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1 – 10 of over 15000Busakorn Chantasasawat, K.C. Fung, Hitomi Iizaka and Alan Siu
The purpose of this paper is to examine whether multinational corporations moving into China have a negative impact on the extent of foreign firms moving into other developing…
Abstract
Purpose
The purpose of this paper is to examine whether multinational corporations moving into China have a negative impact on the extent of foreign firms moving into other developing countries in East Asia, Latin America and Eastern Europe.
Design/methodology/approach
The paper controls for a comprehensive set of determinants of why multinational enterprises enter the economies of East Asia, Latin America and Eastern Europe and then adds and examines the instrumented foreign direct investment flows into China to proxy the impact of China on these other economies.
Findings
It was found that the multinational enterprises entering into China stimulate investment in east Asia, but have no significant effects on multinational enterprises entering into Eastern Europe and Latin America.
Research limitations/implications
Owing to data constraints, it was not possible to examine if these conclusions hold for different sectors such as the automobile and electronics sectors.
Practical implications
Governments in developing countries should focus on increasing their attractiveness to multinational enterprises. Policies such as lowering of the corporate tax rates should help.
Originality/value
The paper includes a very comprehensive set of factors and then uses foreign direct investment flows into China as a proxy for the impact of China on other economies.
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Seyed Reza Zeytoonnejad Mousavian, Seyyed Mehdi Mirdamadi, Seyed Jamal Farajallah Hosseini and Maryam Omidi NajafAbadi
Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies…
Abstract
Purpose
Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies to encourage agricultural FDI inflow to a host country is to develop a comprehensive understanding of the main determinants of FDI inflow to the agricultural sector, which is the main objective of the present study.
Design/methodology/approach
In view of this, we take a comprehensive approach to exploring the macroeconomic and institutional determinants of FDI inflow to the agricultural sector by examining a large panel data set on agricultural FDI inflows of 37 countries, investigating both groups of developed and developing countries, incorporating a large list of potentially relevant macroeconomic and institutional variables, and applying panel-data econometric models and estimation structures, including pooled, fixed-effects and random-effects regression models.
Findings
The general pattern of our findings implies that the degree of openness of an economy has a negative effect on FDI inflows to agricultural sectors, suggesting that the higher the degree of openness in an economy, the lower the level of agricultural protection against foreign trade and imports, and thus the less incentive for FDI to inflow to the agricultural sector of the economy. Additionally, our results show that economic growth (as an indicator of the rate of market-size growth in the host economy) and per-capita real GDP (as an indicator of the standard of living in the host country) are both positively related to FDI inflows to agricultural sectors. Our other results suggest that agricultural FDI tends to flow more to developing countries in general and more to those with higher standards of living and income levels in particular.
Originality/value
FDI inflow has not received much attention with respect to the identification of its main determinants in the context of agricultural sectors. Additionally, there are very few panel-data studies on the determinants of FDI, and even more surprisingly, there are no such studies on the main determinants of FDI inflow to the agricultural sector. We have taken a comprehensive approach by studying FDI inflow variations across countries as well as over time.
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This paper aims to analyze existing corporate governance rules which aim to regulate and control the following type of problems: to restore confidence in the financial markets, to…
Abstract
Purpose
This paper aims to analyze existing corporate governance rules which aim to regulate and control the following type of problems: to restore confidence in the financial markets, to reformulate the existing corporate governance systems and mechanisms that have been inadequate, and, finally, to rethink the relationship between ethics and economy. It also aims to identify the factors determining the corporate governance systems and mechanisms in a global economy.
Design/methodology/approach
The paper reports the results of a comparative analysis between different corporate governance systems and mechanisms. In addition, in order to explore the role of institutional determinants in attracting foreign direct investment (FDI) flows, this study considers variables such as an index of shareholder protection, openness to FDI and the interaction between the two above mentioned variables.
