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1 – 10 of 185This paper explores how key insights from highly cited and well-used frameworks that describe the strategies and structures of MNCs are reflected in the international…
Abstract
This paper explores how key insights from highly cited and well-used frameworks that describe the strategies and structures of MNCs are reflected in the international configurations of US MNCs. After reviewing existing frameworks that highlight different MNC choices regarding the integration, responsiveness, and dispersion of firm value chain activities, I perform a cluster analysis on a comprehensive and confidential database of US MNCs. The results reveal five configurations which both support the importance of key insights from existing frameworks while at the same time highlighting underexplored configuration characteristics, like the low levels of integration in US MNCs, the global sourcing arrangements for accessing foreign inputs and distribution, different approaches to regional expansion, and the limited geographic expansion of US MNCs pursuing product diversification. I argue that these underexplored characteristics suggest directions for future research to better reflect the international configuration choices of MNCs.
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Multinational enterprises (MNEs) face twin pressures of maintaining a globally integrated brand while remaining responsive to local demands. Previous research has shown that…
Abstract
Purpose
Multinational enterprises (MNEs) face twin pressures of maintaining a globally integrated brand while remaining responsive to local demands. Previous research has shown that misunderstandings may surface from the way subsidiary employees read corporate messages, particularly if institutional and social distances between corporate headquarters (HQs) and subsidiaries are wide. Employer branding is sometimes used to help resolve such tensions if HQs are sensitive to signals from their subsidiaries in the policy development process. Thus, this paper addresses the question: to what extent does institutional proximity facilitates the creation and maintenance of socially legitimate employer brands in MNE subsidiaries.
Design/methodology/approach
The paper uses an interpretive approach in analysing two cases of multinational subsidiaries operating in Pakistan but with divergent HQ institutional distances (Northern Europe and Middle East). A qualitative approach to data collection was taken and ten semi-structured interviews with senior and middle managers and two focus groups of six lower level employees in each case organization were conducted.
Findings
The findings suggest that institutional proximity played a secondary role in establishing a legitimate employer brand whereas a receptive and responsive signalling process was of greater importance. The authenticity of the employer brand was stronger in the organization that was more receptive to the incoming signals from local employees compared to the firm that was rather institutionally closer due to shared customs and culture.
Practical implications
Findings point to the significance of the character and intensity of the employment relationship at a micro level as the honesty and credibility of organizational messages and interpreted and re-interpreted at a localized level, thereby bearing serious implications for both global and local managers.
Originality/value
These findings contribute to the IHRM literature on the integration-responsiveness problem, to the debate over institutional proximity, and to the influence of religion on people management.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
The study uses two case studies to explore the integration-responsiveness problem in multi-national enterprises and finds that locally sensitive employer branding and facilitating employee voice can help mitigate global-local tensions in religiously sensitive environments.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Antonios Georgopoulos, Eleftherios Aggelopoulos, Elen Paraskevi Paraschi and Maria Kalogera
In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the…
Abstract
Purpose
In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the integration-responsiveness (IR) framework with a contingency perspective, this study proposes that the performance success of distinct MNE subsidiary strategies depends on staffing choices. This study argues that performance differences of staffing choices such as assigned expatriates, self-initiated expatriates, former inpatriates and host-country nationals derive from their different knowledge/experience advantages regarding the intra-firm environment and local market conditions.
Design/methodology/approach
The study utilizes a unique sample of 169 foreign subsidiaries located in Greece that faced the outbreak of the COVID-19 pandemic (in 2020). For robustness reasons, this study also captures the imposition of capital controls (in June 2015).
Findings
This study finds important mediating performance effects of a diversified human resource portfolio across distinct subsidiary strategies in difficult times. Integration strategy tends to use more assigned expatriates, locally responsive strategy tends to utilize more host-country nationals, whereas multi-focal strategy favors self-initiated expatriates and former inpatriates, with positive subsidiary performance effects accordingly. So, staffing policies that are suitable to balance the needs of Human Resource Management (HRM) portfolio differ from strategy to strategy. Moreover, this study finds that managing HRM diversity is crucial in turbulent times.
