Asset protection in multinational enterprises – where to now?

2014 ◽  
Vol 22 (4) ◽  
pp. 351-371
Author(s):  
Freya Smith
Keyword(s):  
Value Chain ◽  
Information Exchange ◽  
Multinational Enterprises ◽  
Limited Liability ◽  
Significant Shift ◽  
Profit Shifting ◽  
Content Type ◽  
Asset Protection ◽  
Automatic Information ◽  
Critical Issues

Purpose – This paper aims to shed light on the potential implications for asset protection planning in multinational enterprises (MNEs) from the Organisation for Economic Co-Operation and Development (OECD)’s work on base erosion and profit shifting (BEPS) and the global push towards increased transparency and automatic information exchange. Design/methodology/approach – An examination of the academic literature across a range of areas of the law relevant to MNEs and an analysis of the risks facing MNEs and the significance of asset protection in managing these risks. An examination of the OECD’s work on BEPS and automatic information exchange and implications for asset protection strategies utilised by MNEs with a particular focus on the critical issues of disclosure, ownership and control. Findings – The full extent to which MNEs will be affected by the OECD’s work on BEPS remains unknown. Early signs indicate a significant shift in the focus of tax rules away from the pricing of specific transactions between related entities to the total global value chain of an MNE opening the door for more widespread adoption of enterprise liability and for states to obtain a complete view of MNE tax and asset protection planning, potentially including previously impenetrable trusts and limited liability companies. Originality/value – This paper is one of the first to provide an analysis of the importance of asset protection to MNEs and the potential risks arising for asset protection planning in MNEs from the OECD’s work on BEPS and automatic information exchange.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

scholarly journals The mirage of upgrading local automotive parts suppliers through the creation of vertical linkages with MNEs in developing economies

2015 ◽  
Vol 11 (3/4) ◽  
pp. 301-318 ◽  
Author(s):  
Zaheer Khan ◽  
Yong Kyu Lew ◽  
Rudolf R. Sinkovics
Keyword(s):  
Technology Transfer ◽  
Automotive Industry ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Developing Economies ◽  
Illustrative Case ◽  
Content Type ◽  
Vertical Linkages ◽  
Automotive Parts ◽  
Organizational Linkages

Purpose – This paper aims to explore inter-organizational linkages and the extent of technology transfer and develop propositions related to the linkages, technology transfer and upgrading of local suppliers in developing economies. Design/methodology/approach – The authors conduct a literature review and 50 exploratory interviews with senior managers and policymakers in the automotive parts industry of Pakistan. Findings – The data revealed that three major international joint ventures (IJVs) established in the automotive industry of Pakistan have created significant vertical linkages. However, advanced high-level technology transfer has not actually taken place due to the following reasons: IJV parents are reluctant to engage in technology transfer, there is limited support from local government and local suppliers exhibit limited improvement in their innovation capability. The vertical linkage creation and low-medium technology transfer contributes to incremental product upgrading of the local suppliers, rather than their process upgrading and insertion into the global value chain (GVC). Research limitations/implications – This research looked at technology interactions between IJVs and local tier-1 suppliers (not tier 2 and tier 3) in Pakistan’s automotive industry. This paper’ illustrative case indicates what is required for local suppliers in developing economies to make breakthrough upgrades of their products and processes through their vertical linkages with foreign-owned indigenous firms. Originality/value – Unlike prior research, the authors investigate the role of inter-organizational linkages and the extent of technology transfer, and how these affect local suppliers’ product/process upgrading in the local value chain. Highlighting the illusion of upgrading in the GVC, this paper reveals the difficulties involved in upgrading suppliers’ positions (e.g. insertion and functional upgrading in the GVC) through their vertical linkages with foreign multinational enterprises in developing economies. The illusion of upgrading sheds a rather disappointing light on the position of developing country supplier vis-à-vis their powerful international partners.

Transforming Burundi’s coffee sector through strategic value chain investments

2017 ◽  
Vol 7 (3) ◽  
pp. 218-230 ◽  
Author(s):  
Aniseh Bro ◽  
Daniel C. Clay
Keyword(s):  
Value Chain ◽  
Future Research ◽  
Significant Shift ◽  
Processing Technologies ◽  
Content Type ◽  
Strategic Value ◽  
Specialty Coffee ◽  
Sustainable Trade ◽  
Coffee Sector

