research developed by the author. Findings The regulatory regime of organized and governed labor markets and employment relationships is undermined by the employment relationships becoming increasingly unstable in most industrialized countries in Europe. The breakdown in the collective structures for employment regulation, particularly collective bargaining, has led to growing insecurity and inequality among working people. At the workplace level of multinationals inequality is fostered by strategies of flexibilization and benchmarking which force trade unions to negotiate concessions regarding the working conditions of different workers. Trade unions are seeking effective responses to increasing labor market instability and inequality. The paper argues that the transnational regulation of employment relationships through the European Framework Agreements (EFAs) can serve the purpose of constraining benchmarking, while containing workplace inequality. Originality/value This paper offers an in-depth view that the EFAs can constrain the multinationals’ strategies of benchmarking and workplace inequality. This is because EFAs can potentially spread across countries the positive gains of local negotiations where unions are able to negotiate on employment protection to other local subsidiaries where unions may struggle to do so.

scholarly journals Succeeding in process standardization

2016 ◽  
Vol 22 (6) ◽  
pp. 1212-1246 ◽  
Author(s):  
Fatemeh Rahimi ◽  
Charles Møller ◽  
Lars Hvam
Keyword(s):  
Multinational Corporations ◽  
Enterprise Resource Planning ◽  
Management Strategy ◽  
Structural Characteristics ◽  
Resource Planning ◽  
International Management ◽  
Financial Control ◽  
Global Integration ◽  
Process Standardization ◽  
Content Type

Purpose The purpose of this paper is to explore the fit between process standardization and international management strategy of multinational corporations (MNCs) by assessing the compatibility between process standardization and corporate structural characteristics in terms of asset configuration and headquarters-subsidiary relationships. Design/methodology/approach First, after a literature review on MNCs’ strategy and process standardization, the study suggests two propositions on the fit between corporate international management strategy and process standardization. Second, to empirically examine the propositions, the study investigates the outcome of process standardization in three cases with different strategic and structural contexts. Third, using the propositions and empirical findings, the study proposes a framework for aligning process standardization with MNCs’ structural characteristics. Findings Process standardization has a higher degree of fit in MNCs pursuing global integration where process standardization parallels the need for coordinating interdependencies in the functional structure, and is consistent with the headquarters’ operational control over the subsidiaries. Process standardization has a lower degree of fit in MNCs seeking local responsiveness as process standardization disturbs the financial control relationship between the headquarters and subsidiaries and is less crucial for coordination as the subsidiaries contain the necessary coordination mechanisms. Originality/value The study provides in-depth understanding of how the international management strategy and consequent structural characteristics of MNCs affects process standardization in the course of a global enterprise resource planning implementation. The study proposes conditions of fit for aligning process standardization with asset configuration and headquarters-subsidiary relationships of an MNC.

Can companies buy legitimacy? Using corporate political strategies to offset negative corporate social responsibility records

2014 ◽  
Vol 7 (4) ◽  
pp. 318-336 ◽  
Author(s):  
Ekin Alakent ◽  
Mine Ozer
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Belief Systems ◽  
Public Image ◽  
Organizational Slack ◽  
Political Strategies ◽  
Content Type ◽  
Corporate Political Strategies ◽  
Corporate Social

Purpose – Organizational legitimacy is greatly influenced by firm corporate social responsibility (CSR) records. An organization with a poor CSR record can either try to improve its practices or attempt to manipulate institutional norms and belief systems in order to convince the society that its practices are acceptable. The authors argue that firms’ corporate political strategies (CPS) – attempts by firms to influence public policy outcomes in a favorable way – can be very effective in shaping legitimacy norms and offsetting negative public image. The purpose of this paper is to draw on institutional theory and propose that firms with negative CSR records consider investing in political strategies necessary in order to construct new legitimate standards in line with their strategies. Design/methodology/approach – The authors test the hypotheses on 348 manufacturing firms using data from “The Center for Responsive Politics.” MSCI (formerly known as KLD) and COMPUSTAT. Research methodology used to test hypotheses is hierarchical ordinary least square regression analysis. Findings – The authors find that firms with high CSR concerns invest more in CPSs. In addition, the results indicate that organizational visibility and organizational slack positively moderate this relationship. In other words, visible firms and firms with high organizational slack invest more in CPSs if they are facing CSR concerns compared to firms that are less visible and with less organizational slack. Research limitations/implications – In this paper, the authors focus on the corporate governance dimension of CSR. Although focussing on the negative corporate governance practices gives us an opportunity to have a more focused approach, there are other important aspects of CSR such as environmental practices, employment issues, and accounting practices that are not addressed in this study. Practical implications – This paper can serve as a testament to the value of investing in political strategies to the practitioners. The results indicate that firms can manage their image and reputation through political spending and this is especially true for firms that are more visible and have more organizational slack. Originality/value – Much of the previous literature explores the relationship between market factors such as financial status of the firm and political strategies. This paper contributes to the literature by showing that other non-market forces such as poor social standing can also motivate companies to invest in political strategies.

