scholarly journals Institutional Disruptions and the Philanthropy of Multinational Firms

2021 ◽  
Author(s):  
Luis Ballesteros ◽  
Catherine Magelssen
Keyword(s):  
Multinational Enterprises ◽  
Multinational Firms ◽  
Market Competition ◽  
Economic Importance ◽  
Loss Mechanism ◽  
Regulatory Quality ◽  
Stable Conditions ◽  
Country Market ◽  
Central Argument ◽  
Stop Loss

This paper studies philanthropy by multinational enterprises (MNEs) during institutional disruptions—the sudden and unexpected, temporary, and systemic breakdowns in market-oriented institutions. The central argument is that, under institutional disruptions, MNEs aim to restore factors that are essential for the market to function, such as infrastructure and labor markets, and the strength of the market restoration motive is positively associated with the economic importance of the affected country to the MNE. Analyses of donations from 2,000 MNEs headquartered in 63 countries in the aftermath of 265 major epidemics, natural disasters, and terrorist attacks affecting 129 countries suggest that the economic importance of the country to the firm strongly explains donations. Country market concentration, public aid, and the country’s regulatory quality moderate this effect. These associations are robust to a matching method; a vector of firm-, country-, and event-specific time-varying and -constant variables; and alternative motives, such as reputation, altruism, media salience, market standing, and poverty-gap avoidance. They offer evidence that company philanthropy in the aftermath of institutional disruptions may deviate from predicted behavior under stable conditions. Particularly, the findings contest the expectation that philanthropy rises in market competition. Monopolistic firms are comparatively large donors and may act as an economic stop-loss mechanism during large disruptions.

scholarly journals Host-Country Market Environment, Intra-Firm Technology Transfer Performance and Corporate Sustainability: A Conceptual Study

2016 ◽  
Vol 11 (4) ◽  
pp. 91
Author(s):  
Syed Ali Fazal ◽  
Sazali Abdul Wahab ◽  
Abu Sofian Bin Yaacob ◽  
Nur Fadiah Mohd Zawawi
Keyword(s):  
Technology Transfer ◽  
Multinational Corporations ◽  
Host Country ◽  
Practical Implication ◽  
Market Competition ◽  
Corporate Sustainability ◽  
The Body ◽  
Market Environment ◽  
Transfer Of Technology ◽  
Country Market

<p>Technological innovations have emerged as crucially significant factor for sustaining market competition and achieving sustainable competitive advantage in the 21st century. The Multinational Corporations (MNCs) as celebrities of innovation play significant role in diffusing technological knowledge throughout firms both nationally and internationally. Although numerous studies exist on technology transfer the majority of existing literature addresses the issues related to inter-firm transfer of technology only while the area related to intra-firm transfer of technology has been largely underexposed; study of which is believed to be ideal for fruitful exploration of profitability in technology transfer projects. By exploring the existing relevant literature, the current study would attempt to posit a new model in regards to the effect of host-country market factors on the performance of technology transferred by the MNCs and its subsequent impact on corporate sustainability. In the present study the relative influence of two market environment factors of the host-country, competitive intensity and market dynamism have been focused on and the study is thereby expected to contribute both theoretically in the body of knowledge and also in terms of practical implication for policy makers and MNCs and hence enriching the existing intra-firm literature simultaneously.</p>

scholarly journals The Relationship between the Country‘s Global Competitiveness and its National MNEs

2019 ◽  
Vol 8 (2) ◽  
pp. 87-92
Author(s):  
Inga Aleksandrovna Mezinova ◽  
Janetta Benikovna Amirkhanyan ◽  
Oleg Valerjevich Bodiagin ◽  
Milena Miroslavovna Balanova
Keyword(s):  
Multinational Enterprises ◽  
Multinational Firms ◽  
Variance Inflation Factor ◽  
Global Competitiveness ◽  
Global Competitiveness Index ◽  
Inflation Factor ◽  
Competitiveness Index ◽  
Country Competitiveness ◽  
The Relationship