Purpose The purpose of this paper is to examine the early stages of the transition to specialty coffee in Burundi and the role of an agribusiness support program as a catalyst for this transition. Design/methodology/approach This study uses two years of panel data (2007 and 2012) to analyze changes in technology adoption among coffee washing stations (CWSs) and how the adoption of improved technologies affects coffee quality. Findings Programmatic investment in Burundi’s coffee value chain resulted in a significant shift in adoption of processing technologies by CWSs. Producers who processed at these stations saw a significant increase in the quality of their coffee and forged sustainable trade relationships with international buyers. Research limitations/implications Future research should investigate the incentives and barriers of producers to invest in production boosting practices. Originality/value This is one of the first empirical papers that analyzes Burundi’s transition from ordinary to specialty coffee and how programmatic investments in improved technologies has helped to make the change possible.

scholarly journals Gaps and barriers along the North Carolina agri-food value chain

2016 ◽  
Vol 118 (2) ◽  
pp. 301-317 ◽  
Author(s):  
Carol S. Kline ◽  
Leah Elizabeth Joyner ◽  
Jon F Kirchoff ◽  
Alleah Crawford ◽  
Stephanie Jilcott Pitts ◽  
...  
Keyword(s):  
North Carolina ◽  
Value Chain ◽  
Food Distribution ◽  
Content Type ◽  
The North ◽  
Critical Issues ◽  
Food Distributors ◽  
Two Stages ◽  
The Impact ◽  
Food Value

Purpose – The purpose of this paper is twofold: first, to formulate an exhaustive list of the issues, gaps, and barriers at each level of the agri-food value chain in North Carolina (NC), and second, to identify the issues of greatest importance to its members. Design/methodology/approach – This research employed the Delphi technique in two stages of input. The first round of input was designed to create a comprehensive list of issues for each of nine “stages” of the agri-food value chain. In round two, the issues were prioritized. Findings – The top ten responses of each stage were aggregated into themes that represent the most critical issues identified by respondents: connectedness within the value chain, access to markets and marketing, affordability/availability of food and food distribution, farm profitability, societal awareness, and education about healthy, local food, and supporting institutions. Originality/value – The findings could be used by practitioners to inspire innovation in food-related products, programs, processes, organization, and marketing. The findings can help farmers, institutions, food distributors, policy makers, and other members of the agri-food value chain to make decisions about food distribution and access in NC and in other states facing similar issues and circumstances. The findings of this research also have further reaching implications, such as the connectivity of members along the agri-food value chain, the impact of a strong agri-food value chain on agritourism and the potential value of state marketing initiatives.

Technological entrepreneurship in India

2017 ◽  
Vol 9 (1) ◽  
pp. 65-84 ◽  
Author(s):  
Pamela Meil ◽  
Hal Salzman
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Service Providers ◽  
Knowledge Work ◽  
Business Environment ◽  
Innovative Technology ◽  
Value Chains ◽  
Individual Risk ◽  
Content Type ◽  
Development Trajectories

Purpose Is the rise of the Indian software industry simply another Asian state-dominated industrial growth story or is India distinctive, an economy where small technology entrepreneurs also find niches for development and can be drivers of innovation? Research has focused on the large integrated Indian and international service providers. This study examines the opportunity for growth among smaller innovative technology entrepreneurial firms. Two areas of inquiry are: What factors have been responsible for spurring growth in the Indian IT industry? What type of work is being carried out at Indian firms and is this profile changing? This paper aims to examine the emergence of technology entrepreneurs, particularly in terms of their links to multinational firms and their role and position in global value chains. The paper takes a multi-level approach to understanding development trajectories in the IT sector in India: a global value chain approach to the extent that company processes are seen in their larger networked context across organizations and an institutional approach in terms of state policies that influence the creation of infrastructure that, in turn, shapes organizational development trajectories. Additionally, it examines the role of the various actors within IT sector organizations – the workers, the managers and, in the case of the small companies in our sample, the owners – on the outcome of growth trajectories in the Indian IT sector. We find that the various levels of change and policy all contribute to the outcome in company trajectories: the dominance of multinational enterprises on the market, the entrepreneurial vision and survival strategies of returned technology expatriates, and the changing policies of the government in promoting indigenous business. Design/methodology/approach Qualitative research interviews; comparative case study; literature review; multi-tier analysis. Findings The technology entrepreneurial development in India appears to represent quite a distinctive path in terms of both firm development and broader economic development. It is focused on the IT sector, in which high skill “knowledge work” is carried out and which has been able to develop despite lack of basic infrastructure (roads and reliable electricity). Research limitations/implications After the opening up of the business environment to large Western multinational enterprises (MNEs), it was difficult for indigenous Indian entrepreneurs to compete in innovative product development markets. Developing such companies depended on individual risk taking, as no specific infrastructure existed for niche production. However, the knowledge base and innovation clusters did offer opportunities for obtaining contracts. The Indian entrepreneurs did have to make a lot of compromises about defining their business and the tasks they could undertake. More research is needed on the paths and development opportunities for these smaller Indian-owned firms. Practical implications Unique opportunities are emergent and defy easy policy prescriptions, other than precluding change that does not foreclose emergent possibilities (e.g. such as strong state controlled business development). Social implications Indian-owned innovative companies, although having difficulties competing with large Indian and Western MNEs, do put pressure on these MNEs to move work up the value chain, thereby providing more interesting and challenging opportunities for Indian knowledge workers. Originality/value This paper provides a unique company-level perspective about entrepreneurialism in the Indian software sector from the perspective of different actors in the process. It then links this company-level perspective to a larger context both in terms of trajectories of development at the macro level, as well as the role that the company’s place in multinational value chains has in its development perspectives. It gives a special insight into the motivations and obstacles facing entrepreneurs in India’s dynamic software sector.

