scholarly journals Open for business in a closed world? Managing MNE nonmarket strategy in times of populism and geopolitical uncertainty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George O. White III ◽  
Tazeeb Rajwani ◽  
Thomas C. Lawton
Keyword(s):  
International Business ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Multinational Enterprise ◽  
Special Issue ◽  
Global Risk ◽  
Content Type ◽  
Nonmarket Strategy ◽  
Closed World ◽  
Nonmarket Strategies

Purpose This paper aims to consider how multinational enterprises are increasingly augmenting their international strategies with insights on, and approaches to, external stakeholders and nonmarket dynamics. The rise of populism and increased geopolitical uncertainty have accelerated these efforts, particularly for business leaders anticipating and engaging external agents, events, and issues that challenge the strategic objectives of their enterprises. Design/methodology/approach This paper aims to explain why the increased preponderance of populism and geopolitical uncertainty are simultaneously posing an existential threat to the post-Cold War global economy predicated on free trade and (relatively) open borders, and consequently, challenging the structures and strategies of international business. Findings We provide an overview of the four papers in our special issue, and consider how each advances insights on how multinational enterprises effectively navigate the nonmarket uncertainties of the contemporary global economy. We then advance four important areas for international business research around multinational nonmarket strategies: (i) resilience and legitimacy; (ii), diversification; (iii), market and nonmarket strategy integration; and (iv), institutional arbitrage. Research limitations/implications We anticipate that nonmarket strategy scholars can build on these themes to assess how nonmarket strategies can better enable multinational enterprises to survive and thrive in an age of heightened global risk and uncertainty. Originality/value This paper and the related special issue provide new theoretical insights by bringing attention to the relatively under-researched realm of multinational enterprise nonmarket strategy, particularly in populist contexts and during periods of geopolitical uncertainty. We identify four promising domains – resilience and legitimacy, diversification, the integration of market and nonmarket strategy, and institutional arbitrage – for international business scholars investigating nonmarket strategy to consider. We hope that our paper, as well as other papers in this special issue, provide further momentum to this growing area of research.

An organismic approach to multinational enterprise failure

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeong-Yang Park ◽  
Yong Kyu Lew ◽  
Byung Il Park
Keyword(s):  
International Business ◽  
Delphi Technique ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Multinational Enterprise ◽  
Institutional Pressures ◽  
Content Type ◽  
Institutional Legitimacy ◽  
Foreign Divestment ◽  
Market Strategies

Purpose The purpose of this paper is to answer why some multinational enterprises (MNEs) fail within the international business (IB) domain. Design/methodology/approach Conceptually, the study takes an organismic approach to MNE failure. Methodologically, it adopts an elite interview approach derived from the Delphi technique. Respondents are 39 IB and strategic management academics. Findings The paper finds that MNE failure is rooted in strategic leadership and capabilities (i.e. internal deterioration of organizational resources and strategies) and institutional pressures and differences, and these factors lead to deterioration of institutional legitimacy for an MNE. Originality/value The paper conducts a review of the firm failure and foreign divestment literature and undertakes an organismic approach to the analysis of MNE failure in the IB context. The paper provides useful insights on developing and implementing both market and non-market strategies for overcoming MNE internationalization failure.

scholarly journals Actors, Structure, and Processes: A Review and Conceptualization of Global Work Integrating IB and HRM Research

2018 ◽  
Vol 45 (2) ◽  
pp. 359-383 ◽  
Author(s):  
B. Sebastian Reiche ◽  
Yih-teen Lee ◽  
David G. Allen
Keyword(s):  
Human Resource ◽  
International Business ◽  
Scientific Community ◽  
Multinational Enterprise ◽  
Future Research ◽  
Special Issue ◽  
Global Work ◽  
Work Done ◽  
Advance Knowledge ◽  
Cross Fertilization

As organizations increasingly fulfill their customer needs by getting their work done globally, there is a pressing need for the scientific community to further advance knowledge on global work, especially in terms of how to better conceptualize and integrate it. A particular opportunity for such development involves the cross-fertilization between the international business (IB) and human resource management (HRM) literatures, which serve as the focal domains to study global work phenomena but have treated global work largely as separate research streams. We therefore edited a special issue to contribute to a more integrative understanding of various aspects of global work across both domains. In this opening article, we review existing research on global work in the multinational enterprise from both IB and HRM perspectives. Subsequently, we present a shared conceptualization of global work that helps integrate theoretical and empirical research in both fields. We then introduce the articles in this special issue, before developing an integrative agenda for future research on global work.