Abstract The main purpose of this paper is to study the influence of home-multinational enterprises on country global competitiveness and to determine how this influence changes with the stage of country competitiveness. Based on the regression model, Variance Inflation Factor test and Agglomerative Hierarchical Clustering method, we analyzed the WEF Global Competitiveness Index 2017–2018 of those countries whose multinational firms were included into the Forbes Global 2000 list of 2017. The findings highlighted the important role of home-MNEs as determinants of countries‘ competitiveness, however MNE-related contribution of different pillars and components of the Global Competitiveness Index vary, depending on the stage of competitiveness of the studied 58 countries.

scholarly journals A Quantitative Model for Option Sell-Side Trading with Stop-Loss Mechanism by Using Random Forest

2021 ◽  
Author(s):  
Chi-Fang Chao ◽  
Yu-Chen Wang ◽  
Mu-En Wu
Keyword(s):  
Random Forest ◽  
Predictive Model ◽  
Portfolio Management ◽  
Statistical Approach ◽  
Learning Algorithm ◽  
Quantitative Model ◽  
Machine Learning Algorithm ◽  
Random Forest Algorithm ◽  
Loss Mechanism ◽  
Stop Loss

Abstract Due to the characteristics of high leverage and low margin, option is very suitable for quantitative trading by applying portfolio management to control the profit and risk. The money management is an important issue to build a portfolio especially for option sell-side trader, since the profit is only the premium, while the loss is unlimited. In this research, we propose a model for option sell-side strategy to estimate the win-rate of option by the premium, time to maturity, and volatility based on statistical approach and random forest algorithm. The prediction of the model is visualized through heatmap which can reveal the profitable trading range intuitively, we use the precision score to evaluate the performance in these two models and proof the effectiveness and robustness of predictive model proposed by random forest algorithm. In the future, we plan to apply other machine learning algorithm to propose the predictive model for spread trading.

Innovation Network in IT Sector

2014 ◽  
pp. 148-170 ◽  
Author(s):  
Swapan Kumar Patra
Keyword(s):  
Developing Countries ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Innovation System ◽  
Developed Countries ◽  
Foreign Firms ◽  
Home Base ◽  
Recent Trends ◽  
Innovation Mode ◽  
The Developed Countries

Multinational Enterprises usually keep their crucial R&D close to their home base. However, recent trends show that MNEs are increasingly offshoring their R&D activities. A couple of decade ago this R&D offshoring phenomenon was mainly restricted in the developed countries. Since early 1990’s this paradigm has changed and many Multinational firms prefer developing countries as their R&D destination. Among developing countries, India and China are favorable destinations for many MNEs. The R&D alliance trends of foreign firms show that, in India they prefer Indian domestic firms and in China, they prefer universities and government research institutes. Government of both these countries should take policy measures to strengthen the linkages between foreign firms and local actor of innovation system. Also, innovation is no longer restricted to or confined within a firm’s border. Firms are acquiring knowledge from outside its boundary by “Open Innovation Mode.”

International Branding at Mirza International

2014 ◽  
pp. 107-120
Author(s):  
Gautam Dutta
Keyword(s):  
Development Strategy ◽  
Multinational Enterprises ◽  
Information Technologies ◽  
Foreign Market ◽  
New Delhi ◽  
Strategic Decisions ◽  
Developed Country ◽  
Brand Building ◽  
Country Market ◽  
The Uk

Today, due to globalization, enterprises are increasingly looking towards the global marketplace to market their products. The business opportunities in the foreign markets are no longer considered as only available to large multinational enterprises with long term foreign market presence. Enterprises today, regardless size, take part in a global competitive market which is supported by great advances in information technologies, communication, and transportation. This trend solves one of the main weaknesses found in comparatively smaller enterprises of traditional focus: home country market dependency. The case focuses on Mirza International Limited which originated from a small Indian Tannery business. The company is led by an ambitious, aggressive management team which has helped in achieving phenomenal growth. The company has emerged as a frontrunner in the manufacturing and marketing of footwear. Headquartered in New Delhi, the company markets its leather and leather footwear products, across the globe the UK, Europe, South Africa, the Middle East, and so forth. However, company management is now at a crossroads in regards to a more aggressive approach to international brand building for its product and strategic decisions. This case aims to address these issues regarding smaller company’s internationalization and marketing. The case focuses on the dilemma often faced by medium sized firms from Asia in entering developed country markets in terms of branding or generic product development strategy. The case illustrates the differences in brand building that exist in a big multinational company and in smaller companies during internationalization.

