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1 – 10 of over 1000There are two leading paradigms about the power balance between multinational corporations (MNCs) and states. The MNCs in Command approach takes the perspective that MNCs dominate…
Abstract
There are two leading paradigms about the power balance between multinational corporations (MNCs) and states. The MNCs in Command approach takes the perspective that MNCs dominate states. The States in Command perspective assumes that states lord over MNCs. Each perspective suffers from noteworthy flaws. I advocate a modified bargaining power (MBP) approach to understanding the relative power of MNCs and states. I test the value of this approach by examining Microsoft's experience in China between 1987 and 2004. My study shows that that a MBP approach sheds considerable light on the aforementioned case, whereas the two leading paradigms do not.
Weihao Li, Ying Chen and J. Ryan Lamare
This chapter aims to answer whether foreign multinational corporations (MNCs) operating within the Chinese context differ from indigenous firms on several essential labor…
Abstract
This chapter aims to answer whether foreign multinational corporations (MNCs) operating within the Chinese context differ from indigenous firms on several essential labor standards indicators: white- and blue-collar salaries, pension insurance, and working hours. In drawing upon neo-institutional and organizational imprinting theories and applying these to the Chinese context, the study addresses competing arguments regarding the expected effects of ownership type on these indicators. We employ seemingly unrelated regressions (SURs) to empirically examine a novel national survey of 1,268 firms in 12 Chinese cities. The regression results show that foreign MNCs do not provide uniquely beneficial labor practice packages to workers when compared with various indigenous firm types, including state-owned enterprises (SOEs), affiliate businesses of Hong Kong, Macau, and Taiwan, and domestic private enterprises (DPEs). Specifically, although MNCs provide relatively higher wage rates, they underperform relative to SOEs concerning social insurance. However, DPEs consistently underperform relative to MNCs across most indicators. The mixture of the results contributes important nuances to the application of neo-institutional and organizational imprinting theories to the Chinese context.
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Chiang-nan Chao, Robert J. Mockler and Dorothy G. Dologite
This research focuses on several important strategic concerns for multinational corporations (MNCs) which are exploring strategic alliances in the China market. The results…
Abstract
This research focuses on several important strategic concerns for multinational corporations (MNCs) which are exploring strategic alliances in the China market. The results suggest that multinational corporations need to assess and re-assess continuously the business conditions in China, in order to understand this market better and be successful in future business dealings with China, a market that still has great growth potential. The significant differences exist between Western MNCs’ executives and their Chinese counterparts. The results also suggest that MNCs should focus on joint venture partners’ marketing capabilities, and bridge the differences between the joint venture partners.
Maoliang Bu, Zhibiao Liu, Marcus Wagner and Xiaohua Yu
This paper tests the pollution haven hypothesis by examining the relationship between environmental regulation and foreign investment with consideration of the role of corporate…
Abstract
This paper tests the pollution haven hypothesis by examining the relationship between environmental regulation and foreign investment with consideration of the role of corporate social responsibility, which has so far been neglected. Using multinationals’ investment data from China, our results in general support the pollution haven hypothesis that less stringent environmental regulation is more attractive for multinationals to invest in China, but high social responsibility can counteract attractiveness of weak environmental regulation.
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Maoliang Bu, Shuwen Zhai, Jie Zhang and Wenping Zheng
The central debate on pollution havens concerns whether the level of environmental regulation in developing countries influences foreign investment location decisions. Most…
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The central debate on pollution havens concerns whether the level of environmental regulation in developing countries influences foreign investment location decisions. Most empirical studies are based on aggregate data, while micro-level evidence is relatively lacking in the literature. To fill this research gap, this paper tests for the existence of intracountry pollution havens in China by estimating the determinants of foreign investment flows based on a large firm-level panel dataset. Evidence from this study supports the existence of pollution havens within China in certain industries. However, the sensitivity of foreign investment to environmental regulation varies significantly across industries with different pollution characteristics. Furthermore, when the impact of government subsidies on foreign investment is accounted for, the results show that subsidies can compensate for pollution treatment costs in provinces with stricter environmental regulation.
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Xinyi Wu and Gary Gereffi
In the digital economy, what are the strategies of multinationals from developed countries and emerging markets? How do regulations in the home country affect their growth? Recent…
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In the digital economy, what are the strategies of multinationals from developed countries and emerging markets? How do regulations in the home country affect their growth? Recent digital multinationals in diverse national and institutional contexts raise questions that require new approaches in international business (IB) studies. This chapter examines two leading firms in the global e-commerce industry: Amazon and Alibaba. We compare their digital capabilities and physical asset-building strategies over the past two decades and we connect the Internet governance environment in the United States and China with their business models and internationalization patterns. We argue that despite the platform and global nature of Amazon’s and Alibaba’s activities, the recent moves of governments across the world to regulate Internet governance poses an important challenge for digital multinationals. This research features a comparative analysis of two prominent digital multinationals and identifies a promising area for future IB strategy studies.
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Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key…
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Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key driver of this phenomenon has been the cross-border production, foreign investment, and trade both final and intermediate goods by multinational corporations. Research has sought to understand how foreign direct investment (FDI) affects host economies. This paper reviews the main theories and empirical evidence of two streams of literature: the mechanisms by which multinational activity might create positive effects and externalities to countries and the role of complementary local conditions, also known as “absorptive capacities,” that allow a country to reap the benefits of FDI paying particular attention to the role of factor markets, reallocation effects, and the linkages generated between foreign and domestic firms. The survey focuses mainly on work related to developing countries.
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Ruby P. Lee, Xinlin Tang and Xitong Guo
The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their…
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The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their foreign subsidiaries, thus, becomes particularly crucial in navigating host country environmental uncertainties. Despite its criticality, how foreign subsidiaries can benefit from effectively managing knowledge remains unclear. This study examines the extent to which market and technological turbulences influence two specific knowledge management platforms, knowledge transfer and knowledge codification, and subsequently, market responsiveness of foreign subsidiaries. Results from a survey of 140 foreign subsidiaries in China show that knowledge transfer and knowledge codification serve as two important platforms to mitigate the effects of environmental turbulence on local market responsiveness.
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