Findings
This analysis confirms the economic theory that less open countries are characterized by stronger ownership restrictions and a weak corporate governance mechanism. Conversely, open market and investment regimes are particularly powerful instruments to attract investment in general and FDI in particular.
Originality/value
This study provides a survey of the main system and mechanisms of corporate governance all supported by a survey of recent developments regarding the empirical analysis on the role of institutional determinants in attracting FDI flows.
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Wai Fong Boh, T.T. Nguyen and Yun Xu
The purpose of this paper is to examine factors that impact knowledge transfer from the parent corporation to subsidiaries when there are differences in the national culture of…
Abstract
Purpose
The purpose of this paper is to examine factors that impact knowledge transfer from the parent corporation to subsidiaries when there are differences in the national culture of the parent corporation and the subsidiary. Transferring knowledge can be especially difficult when the source and recipient do not share common beliefs, assumptions and cultural norms. Therefore, this study examines how trust, cultural alignment, and openness to diversity influence the effectiveness of knowledge transfer from the HQ to the employees in the subsidiary.
Design/methodology/approach
Specifically, the study examines knowledge transfer between the headquarters of a multinational corporation in Norway and its Vietnamese subsidiaries, making use of a survey administered to all 70 employees in the Vietnamese subsidiaries.
Findings
The results show that individual's trust of the HQ and their openness to diversity are key factors influencing local employees' ability to learn and obtain knowledge from foreign HQ. The extent to which there is alignment between the organization's corporate culture and the individual's cultural values, on the other hand, appear to make little difference to knowledge transfer from the HQ.
Practical implications
This paper contributes to the literature in cross border knowledge transfer, showing that due to geographical distance or cultural differences between the HQ and the subsidiary, the cultivation of trust and openness to diversity on the part of local employees is critical for knowledge transfer.
Originality/value
The paper also contributes by examining knowledge transfer in an international context.
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Tugce Ertem-Eray and Eyun-Jung Ki
As the number of corporate blogs has continued to increase over the years, this study examines the use of relationship cultivation strategies of Fortune 500 companies on their…
Abstract
Purpose
As the number of corporate blogs has continued to increase over the years, this study examines the use of relationship cultivation strategies of Fortune 500 companies on their corporate blogs. Moreover, it focuses on how companies use corporate blogs as interactive online communication channels to create a sense of community among their publics.
Design/methodology/approach
A content analysis of Fortune 500 company corporate blogs was conducted to examine the use of relational cultivation strategies and their methods of promoting a sense of community.
Findings
Findings indicate that networking and sharing tasks are used most frequently among all relational cultivation strategies on corporate blogs, and that there are statistically significant differences among industries for using relationship cultivation strategies on corporate blogs. The most frequently used dimension of sense of community on corporate blogs is shared emotional connection.
Originality/value
Studies analyzing social media as public relations tools have not yet focused on community building. In fact, few studies have examined the community building aspect of corporate blogs in the public relations field. To fill this gap, this study focuses on community building and analyzes how companies use corporate blogs as an interactive online communication channel to create a sense of community among their publics.
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Adamu Braimah Abille, Desmond Mbe-Nyire Mpuure, Ibrahim Yahaya Wuni and Peter Dadzie
The purpose of the paper was to investigate the role of fiscal incentives in driving foreign direct investment (FDI) inflows into the Ghanaian economy based on data from 1975 to…
Abstract
Purpose
The purpose of the paper was to investigate the role of fiscal incentives in driving foreign direct investment (FDI) inflows into the Ghanaian economy based on data from 1975 to 2017 with the Eclectic paradigm as the theoretical basis. FDI inflows was the dependent variable whiles trade openness, corporate tax rate, exchange rate and market size were the independent variables with corporate tax rate as the main explanatory variable of interest.
Design/methodology/approach
The autoregressive distributed lag (ARDL) bounds test technique was employed to investigate Cointegration in the model. The results showed the presence of cointegration among the variables.