The influential factors and consequences of knowledge sharing for expatriates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wann-Yih Wu ◽  
Li-Yueh Lee ◽  
Nhu Vo Quynh Phan ◽  
Alfiyatul Qomariyah ◽  
Phuoc-Thien Nguyen
Keyword(s):  
Knowledge Sharing ◽  
Organizational Support ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Multinational Firms ◽  
Influential Factors ◽  
Competitive Advantages ◽  
Global Marketplace ◽  
Content Type ◽  
Survey Approach

PurposeAs the dynamic competition in the global marketplace becomes increasingly severe, multinational firms have no choice but to improve their competitive advantages and enhance productivity through innovation, learning and leadership. One essential issue is the capability of expatriates to support knowledge sharing and transfer from organizations headquarter to their subsidiaries through expatriates; however, there are few studies on this issue. This study attempts to identify the antecedents, consequences and moderators of knowledge sharing.Design/methodology/approachUsing a questionnaire survey approach, data were obtained from 234 expatriates working for Taiwanese multinational enterprises. The hypotheses were tested by SmartPLS 3.0.FindingsThe empirical results indicate that opportunity and ability have a significant impact on expatriates' knowledge sharing. Trust, commitment and social capital also have significant influences on expatriates' collecting and donating of knowledge. The level of tacitness, specificity and complexity of knowledge have a negatively impact on knowledge sharing. Knowledge collecting can positively promote the outcome of knowledge sharing, including learning and growth, internal process, customer satisfaction, and financial performance. Furthermore, organizational support and the richness of transmission channels served as two of the moderators that can amplify the influences of the antecedents on knowledge sharing and the influences of knowledge sharing on outcomes.Originality/valueThe results of this study can provide valuable references for academicians and professionals when deciding how to facilitate knowledge transfer from the company headquarters to subsidiaries through expatriates.

scholarly journals Transfer Pricing: Conceptual Thoughts on the Nature of the Multinational Firm

2006 ◽  
Vol 31 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Markus Brem ◽  
Thomas Tucha
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Transaction Cost Economics ◽  
Transfer Pricing ◽  
Multinational Firm ◽  
Value Chains ◽  
Chain Model ◽  
Business World ◽  
Clear Cut

This paper deploys Transaction Cost Economics (TCE) to elaborate on the shortcomings of ‘mainstream‘ transfer pricing in multinational firms. Departing from the notion that multinationals increasingly (re-)organize their business along multinational value chains irrespective of jurisdictional borders, this paper discusses the nature of the multinational firm and the problem of choosing the right intra-group (transfer) price. The mainstream transfer pricing approach derived from the Arm�s Length Principle (ALP) is deemed inappropriate for globally operating multinational enterprises (MNEs). Referring to the value chain model, the paper suggests that ‘entrepreneurial coordination’ is the key performance feature to be used for valuing business activity and for allocating — for tax transfer pricing purposes — standard mark-ups and residual profits along the value chain. The main findings of this paper are: Neo-classical concepts on marginal pricing may not suffice to establish arm's lengh transfer pricing; the inadequacy between tax-world transfer pricing (getting income allocation right) and business-world transfer pricing (getting management incentives right) might find its explanation in such concepts. MNEs need to be understood as large organizations different from domestic large organizations by the fact that they operate in different jurisdictions and/or institutional environments. Operative business is coordinated along business lines in which value chain processes can e identified. De facto, business-world transfer pricing takes place along such value chains in which tangible and intangible assets are transferred and hence require appropriate pricing from both the tax-world and the business-world perspective. TCE is a worthy candidate for illustrating governance structures and transactional attributes of business between related parties of a multinational group; such features support arguments to establish arm's length transfer pricing. Regularly, a clear cut-off of functional allocation into tax jurisdictions is difficult to achieve because of the high degree of integration into the value chains of the multinational. TCE appears to better distinguish between so-called �routine� and ‘non-routine’ functions. Transactions of the MNE are rarely of an ‘either-or’ feature (either ‘market’ or ‘hierarchy’). Depending upon transactional attributes, the price of such transaction can be assessed by variables describing the institutional and economic context, the transaction-specific contract, the stage of the business process involved, the strategy chosen, and the function pattern (function, risk, assets) Comparable information is rarely found in databases which provide company information. The more non-routine functions and intangibles are involved, the less is the tested function (or business unit) comparable with companies from external databases. Under these data constraints on comparables, the arm�s length tests on transfer pricing will have to resort to internal information if the ALP is intended to remain viable. A next-generation transfer pricing approach may have to make use of patterns of governance to characterize and to value the functional contributions to the overall value chain.