Originality/value
While the empirical evidence has been predominantly accumulated from large economies, largely neglecting performance effects of MNE subsidiary staffing in crisis contexts, the analysis sheds light on a small open economy (i.e. the Greek context) emphasizing rapidly environmental deterioration. The findings extend existing theorizing on international performance and HRM management by providing an integrative conceptual framework linking integration-responsiveness motivated strategies with distinct groups of high-quality human resources under contingency considerations, so creatively synthesizing largely fragmented IB and HRM research streams. The study provides valuable insights into the performance role of non-conventional staffing choices such as self-initiated expatriates and former inpatriates, given that relevant studies examine either exclusively expatriates or compare expatriates with host country nationals, reaching inconclusive results.
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Hwy‐Chang Moon and Min‐Young Kim
The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global…
Abstract
Purpose
The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global competition.
Design/methodology/approach
Through the critical review over existing literature, this study first introduces a new framework explaining the global expansion of firms at the level of functional activities in the value chain, and then empirically tests the predictions of the new framework with data in the motor industry.
Findings
Empirical findings confirm the new model's predictions. First, each function in the value chain has a unique way of global expansion: the global strategy is suitable for the production function, while the multidomestic strategy is applicable to the marketing function. Second, each function follows a dynamic path of global expansion from domestic to transnational via either global or multidomestic, according to the innate characteristics of corresponding function. Finally, the degree of global expansion of a firm is positively correlated with its financial performance.
Research limitations/implications
Focusing on developing a new framework on global expansion, this study utilizes a rather small number of data and, therefore, requires readers' discretion when interpreting the results of statistical analyses.
Practical implications
With the dynamic diversification‐coordination model, managers can recognize the level and characteristics of their firms' global expansion, not only at the firm level but also at the functional level. This allows managers to establish a global strategy tailored to each function, thus reconciling possible conflicts generated from different interests among different functions in the firm.
Originality/value
First, this article introduces a new perspective of analyzing the global expansion of firms by shifting the level of analysis from the firm level to the functional level where the new framework can reconcile the constant debates on globalization. Second, this article suggests an intuitive and theory‐based index measuring the degree of global expansion of firms.
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– The purpose of this paper is to clarify how Chinese multinationals perceive factors affecting the integration-responsiveness (I-R) framework.
Abstract
Purpose
The purpose of this paper is to clarify how Chinese multinationals perceive factors affecting the integration-responsiveness (I-R) framework.
Design/methodology/approach
This study extends quantitative and conceptual studies that have clarified and assessed the underlying factors that influence multinational enterprises’ (MNEs) international business strategy choices relating to global integration and local responsiveness with the use of cross-level and in-depth interviews. Top management perceptions from nine Chinese MNEs with operations in Australia are detailed.
Findings
The study obtains empirical evidence on applying the I-R framework in the context of MNEs from emerging markets. Also the hybrid factors affecting both integration and responsiveness synchronously have been confirmed by Chinese multinationals.
Research limitations/implications
As a cross-sectional study, the paper focuses on senior executives’ perceptions on factors affecting the I-R framework. This analysis would be enriched by melding these perspectives with extensive secondary data on the companies concerned to assess the ratings assigned.
Originality/value
When studying factors affecting global integration and local responsiveness prior studies have centred on multinationals from advanced economies and/or their subsidiaries in emerging markets. This concentration leaves unclear the relevance of developed country centred findings to MNEs from emerging markets and their subsidiaries in advanced economies, and the demonstration of how emerging markets MNEs perceive factors affecting the I-R framework.