The limits and promises of embeddedness as a strategy for social value creation

2019 ◽  
Vol 16 (1) ◽  
pp. 100-115 ◽  
Author(s):  
Addisu A. Lashitew ◽  
Rob van Tulder
Keyword(s):  
Value Creation ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Social Value ◽  
Small Scale ◽  
Intermediate Step ◽  
Market Exchange ◽  
Formal Institutions ◽  
Content Type ◽  
Social Value Creation

Purpose Multinational enterprises (MNEs) attempting to create social value in base of the pyramid (BoP) economies are encumbered by unique market and institutional barriers. To overcome these challenges, BoP scholars have advocated the strategy of using embeddedness as a replacement for inefficient formal institutions. Reliance on informal social ties for coordinating market exchange, however, leads to costly investments, exposure to opportunism and the creation of nontransferable capabilities. This paper aims to investigate these issues. Design/methodology/approach The authors argue that embeddedness should be used as an intermediate step toward developing more enduring formal institutions rather than as a replacement for them. Findings The authors put forward the notion of proto-institutions as a useful concept for exploring how MNEs can engage in co-designing efficient and inclusive institutional forms aimed at engendering long-term social value creation. Originality/value The authors identify three institutional fields wherein MNEs can leverage social embeddedness to develop proto-institutions that are potentially transferable to become formal institutions. First, MNEs can build governance institutions that can enhance coordination among local actors. Second, MNEs can experiment with small-scale change and adaptation of market institutions that reduce transaction costs and facilitate market exchanges. For example, improved institutional practices in value chain governance can boost business performance while also improving the livelihoods of supply chain partners. Finally, the authors discuss the potential for developing favorable socio-cultural institutions by introducing new principles of organizing or educational practices.

scholarly journals Global value chains, rising power firms and economic and social upgrading

2015 ◽  
Vol 11 (3/4) ◽  
pp. 319-339 ◽  
Author(s):  
Joonkoo Lee ◽  
Gary Gereffi
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Production Systems ◽  
Value Chains ◽  
Content Type ◽  
Recent Developments ◽  
Alternative Markets ◽  
Economic Upgrading ◽  
Rising Power ◽  
Social Upgrading

Purpose – The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns of global trade, investment and production, and its impact on economic and social upgrading. It aims to illuminate how GVCs can advance our understanding about MNEs and rising power (RP) firms and their impact on economic and social upgrading in fragmented and dispersed global production systems. Design/methodology/approach – The paper reviews the GVC literature focusing on two conceptual elements of the GVC approach, governance and upgrading, and highlights three key recent developments in GVCs: concentration, regionalization and synergistic governance. Findings – The paper underscores the complicated role of GVCs in shaping economic and social upgrading for emerging economies, RP firms and developing country firms in general. Rising geographic and organizational concentration in GVCs leads to the uneven distribution of upgrading opportunities in favor of RP firms, and yet economic upgrading may be elusive even for the most established suppliers because of power asymmetry with global buyers. Shifting end markets and the regionalization of value chains can benefit RP firms by presenting alternative markets for upgrading. Yet, without further upgrading, such benefits may be achieved at the expense of social downgrading. Finally, the ineffectiveness of private standards to achieve social upgrading has led to calls for synergistic governance through the cooperation of private, public and social actors, both global and local. Originality/value – The paper illuminates how the GVC approach and its key concepts can contribute to the critical international business and RP firms literature by examining the latest dynamics in GVCs and their impacts on economic and social development in developing countries.