scholarly journals Information Systems Tools, Data Security, And On-Line Database Usage Among Multinational Enterprises

2001 ◽  
Vol 5 (3) ◽  
pp. 17-26
Author(s):  
L. Murphy Smith ◽  
Sharon Hurley Johns ◽  
Sharon Hurley Johns ◽  
Carolyn A. Strand ◽  
Carolyn A. Strand
Keyword(s):  
Information Systems ◽  
Financial Reporting ◽  
Data Security ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Accounting Information ◽  
The United States ◽  
Process Data ◽  
On Line ◽  
Tools And Techniques

Multinational enterprises (MNEs) are increasingly important to business activity in the United States and abroad. Developing technologies in e-business, information security, and electronic financial reporting are causing major changes in the accounting information systems of companies based in the U.S. and around the globe. The ability to communicate and process data efficiently and effectively is essential to the continued success of these firms. MNEs operate in diverse cultural environments. Research has demonstrated that culture affects the use of information technology, including how firms collect, sort, process, and distribute accounting information and other types of information. The efficiency and effectiveness of information systems depends on the appropriate use of information systems tools and techniques. This study examines the use of systems development tools and techniques, data security devices, and on-line databases among multinational firms.

Brand Positioning through Print Advertising

2014 ◽  
pp. 155-164
Author(s):  
JuanJuan Xu ◽  
Yeqing Bao ◽  
Timothy D. Landry
Keyword(s):  
Economic Development ◽  
Multinational Firms ◽  
Market Competition ◽  
Brand Positioning ◽  
Print Advertising ◽  
Consumer Market ◽  
The World ◽  
Chinese Markets ◽  
Foreign Brands ◽  
Important Shift

Due to rapid economic development and a burgeoning middle class, China has attracted consumer market competition from around the world. The market environment in China, however, is culturally complex. Juxtaposed between traditional Eastern values and Western materialism, China presents unique challenges regarding brand positioning. Within this scope of inquiry, the authors explore an important aspect of positioning: consumer product branding through print advertising. Specifically, they explore the demographic makeup of models/spokespeople, look at differences between domestic and foreign brands, and postulate how such advertising choices influence brand perceptions. The results show that Chinese domestic brands prefer Asian models. Interestingly, multinational firms appear to be choosing young, mostly male, Asian models. This is an important shift in branding and garners support for “localization” strategies for Chinese markets.

scholarly journals The Boundaries of Multinational Enterprises and the Theory of International Trade

1995 ◽  
Vol 9 (2) ◽  
pp. 169-189 ◽  
Author(s):  
James R Markusen
Keyword(s):  
International Trade ◽  
General Equilibrium ◽  
Empirical Evidence ◽  
Equilibrium Model ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Final Section ◽  
General Equilibrium Model ◽  
Knowledge Capital ◽  
Multinational Production

This paper begins with a review of empirical evidence on multinational firms. Conceptual underpinnings of a theory are developed, relying in particular on the notion of knowledge capital as a mobile, joint input into geographically separated production facilities. This idea is embedded in a simple two-country general equilibrium model that supports multinational production in equilibrium under conditions consistent with the empirical evidence. The final section examines internalization and shows why certain properties of knowledge capital also imply a preference for transferring technologies internally within the firm, rather than through arm's-length markets.

Sign in / Sign up

Export Citation Format

Share Document