Ownership structure and OFDI by EMNES: the moderating effects of international experience and migrant networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changjun Yi ◽  
Yun Zhan ◽  
Jipeng Zhang ◽  
Xiaoyang Zhao
Keyword(s):  
Ownership Structure ◽  
Emerging Market ◽  
International Experience ◽  
State Ownership ◽  
Ownership Concentration ◽  
Moderating Effects ◽  
Content Type ◽  
Migrant Networks ◽  
Positive Effect ◽  
Heterogeneous Resources

PurposeThis study investigates the effect of ownership structure – ownership concentration and firm ownership – on outward foreign direct investment (OFDI) by emerging market multinational enterprises (EMNEs), and further explores the moderating effects of international experience and migrant networks on this relationship.Design/methodology/approachData of Chinese MNEs listed on Shenzhen and Shanghai stock exchanges between 2005 and 2016 are used. The empirical analysis is based on the negative binomial regression model.FindingsThe empirical results reveal a significant inverted-U relationship between ownership concentration and OFDI by EMNEs. State ownership is found to have a positive effect on OFDI by EMNEs. Both international experience and migrant networks strengthen the inverted-U relationship between ownership concentration and OFDI as well as the positive effect of state ownership on OFDI by EMNEs.Practical implicationsEMNEs need to maintain a moderate ownership concentration when conducting OFDI, and they are supposed to make full use of their own international experience and focus on migrant networks of the host country. Policy-makers in emerging economies need to better create a fair business environment for enterprises.Originality/valueCombining agency theory and the resource-based view, this study integrates ownership structure, firm-level heterogeneous resources – international experience and country-level heterogeneous resources – migration networks into a framework to study OFDI by EMNEs, which expands the scope of research in international business.

Labour productivity motivation framework for Iskandar Malaysia

2018 ◽  
Vol 8 (3) ◽  
pp. 293-304 ◽  
Author(s):  
Chukwuka Christian Ohueri ◽  
Wallace Imoudu Enegbuma ◽  
Ngie Hing Wong ◽  
Kuok King Kuok ◽  
Russell Kenley
Keyword(s):  
Financial Incentives ◽  
Construction Projects ◽  
Quantitative Research ◽  
Labour Productivity ◽  
Sampling Technique ◽  
Working Environment ◽  
Continuous Training ◽  
Content Type ◽  
Importance Index ◽  
Major Factors

Purpose The purpose of this paper is to develop a motivation framework that will enhance labour productivity for Iskandar Malaysia (IM) construction projects. The vision of IM development corridor is to become Southern Peninsular Malaysia’s most developed region by the year 2025. IM cannot realise this foresight without effective labour productivity. Previous studies have reported that the labour productivity of IM construction projects was six times lower than the labour productivity of Singapore construction projects, due to lack of motivation among IM labourers, and a shortage of local skilled labour. Therefore, there is a need to study how to motivate IM construction labourers, so as to increase their productivity. Design/methodology/approach A quantitative research method was used to collect data from IM construction skilled labourers and construction professionals, using two sets of questionnaire. The respondents were selected using a purposive sampling technique. In total, 40 skilled labourers and 50 construction professionals responded to the questionnaire survey, and the data were analysed using Statistical Package for Social Science software (version 22). Findings The analysis revealed the major factors that motivate labourers participating in IM construction projects. The factors were ranked hierarchically using Relative Importance Index (RII) and the outcome of the ranking indicated that effective management, viable construction practices, financial incentives, continuous training and development, and safe working environment were the most significant motivation strategies that positively influence IM construction labourers. Originality/value The study developed and validated a framework that can be used to boost the morale of IM construction labourers, so that their productivity can be increased. Implementation of the established motivation framework will also lead to career progression of IM construction labourers, based on the training elements in the framework. This career prospect will attract local skilled labourers to participate in IM construction projects.