Understanding resource commitment to R&D in multinational enterprises: a novel conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niels le Duc
Keyword(s):  
Research And Development ◽  
Conceptual Framework ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
External Environment ◽  
Multinational Enterprise ◽  
Added Value ◽  
Content Type ◽  
Resource Commitment ◽  
Insight Into

Purpose This paper aims to introduce and advocate the concept of resource commitment to better understand multinational enterprise (MNE) research and development (R&D) behavior. Design/methodology/approach Adopting a theory adaptation research design, this paper assesses the characteristics and antecedents associated with varying resource commitment positions. It does so in relation to MNE R&D activities, considering their importance to firm competitiveness and the recent increases in the number of locations and innovative activities a firm might choose to invest in. Findings The paper presents a framework showing that differences in resource commitment are more nuanced than expected. The evaluation of antecedents shows that the external environment, the purpose of R&D activities and firm experience influence the resource commitment position of a firm’s R&D activities. Originality/value The paper provides a pathway toward understanding of MNE R&D behavior, explaining observable differences in resource and commitment levels of R&D units. The presented framework offers MNE managers insight into when to adopt which resource commitment positions. It offers policymakers insights into the type of activities and the companies they need to attract to maximize the added value of firm’s investments in their country/region.

Is there a commendable regime for combatting money laundering in international business transactions?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrew Emerson Clarke
Keyword(s):  
International Business ◽  
Money Laundering ◽  
Global Economy ◽  
Task Force ◽  
Academic Research ◽  
State Level ◽  
Content Type ◽  
The Usa ◽  
Enforcement Mechanisms ◽  
The Uk

Purpose Money laundering and grand business corruption continue to plague the global economy, accounting for 2%-5% of the global gross domestic product. Illicit funds, produced through grand corruption, are laundered using complex layering schemes that cloak them in legitimacy by concealing their origins. Lamentably, weak anti-money laundering (AML) frameworks promote economic instability, unjust commercial advantages and organized crimes. This study aims to highlight the need for comprehensive anti-corruption and AML frameworks by critiquing the exploitable gaps in the global AML regime created by heterogeneous state-level AML regimes to date. Design/methodology/approach This study welcomes the United Nations Convention against Corruption (UNCAC) and the financial action task force (FATF) recommendations but underscores the limitations of their effectiveness by investigating state-level enforcement mechanisms to determine these instruments’ true impact or lack thereof. The mutual evaluation reports (MERs) and state-level AML regimes in the UK, the USA and Canada are analyzed to illustrate the distinct implementation of international soft law in domestic legislation. Findings This study finds that UNCAC and the FATF recommendations are pivotal steps towards the establishment of a global AML regime for international business, albeit, one that remains imperfect because of the inconsistency of state-level AML frameworks. Consequently, international cooperation is needed to navigate and improve the discrepancies in varied AML legislation. Originality/value The author provides an in-depth and balanced analysis of current state-level AML developments and relies upon the recent 2016-2018 MERs to indicate the successes and flaws of various AML legislation. Therefore, this critique may guide stakeholders to construct robust AML frameworks and contributes to academic research in AML.

Dicoma Corporation: challenges for future growth

2019 ◽  
Vol 9 (3) ◽  
pp. 1-22
Author(s):  
Armando Borda ◽  
Carlos Cordova ◽  
Juan Carlos Leon
Keyword(s):  
Learning Outcomes ◽  
International Business ◽  
Early Stage ◽  
Business Students ◽  
Multinational Enterprise ◽  
International Strategy ◽  
International Expansion ◽  
Content Type ◽  
Business Executive ◽  
Academic Level

Learning outcomes The learning outcomes are as follows: students will identify the reasons for a firm to internationalize and its specific internationalization entry mode; students will distinguish how to follow the client and how physic distance strategies work; students will analyze a host country’s external environment using the PESTEL framework, and they will analyze the international strategies followed by a multinational enterprise using the integration-responsiveness framework as well. Case overview/synopsis The authors explore the case of DICOMA Corporation, a Costa Rican multinational enterprise with presence in five countries. Adrian Sanchez, who is Dicoma’s president, needs to craft an international strategy to increase the international sales in the foreign markets where the firm operates. The company may follow two paths. On the one hand, Dicoma can adopt the strategy of following its major clients to expand overseas, which will lead to the opening of operations in more countries, but making the foreign sales highly dependent on these types of partnerships. This has been so far the path pursued by Dicoma in its international expansion. On the other hand, Dicoma can opt to focus on increasing commitments in the existing international markets where it already has operations by capturing new clients in those locations but scarifying the potential business opportunities to enter into other countries in partnership with its major clients. Complexity academic level Post-graduate early stage business students enrolled in programs such as Master of Business Administration, Master of Management, Master of International Business, executive education programs, among others. Supplementary materials Teaching notes are available upon request for educators only. These teaching notes should be shared solely with the instructor and students should not have access to. Please contact your library to gain login or email [email protected] to request teaching notes. Subject code CSS 5: International Business.

The Oxford Handbook of International Business

2009 ◽  
Keyword(s):  
South America ◽  
Human Resource ◽  
International Business ◽  
Multinational Enterprises ◽  
Relevant Literature ◽  
Multinational Enterprise ◽  
Transitional Economies ◽  
Business Strategies ◽  
The Political ◽  
Business Systems

The Oxford Handbook of International Business contain articles by distinguished scholars in the field of international business. The authors are all authorities on their chosen topics and have been active as leaders in the Academy of International Business. Their articles survey and synthesize relevant literature of recent years. The book is split into five major sections, providing comprehensive coverage of the following areas: the history and theory of the multinational enterprise; the political and policy environment of international business; strategies of multinational enterprises; the financial areas of the multinational enterprise (marketing, finance and accounting, Human Resource Management [HRM], and innovation); and business systems in Asia, South America, and the transitional economies.