Information exchange in vendor managed inventory

2007 ◽  
Vol 37 (2) ◽  
pp. 131-147 ◽  
Author(s):  
Astrid Vigtil
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Information Sharing ◽  
Value Chain ◽  
Information Exchange ◽  
Supply Chain Collaboration ◽  
Vendor Managed Inventory ◽  
Content Type ◽  
Sales Forecasts ◽  
Multiple Case

PurposeVendor managed inventory (VMI) is a model for supply chain collaboration gaining ground in multiple industries around the world. Forecasting is one of several means to predict future demand. The purpose of this paper is to identify what types of advance demand data would be valuable to the supplier for successful replenishment planning in cases of VMI, frequency and means of information exchange.Design/methodology/approachThe work is based on a literature review and a multiple case study where both successful and unsuccessful VMI collaboration programs are studied. In all cases, the supplier or the customer was a manufacturer. The discussion is based on case‐observations of causes and effects that are compared with existing literature.FindingsIt is found that current inventory status and sales forecasts are the most important kinds of information to be made available to the supplier in a VMI relationship. This also conforms with the general perception of the literature review. Some kinds of information are found valuable while other kinds are found not to be of importance. It was also found that kinds of information differ with the type of supply chain activities being performed by the customer, i.e. there is a different kind of information recommended when the customer makes to stock than when he is a wholesaler or a manufacturer making to order. This observation has not been discussed in the literature reviewed.Research limitations/implicationsThe value of generalization from case studies is subject to general discussion. The cases applied in this research encompass Norwegian suppliers and dyads at the upstream end of the value chain. Geographically related cultural differences might limit the applicability of this work.Originality/valueThe findings support the existing literature and this paper takes a practitioner's perspective on information sharing. The aim is to offer a comprehensive yet educational view of information sharing and VMI.

scholarly journals The multiplicity of international corporate social responsibility standards

2019 ◽  
Vol 27 (4) ◽  
pp. 397-426 ◽  
Author(s):  
Luc Fransen ◽  
Ans Kolk ◽  
Miguel Rivera-Santos
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Future Research ◽  
Global Value Chain ◽  
Content Type ◽  
New Perspective ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to examine the multiplicity of corporate social responsibility (CSR) standards, explaining its nature, dynamics and implications for multinational enterprises (MNEs) and international business (IB), especially in the context of CSR and global value chain (GVC) governance. Design/methodology/approach This paper leverages insights from the literature in political science, policy, regulation, governance and IB; from the own earlier work; and from an inventory of CSR standards across a range of sectors and products. Findings This analysis’ more nuanced approach to CSR standard multiplicity helps distinguish the different categories of standards; uncovers the existence of different types of standard multiplicity; and highlights complex trends in their evolution over time, discussing implications for the various firms targeted by, or involved in, these initiatives, and for CSR and GVC governance research. Research limitations/implications This paper opens many avenues for future research on CSR multiplicity and its consequences; on lead firms governing GVCs from an IB perspective; and on institutional and market complexity. Practical implications By providing overviews and classifications, this paper helps clarify CSR standards as “new regulators” and “instruments” for actors in business, society and government. Originality/value This paper contributes by filling gaps in different existing literatures concerning standard multiplicity. It also specifically adds a new perspective to the IB literature, which thus far has not fully incorporated the complexity and dynamics of CSR standard multiplicity in examining GVCs and MNE strategy and policy.

Remember the balance of forces

2020 ◽  
Vol 27 (4) ◽  
pp. 1379-1388
Author(s):  
Akira Matsuoka
Keyword(s):  
Public Sector ◽  
Multinational Corporations ◽  
Multinational Enterprises ◽  
Tax Avoidance ◽  
Profit Shifting ◽  
Content Type ◽  
The Public ◽  
Cost Inefficiency ◽  
Balance Of Forces ◽  
Corporate Social

Purpose The purpose of this paper is to warn policymakers, by examining certain aspects of policy, possibly overlooked, against overestimating the power of corporate social responsibility (CSR) idea to inhibit tax avoidance by the multinationals. Design/methodology/approach By examining, with narrative and qualitative means, existing insights such as ones with regard to the inefficiency of the public sector. Findings Implication that the following three factors could not co-exist: promoting CSR activities, which include moral tax payment by the multinational corporations; requiring the multinationals to refrain from immorally reducing effective tax rates and keeping the current level of public utilities. Originality/value To sound an alarm to tax policymakers who are particularly addicted to the base erosion and profit shifting by multinational enterprises recently by this new implication mixing up with existing findings with regard to the CSR idea and cost-inefficiency character of the public sector activities.

Sign in / Sign up

Export Citation Format

Share Document