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This chapter proposes a framework which relates the Firm Specific Advantages (FSAs) of the multinational enterprise with the timing of entry in VUCA-type host environments, characterised by high volatility (V), uncertainty (U), complexity (C), and ambiguity (A), and which have become extraordinarily high risk. Drawing on historical evidence, in particular on Geoffrey Jones’ research - to whom this volume is dedicated - on the evolution of international business, it shows that in extraordinarily high-risk environments multinational enterprises need to have additional FSAs beyond those considered in the traditional FSAs/CSAs (country specific advantages/firm specific advantages) framework. The proposed framework distinguishes between prevention, mitigation, avoidance and withdrawal strategies carried out before and after entry in host markets that have become of extraordinary high risk.

The PMI Risk Framework (PRF) is introduced as a guide to classifying and identifying risks which can be the source of post-merger integration (PMI) failure — commonly referred to as “culture clash.” To provide managers with actionably insight, PRF dissects PMI risk into specific relationship-oriented phenomena, critical to outcomes and which should be addressed during PMI. This framework is a conceptual and theory-grounded integration of numerous perspectives, such as organizational psychology, group dynamics, social networks, transformational change, and nonlinear dynamics. These concepts are unified and can be acted upon by integration managers. Literary resources for further exploration into the underlying aspects of the framework are provided. The PRF places emphasis on critical facets of PMI, particularly those which are relational in nature, pose an exceptionally high degree of risk, and are recurrent sources of PMI failure. The chapter delves into relationship-oriented points of failure that managers face when overseeing PMI by introducing a relationship-based, PMI risk framework. Managers are often not fully cognizant of these risks, thus fail to manage them judiciously. These risks do not naturally abide by common scholarly classifications and cross disciplinary boundaries; they do not go unrecognized by scholars, but until the introduction of PRF the risks have not been assimilated into a unifying framework. This chapter presents a model of PMI risk by differentiating and specifying numerous types of underlying human-relationship-oriented risks, rather than considering PMI cultural conflict as a monolithic construct.

This chapter describes the change efforts and action research projects at a Dutch multinational which, over a period of 25 years, produced in one of its businesses a zigzag path toward collaborative leadership dynamics at the horizontal and vertical interfaces. The chapter also identifies the learning mechanisms that helped achieve this transformation. Changing the patterns at the vertical interfaces proved to be a most tricky, complex, and confusing operation. The data show that organizations need hierarchical interfaces between levels, but are hindered by the hierarchical leadership dynamics at these interfaces. The data furthermore show that competitive performance requires more than redesigning horizontal interfaces. A business can only respond with speed and flexibility to threats and opportunities in the external environment when the leadership dynamics at agility-critical vertical interfaces are also changed.

Purpose – New genetically modified (GM) crops are novel but risky interventions, offering a variety of potential benefits but also the possibility of serious unintended consequences. I address the regulatory framework for GM crops, seeking protection from disproportionate risks without unduly stifling innovation.

Approach – Conditions that may justify precautionary interventions are identified, and an idealized regulatory protocol (screening, pre-release testing, and post-release surveillance, STS) is developed to provide protection, encourage research and learning, and focus-in quickly on the cases that pose serious threats of harm. This protocol is adapted to the case of GM crops, and compared with current regulatory practice in the United States, the EU, and Canada, as well as international agreements exemplified by the Cartagena Protocol on Biosafety. Two real-world cases are considered, Starlink® corn and Roundup-Ready® canola, and some speculations are offered as to how the stylized protocol might have handled them.

Findings for policy – Pre-release, US regulatory practice is more fragmented and incomplete than the stylized protocol; EU practice is more systematic and streamlined, but some critics perceive over-regulation; and Canadian regulatory practice is more consistent with the protocol. Only the EU performs systematic post-release surveillance. International agreements have various weaknesses, beginning with fragmentation: for example, food safety and biosafety are regulated separately.

Implications for further research – Embracing the STS framework opens a broad new avenue of research about to how the mix of pre-release testing and post-release surveillance might be streamlined to provide adequate protection while reducing further the costs and delays entailed.

This study examines the relation between internal control material weakness (ICMW) under Section 404 of the Sarbanes-Oxley Act (SOX) and real earnings management. Our measures of real earnings management are abnormal cash flow from operations (ABCFOs), abnormal discretionary expenses (ABDISEXP), and abnormal production cost (ABPROD). We use a sample of 1,824 manufacturing firms over the period 2004–2011 to run regressions of ABCFO, ABDISEXP, and ABPROD on ICMW and other independent variables. We find that ICMW is negatively associated with ABCFOs. Another result that emerges from this study is a positive relation between ICMW and ABPROD. Our results imply that manufacturing firms with materially weak internal controls predominantly use overproduction and excessive price discounts to manage operational activities to achieve earnings targets. As SOX Section 404 is designed to reduce the instances of firms having ICMW, our finding that ICMW firms engage in real earnings management suggests that the use of real earnings management could be reduced as SOX Section 404 succeeds in reducing ICMW.