Re-examining regional borders and the multinational enterprise

2015 ◽  
Vol 23 (4) ◽  
pp. 374-394 ◽  
Author(s):  
Ruth V. Aguilera ◽  
Ricardo Flores ◽  
Jin Uk Kim
Keyword(s):  
International Business ◽  
Design Methodology ◽  
Multinational Enterprise ◽  
Future Research ◽  
Concerted Effort ◽  
Border Effects ◽  
Content Type ◽  
Distance Effects ◽  
Internationalization Strategy ◽  
Oli Paradigm

Purpose – The purpose of this paper is to critically assess the theoretical underpinnings and extant progress of the research on regional multi-national enterprises (MNEs) and offer a blueprint for future research by re-conceptualizing how (regional) boundaries relate to the international diversification of MNEs. Design/methodology/approach – The paper integrates key insights from the theory of the regional MNE and economic geography to re-orient the treatment of regional borders within international business (IB) literature. Findings – The paper suggests that the (L) component within the ownership location and internalization (OLI) paradigm should be disaggregated into continuous “distance effects” and discrete “border effects”. Within this rubric, regional borders represent discrete border effects that generate discontinuities that are permeable, fluid and firm specific. Such reconceptualization opens up avenues for future research and more tightly integrates the research on regional MNEs with other research streams. Research limitations/implications – IB scholars need to make concerted effort to think of regions as one among several parameters in studying the strategy and structure of MNEs. A stronger focus on internal processes and mechanisms elucidating the main drivers of MNEs strategies is needed. Originality/value – The paper offers innovative ways in which future research can advance the study of how regions matter in the internationalization strategy of MNEs.

scholarly journals Unravelling processes of alliance capability development: longitudinal processual insights from an emerging country multinational enterprise

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijay Pereira ◽  
Swetketu Patnaik ◽  
Mohammad Roohanifar ◽  
Ram Baliga
Keyword(s):  
Multinational Enterprises ◽  
Multinational Enterprise ◽  
Internal Communication ◽  
Capability Development ◽  
Organizational System ◽  
Content Type ◽  
Study Approach ◽  
Complex Processes ◽  
Biopharmaceutical Company ◽  
Emerging Country

PurposeThe purpose of this paper is to explore and unbundle the complex processes underpinning development of alliance capabilities, particularly in the context of emerging country multinational enterprises. More specifically, this paper focuses on how firms internalize and translate knowledge generated from experiences gained by participating in international collaborations.Design/methodology/approachThe authors adopt an exploratory case study approach to undertake in-depth processual analysis of alliance capability development in an Indian biopharmaceutical company. The authors focused their analysis on the initial four international alliances the company formed and identified key elements pertaining to alliance capabilities that the company internalized and those that it could not, as this was key in understanding alliance capability.FindingsThe research shows that based on experiences from previous alliances, the Indian organization was able to overhaul its negotiation and governance designing processes and practices as well as made robust changes to its internal communication and coordination practices. Interestingly, the company organization, however, did not make any significant changes to its processes and practices regarding partner selection.Practical implicationsThe results from our study can be used by managers to develop processes and practices when it comes to developing alliance capabilities.Originality/valueThe paper is novel, as it addresses two specific gaps in the nascent alliance capability literature. First, it provides insights on how different constituent elements/aspects of alliance capability actually develop and integrate within the organizational system over time, and in the process, the paper identifies that some aspects are better internalized as compared to other aspects. Second, by focusing the attention on an Indian biopharmaceutical company, the authors attempt to address a gap in alliance capability development research, which has been neglected in emerging country multinational entities.

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.

scholarly journals Corporate Governance And A Paradigm Strategy By Multinational Enterprises In Emerging Markets

2021 ◽  
Vol 06 (11) ◽  
Author(s):  
Obianuju Anyachebelu ◽  
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
International Business ◽  
Multinational Enterprises ◽  
Multinational Enterprise ◽  
Political Influence ◽  
Qualitative Investigation ◽  
Information Asymmetries ◽  
Interest Management ◽  
Skilled Workforce

This qualitative investigation meticulously identified challenges to corporate governance in operations of Multinational Enterprises (MNEs) in diverse situational positions in emerging markets. These challenges are weak macro institutions, strict government interest and influence, over formalized institutional structure, and overbearing political influence and the obvious; information asymmetries. A flexible mixed allegiance paradigm strategy was identified. It provides alignment of diversities and equilibrium based on micro operational efficacies of the multinational enterprise which are experienced and skilled workforce, related to locality of interest, management of loyalty, trust and negotiation hinged on acceptable agreements to member countries. Trust is emphasized as important for international business.

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