Search results

This paper aims to develop a conceptual framework and presents a number of propositions relating to why and how multinational companies (MNCs) engage in social innovations. The central focus is on the role of MNC knowledge, networks and power for their involvement in social innovations.

The authors combine literature on social innovations, business innovations and MNC literature, and present a number of propositions dealing with the link between MNC knowledge, networks and power-relations and their potential involvement in social innovations.

The authors emphasize that when social innovations are embraced by MNCs, the way that these corporations use their knowledge, networks and existing power-relations needs to be adapted to the new conditions present in the social innovation arena.

The main limitation of this work is that the propositions are based on anecdotal evidence and that they are restricted to literature revolving around a few theoretical concepts (knowledge, networks, power). Against this, the authors suggest that to address the call for more empirical work on MNCs engagement in social innovation, these concepts could be used as a starting point in future empirical investigations.

The paper brings together and outlines a theoretical framework based on three theoretical approaches to the MNC as suggested by the literature: the knowledge-based MNC, differentiated MNC and political MNC. Based on these three perspectives, the key contribution of this paper is to develop a broader understanding of why and how MNCs engage in social innovation and the potential underlying liabilities for this involvement.

Based on the findings in earlier research of the importance of relationships in general, and relationships to social actors in particular to explain innovation processes in emerging economies, the aim of the paper is to reach a better understanding of the mechanisms behind innovations in these economies. This has been accomplished through an investigation of an innovation process and the relationships between two business firms and a NGO that were central for its progression. Theoretically the study is constructed on the concepts of trust, commitment and cultural capability in long and short-term relationships as discussed in business network theory and theory on discontinuous innovation. A case study method is used and the social innovation project ‘Connexão Belterra’ that enabled connectivity in the distant Amazon region of Pará, Brazil, was investigated.

The purpose of this paper is to numerically model convective drying of a two‐dimensional iron ore pellet subjected to turbulent flow.

Simulations of the iron ore pellet drying process are carried out with commercial computational fluid dynamics software. The moisture distribution inside the pellet is calculated from a diffusion equation and drying due to evaporation at the surface is taken into account.

The results show an initial warm up phase with a succeeding constant rate drying period. Constant drying rate will only be achieved if the surface temperature is constant. The falling rate period will subsequently start at the forward stagnation point when the minimum moisture content is reached, while other parts of the surface still provide enough moisture to allow surface evaporation. The phases will thus coexist for a period of time.

Owing to the complex physical processes involved in iron ore pellet drying, some parameters in the model are based on estimations. The effective diffusivity should, for example, in the future be investigated more thoroughly. It is also important to extend the model so that the falling rate drying period is also included. The model is at present undergoing further validation.

The simulations can provide detailed information on some key fluid dynamics and physical processes that an iron ore pellet undergoes during drying.

The simulations enhance the understanding of iron ore pellet drying and the model provides a complement to experimental investigations when optimizing the drying process.

Purpose – Researchers rarely touch on the phenomenon of crisis in the relationship itself combined with relationship conflict caused by turbulence in the relationship environment – specifically for emerging markets. The aim of this study is to develop a theoretical view for studying how firms manage business relationships when facing crises caused both by involved parties and by contextual factors.

Design/methodology/approach – Based on a business network perspective, the paper develops a relationship view stressing trust/distrust, commitment/de-commitment and uncertainty/knowledge as central explanatory relationship elements. The paper employs longitudinal case study method and discusses how the relationship between the Swedish firm Ericsson and Telefónica in Argentina for the period of 1998–2004. The process view is composed of three phases: the start-up phase, a phase of crisis and instability and finally a phase of restoration.

Findings/originality – With the assumption of extensiveness in relationship development and high risk in falling from conflict into critical problems in emerging markets, the paper has elaborated new theoretical and empirical thoughts. The study gains further strength from the fact that the number and intensity of crises is increasing because of the escalation in global interdependency. It contributes further knowledge on strategy decisions like exit, wait and see, take the risk and advance affecting the firms’ business relationship.

Adding to the theoretical view of relationship development, this paper holds the view that relationship change encompasses not only smooth incremental change but also includes crises which can trigger relationship weakening, dissolution and/or recovery. The aim is to develop a theoretical view that allows understanding of both smooth incremental and critical changes in the process of relationship development.

Based on a business network perspective, the paper's relationship view holds uncertainty, commitment and trust as central explanatory elements. The process view is composed of three episodes: incremental relationship development; relationship crisis; and ending or survival. The paper employs a longitudinal case study method and discusses how the relationship between the Swedish firm, Ericsson, and its counterpart, Telefónica, develops in the emerging market of Argentina during the period of 1998-2004.

Conclusions demonstrate the vulnerability of relationships due to counterparts' behaviour and network embeddedness. This is a risk of commitment deterioration, and remedial actions like investment in new commitments will reduce distrust and uncertainty. Re-energizing relationships incrementally requires behaviour like waiting strategies, when otherwise the choice is to exit.

Few researchers have combined the findings from stable relationship development studies with the findings from research on crisis into one model handling both stability and instability in business relationships. This is despite the fact that episodes of turbulence and instability are becoming more common in business relationships, due to entrance into more unstable markets, and markets crises of various types.

The purpose of this paper is to discuss how network relationships, with business as well as with non-business actors, affect each other and have an impact on strategy processes in subsidiaries in Latin America.

A qualitative approach is used in which a new strategy in a European multinational company (MNC) is studied at the subsidiary level in Brazil and Argentina. The authors discuss why the strategic processes are so different within the same MNC. During 2009-2011, 50 interviews were conducted with respondents in Latin America and at headquarters.

The results point to the importance of including relationships with both business and non-business actors to understand the subsidiary strategy processes. The authors suggest that such processes can be explained by interdependent relationships in a wider network context characterised by commitment and trust, leading to increased legitimacy among the actors involved.

Managers need to invest in relationships not only with business counterparts but also with non-business actors, as they are interdependent and vital for the strategy development.

Relationships between firms and actors such as governments and civil society are still under-researched, although they are essential, especially in emerging economies. The paper puts focus on network relationships in strategy research and contributes to the development of business network theory by extending the network to also include relationships with such non-business actors and relate it to strategy processes. There is also a contribution to research on corporate social responsibility activities with a specific focus on Latin America.

Siavash Alimadadi is a PhD candidate at the Department of Business Studies, Uppsala University. His research focuses on the role of knowledge and trust in the internationalization process. His current research examines the impact of socio-political actors on MNCs in Turkey.