scholarly journals Corporate Political Strategies in Weak Institutional Environments: A Break from Conventions

2019 ◽  
Vol 161 (4) ◽  
pp. 855-876
Author(s):  
Tahiru Azaaviele Liedong ◽  
Daniel Aghanya ◽  
Tazeeb Rajwani
Keyword(s):  
Resource Dependency ◽  
Emerging Countries ◽  
Policy Implications ◽  
Political Activity ◽  
Dark Side ◽  
Political Strategies ◽  
Corporate Political Activity ◽  
Corporate Political Strategies ◽  
Shed Light ◽  
Universal Application

Abstract There is a lack of research about the political strategies used by firms in emerging countries, mainly because the literature often assumes that Western-oriented corporate political activity (CPA) has universal application. Drawing on resource-dependency logics, we explore why and how firms orchestrate CPA in the institutionally challenging context of Nigeria. Our findings show that firms deploy four context-fitting but ethically suspect political strategies: affective, financial, pseudo-attribution and kinship strategies. We leverage this understanding to contribute to CPA in emerging countries by arguing that corporate political strategies are shaped by the reciprocity and duality of dependency relationships between firms and politicians, and also by advancing that these strategies reflect institutional weaknesses and unique industry-level opportunities. Importantly, we shed light on the muttered dark side of CPA. We develop a CPA framework and discuss the research, practical and policy implications of our findings.

scholarly journals Efficiency of Conditionally Attenuated Salmonella enterica Serovar Typhimurium in Bacterium-Mediated Tumor Therapy

mBio ◽  
2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Michael Frahm ◽  
Sebastian Felgner ◽  
Dino Kocijancic ◽  
Manfred Rohde ◽  
Michael Hensel ◽  
...  
Keyword(s):  
Salmonella Enterica ◽  
Tumor Targeting ◽  
Antitumor Effect ◽  
Treatment Options ◽  
Tumor Therapy ◽  
Therapeutic Benefit ◽  
Industrialized Countries ◽  
Content Type ◽  
Serovar Typhimurium ◽  
Therapeutic Molecules

ABSTRACTIncreasing numbers of cancer cases generate a great urge for new treatment options. Applying bacteria likeSalmonella entericaserovar Typhimurium for cancer therapy represents an intensively explored option. These bacteria have been shown not only to colonize solid tumors but also to exhibit an intrinsic antitumor effect. In addition, they could serve as tumor-targeting vectors for therapeutic molecules. However, the pathogenicS. Typhimurium strains used for tumor therapy need to be attenuated for safe application. Here, lipopolysaccharide (LPS) deletion mutants (ΔrfaL, ΔrfaG, ΔrfaH, ΔrfaD, ΔrfaP, and ΔmsbBmutants) ofSalmonellawere investigated for efficiency in tumor therapy. Of such variants, the ΔrfaDand ΔrfaGdeep rough mutants exhibited the best tumor specificity and lowest pathogenicity. However, the intrinsic antitumor effect was found to be weak. To overcome this limitation, conditional attenuation was tested by complementing the mutants with an inducible arabinose promoter. The chromosomal integration of the respective LPS biosynthesis genes into thearaBADlocus exhibited the best balance of attenuation and therapeutic benefit. Thus, the present study establishes a basis for the development of an applicably cancer therapeutic bacterium.IMPORTANCECancer has become the second most frequent cause of death in industrialized countries. This and the drawbacks of routine therapies generate an urgent need for novel treatment options. Applying appropriately modifiedS. Typhimurium for therapy represents the major challenge of bacterium-mediated tumor therapy. In the present study, we demonstrated thatSalmonellabacteria conditionally modified in their LPS phenotype exhibit a safe tumor-targeting phenotype. Moreover, they could represent a suitable vehicle to shuttle therapeutic compounds directly into cancerous tissue without harming the host.

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