scholarly journals Subsidiary Initiative Taking in Multinational Corporations: The Relationship between Power and Issue Selling

2016 ◽  
Vol 37 (9) ◽  
pp. 1249-1270 ◽  
Author(s):  
Christoph Dörrenbächer ◽  
Jens Gammelgaard
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.


2015 ◽  
Vol 22 (2) ◽  
pp. 278-296 ◽  
Author(s):  
Jasmine Tata ◽  
Sameer Prasad

Purpose – Organizations are implementing sustainability initiatives in different countries with varied socio-cultural systems. The literature on sustainability, however, does not present a clear picture of how national culture can influence interpretations of the meaning of sustainability and how these differences in interpretation can result in different sustainability practices. The purpose of this paper is to build upon the current literature by identifying mechanisms (i.e. sustainability beliefs and perceptions) that mediate the relationship between national cultural values and organizational sustainability initiatives. Design/methodology/approach – The authors examine the literature on culture and sustainability practices, and develop a conceptual model that identifies how cultural values influence the sustainability initiatives of organizations. Several propositions are identified that specify relationships among the constructs, and guidelines are provided for testing the model in future research. Findings – The model posits that national culture influences sustainability beliefs and perceptions, which in turn influence the quantity and scope of sustainability initiatives. The relationship between sustainability beliefs and organizational sustainability initiatives is moderated by sustainability orientation and organizational capacity. Originality/value – The model can help researchers and practitioners better understand the meaning of sustainability in the context of international business by identifying the mechanisms that explain the link between culture and sustainability. It can also help researchers generate hypotheses for future research. Finally, the model can guide multinational corporations attempting to drive sustainability programs through their subsidiaries as well as international developmental agencies trying to develop programs in partnership with local non-governmental organizations (NGOs).


Author(s):  
Frederick Lehmann ◽  
Ana Teresa Tavares-Lehmann

This chapter examines transparency in relation to inward foreign direct investment (FDI), particularly inward investment-focused policies and incentives. It begins by reviewing the literature on transparency and inward investment incentives before discussing some of the merits of transparency based on its effects on the quantity and quality as well as the process by which FDI is attracted. It then considers the distinction between transparency in norms versus transparency in processes and how these differences affect FDI attraction. It also explores multilevel transparency and its impact on inward investment, along with multiparty transparency and its effect on FDI. The chapter concludes by focusing on the relationship between multinational corporations and host countries.


2015 ◽  
Vol 12 (02) ◽  
pp. 1550011 ◽  
Author(s):  
Nan Song ◽  
Jinping Zhu ◽  
Jonas Rundquist

With the development of globalization, companies will need worldwide resources for R&D. Multinational corporations (MNCs) will rely on their subunits located in different countries for R&D. As a result, knowledge transfer between headquarters and subunits or among subunits will be crucial for MNCs to operate their R&D activities. This study explores the relationship between knowledge transfer and R&D operations, using a qualitative research approach including four multinational companies. We conducted a cross-case analysis connecting four R&D configurations and two knowledge transfer mechanisms: expatriate management policy and communication frequency. Results show that both transfer mechanisms are very important for MNCs for the management of knowledge transfer in global R&D operations. However, each of these mechanisms will need a different focus depending on R&D strategy and configuration. The paper summarizes recommendations for managers as drawn from these insights.