Findings
The results revealed that corporate tax rates have a significant negative impact on FDI inflows into the Ghanaian economy in the long run and significant positive impact on FDI inflows in the short run. In the context of Ghana, the positive short-run relationship observed is attributed to the lag effect of tax policy on FDI inflows.
Research limitations/implications
One obvious limitation of the research is that, it does not identify the specific foreign businesses that are more deserving of a low corporate rate and to what extent can that boost FDI inflows in Ghana. Another limitation is that the data analyzed in the paper is exclusively for Ghana and the findings may not be generalized for other countries.
Practical implications
Based on the research findings, it is recommended that the Ghana Revenue Service (GRA) restructures the corporate tax regime in the country to deal with the policy lapses. It is also recommended that low corporate rates should be maintained especially in respect of foreign companies that are into the production of goods and services for which indigenous companies in Ghana have a comparative disadvantage in order to drive FDI into the Ghanaian economy.
Originality/value
This paper is unique for providing up to date and dynamic insights into the tax incentive and FDI nexus in the Ghanaian context.
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This “Masterclass” paper aims to show senior leaders seeking innovation in various degrees of corporate openness how to defend their businesses against the threats and to take…
Abstract
Purpose
This “Masterclass” paper aims to show senior leaders seeking innovation in various degrees of corporate openness how to defend their businesses against the threats and to take advantage of the opportunities posed by social media.
Design/methodology/approach
Openness is not an “anything goes” approach to management. This paper explains the rules for two‐way accountability, with clear delineation of what is expected from each side of the relationship.
Findings
Getting involved in social media can be disturbing to managers because it means dismantling some of the barriers and controls that embodied the 20th Century organization and that filtered communications within and to and from the organization.
Practical implications
One approach is to articulate “covenants” between the parties so that everyone knows explicitly what behavior is appropriate. For example, social media guidelines for employees and customer‐facing guidelines, such as community participation or comment guidelines.
Originality/value
For most organizations, being more open means building relationships that have not existed before. This paper offers leaders a detailed, practical, analytic guide for managing the process.
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When organizations set out to manage their communications in accordance with the corporate ideal, they seem to take for granted that they are transparent, not only to their…
Abstract
When organizations set out to manage their communications in accordance with the corporate ideal, they seem to take for granted that they are transparent, not only to their surroundings but also to themselves. The notion of corporate communications, in other words, builds on the assumption that organizations are able to have a general view of themselves as communicating entities. But is this really the case? And, if not, is it possible to articulate the challenge of corporate transparency in alternative, strategic terms? Since contemporary organizations increasingly relate to their surroundings as if they are transparent, these and related questions are highly relevant in both theoretical and practical terms. Discusses the notion of transparency both as a condition and as a strategy, and deconstructs conventional assumptions associated with the use of the term. Looking at corporate transparency as a staging process that involves strategic disclosure, institutionalisation and mimetic behaviour, asks fundamental questions about organizational openness in an age of transparency.
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Giorgio Fazio and G.M. Chiara Talamo
In this chapter, we investigate empirically the role of corporate and institutional governance in attracting FDI compared to forms of incentives, such as lower taxes and wage…
Abstract
In this chapter, we investigate empirically the role of corporate and institutional governance in attracting FDI compared to forms of incentives, such as lower taxes and wage costs. In particular, we use a two-step gravity approach, where in the first step we control for a number of determinants traditionally used in gravity models and in the second we test explicitly for the significance of a set of indicators measuring institutional and corporate quality. Our results seem to validate the hypothesis that corporate governance and institutional quality are important attractors of FDI.
Communicating with employees is an aspect of management which is today being subjected to new pressures and ideas. Trade unions have new disclosure rights. A growing number of…
Abstract
Communicating with employees is an aspect of management which is today being subjected to new pressures and ideas. Trade unions have new disclosure rights. A growing number of managers believe that employees have a right to know about company matters, or see employee communications as an essential adjunct to involving employees in managerial decisions through consultation or participation.