Author(s):  
Naoki Ando ◽  
Yongsun Paik

Purpose – The purpose of this paper is to examine the relationship between foreign subsidiary staffing and subsidiary performance by focussing on two staffing practices: first, the ratio of parent country nationals (PCNs) to foreign subsidiary employees and second, the number of PCNs assigned to the foreign subsidiary. Design/methodology/approach – Hypotheses predicting curvilinear relationships between the assignment of PCNs and subsidiary performance are tested using a panel data set consisting of 4,858 foreign subsidiaries of Japanese multinational corporations (MNCs). Findings – The results demonstrate that the two staffing practices have different effects on subsidiary performance. The ratio of PCNs to foreign subsidiary employees has an inverted U-shaped relationship with subsidiary performance, while the number of PCNs assigned to the subsidiary has a linear and negative effect on subsidiary performance. Research limitations/implications – The results of this study are subject to limitations. First, the sample used in this study consists solely of the foreign subsidiaries of Japanese firms. This research design limits the generalizability of the findings of this study. Second, other decisions related to subsidiary staffing such as the ratio of PCNs in the subsidiary's top management team need to be examined to advance understandings of the relationship between subsidiary staffing and subsidiary performance. Practical implications – MNCs need to identify the appropriate number of PCNs at which they can achieve the optimal trade-off with the PCN ratio to enhance the competitiveness and the performance of a foreign subsidiary. In doing so, they need to take into consideration that an increase in the number of PCNs has an immediate negative effect on the workplace morale of host country nationals. Originality/value – This study incorporates two staffing practices into its analyses and shows that they have different implications for subsidiary performance. The results suggest that focussing on one staffing practice alone limits understanding of the complex relationship between foreign subsidiary staffing and subsidiary performance.


2005 ◽  
Vol 47 (02) ◽  
pp. 77-102 ◽  
Author(s):  
Richard C. Jones

Abstract Mexico and Ireland, traditionally countries of emigration, experienced pronounced multinationalization of their economies during the 1990s. In Ireland net emigration declined, but in Mexico it remained quite high, suggesting that Ireland advanced in the mobility transition while Mexico did not. Several reasons are offered to explain this, reflecting Mexico's relationships with the United States, multinational corporations, and local income and social conditions in Mexican regions. In Ireland and its relationship with the United Kingdom, by contrast, these factors generally took the reverse direction. This article uses the comparison to examine the relationship between declining emigration and multinational investment and the question of whether Mexico may be expected eventually to reverse its present trends.


2003 ◽  
Vol 1 (2) ◽  
pp. 321-331 ◽  
Author(s):  
Kassie Freeman

This article examines several issues related to the relationship between higher education institutions and multinational corporations in countries such as Hungary that are undergoing historic economic and political shifts and to discuss implications from the findings for China. The findings suggest that, although Hungary and China differ culturally and in the shift in their political and economic changes, China can benefit from the lessons learned in Hungary.


2021 ◽  
pp. 089692052110134
Author(s):  
Jenny Chan ◽  
Greg Distelhorst ◽  
Dimitri Kessler ◽  
Joonkoo Lee ◽  
Olga Martin-Ortega ◽  
...  

We seek to tackle myriad problems of a global production system in which China is the world’s largest producer and exporter of consumer electronics products. Dying for an iPhone simultaneously addresses the challenges facing Chinese workers while locating them within the global economy through an assessment of the relationship between Foxconn (the largest electronics manufacturer) and Apple (one of the richest corporations). Eight researchers from Asia, Europe and North America discuss two main questions: How do tech behemoths and the Chinese state shape labor relations in transnational manufacturing? What roles can workers, public sector buyers, non-governmental organizations and consumers play in holding multinational corporations and states accountable for human rights violations and assuring the protection of worker interests? We also reflect on the possibility that national governments, the electronics industry and civil society groups can collaborate to contribute to improved labor rights in China and the world.


Author(s):  
Pervez N. Ghauri ◽  
Amjad Hadjikhani ◽  
Cecilia Pahlberg

As a result of globalization and the rapid advancements in information availability, international firms are increasingly facing issues of transparency and avoidance of illegitimate opaque behavior. Whereas earlier studies concern either transparency or opacity independently, this chapter extends the analytical scope and conceives of them as related issues. The aim is to propose a theoretical view on transparency in the relationship between multinational companies (MNCs) and political organizations. Underpinning a continuum for transparency/opacity, the theoretical view resorts to behavioral theory and puts forward the elements of trust/distrust and legitimacy/illegitimacy for further understanding the management of transparency in this relationship. The interplay between the three concepts of transparency/opacity, legitimacy/illegitimacy, and trust/distrust are discussed and the reasoning is further demonstrated by using cases from two Swedish firms, Ericsson and Teliasonera, which are presented in the appendix.


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