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Before I comment on the substance of the paper offered by Professor Yves Doz in this issue, I believe that a few comments on the author are appropriate, since this issue…
Abstract
Before I comment on the substance of the paper offered by Professor Yves Doz in this issue, I believe that a few comments on the author are appropriate, since this issue celebrates him as a distinguished scholar in international management. The importance of Yves to the development of international strategic management is evident in his discussion of the evolution of the theory of the MNC. The study of the interaction of international economics and management studies that has resulted in modern concepts of the multinational corporation is, to a significant degree, the consequence of his own work. The paper offered in this volume is a natural development from his stream of work and in many ways reflects the patterns that have made Professor Doz such an important scholar. As a management scholar, he is embedded in the tradition that he calls the phenomenon-driven approach to the MNC, and the distinct characteristic of most of his work is its grounding in the real world of organizations. However, the models with which he is most associated also display solid theoretical bases, removing them from the realm of small sample, case-based, observational empiricism, and providing the resonance for other studies that have made them classic. As one example, the Integration–Responsiveness model (Doz et al., 1981) is closely tied to observation of the strategies used by firms in different industries to pursue international markets. However, it also incorporates Industrial Organization theory to establish how the Structure-Conduct-Performance paradigm plays out in the international realm.
This qualitative case study research describes the human resource management (HRM) practices of four leading Indian information technology (IT) subsidiaries located in Mexico. The…
Abstract
Purpose
This qualitative case study research describes the human resource management (HRM) practices of four leading Indian information technology (IT) subsidiaries located in Mexico. The purpose of this study is to understand the implementation of these practices from the global integration-local responsiveness perspective.
Design/methodology/approach
This study adopts a qualitative multiple case-design approach to compare HRM themes across multiple cases. This research was conducted with HRM leaders from December 2011 through August 2012. This research involved interviews with 50 per cent of the population of Indian IT companies in Mexico. The interviews were tape-recorded and transcribed to maintain the rigor of the research. This study also followed other guidelines to maintain validity and reliability in research.
Findings
The results indicate that each function has to be considered independently because of contextual factors. Recruitment and compensation are usually localized as cultural norms, and local laws dictate following domestic practices. Performance management and professional development follow the guidelines from the headquarters as these companies seek standardization of work-related behaviors among their global employees.
Practical implications
This study provides preliminary guidelines for global IT practitioners who may be interested in doing business in Mexico. This paper also details challenges and guidelines for IT multinationals planning to establish in Mexico as articulated by the respondents.
Originality/value
This can be considered a pioneer research, as no other research papers (either qualitative or empirical) have explored the HRM practices of Indian multinational subsidiaries in Mexico. This paper thus provides a preliminary step in understanding this cross-cultural literature in emerging markets.
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James H. Taggart and Mark S. Harding
This paper analyses the strategy of Ciba‐Geigy′s industrial division at three hierarchical levels, concentrating on subsidiary strategy in the Classical Pigments business. The…
Abstract
This paper analyses the strategy of Ciba‐Geigy′s industrial division at three hierarchical levels, concentrating on subsidiary strategy in the Classical Pigments business. The analysis makes use of a number of models: the BCG matrix, White and Poynter′s model of subsidiary strategy, Porter′s configuration‐co‐ordination paradigm, and Prahalad and Doz’s integration‐responsiveness framework. The strengths and weaknesses of each are evaluated within this particular industrial environment. The main conclusion of the paper is that use of these four alternative analytical perspectives yields a more holistic view of strategy in the Classical Pigments business.
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Matevž Rašković, Maja Makovec Brenčič and Marko Jaklič
The purpose of this paper is to systematically describe the evolution of Bartlett and Ghoshal's transnational typology within an appropriate historical context, and to…
Abstract
Purpose
The purpose of this paper is to systematically describe the evolution of Bartlett and Ghoshal's transnational typology within an appropriate historical context, and to additionally review key antecedent works of other authors who contributed to its evolutionary nature.
Design/methodology/approach
The paper presents a comprehensive review of the literature by combining an evolutionary perspective with a Chandlerian business history approach.
Findings
The paper shows how Bartlett and Ghoshal's transnational solution concept was developed in light of the global economic changes of the 1970s and 1980s, as well as the managerial and strategic challenges faced by US MNCs. It shows how the transnational solution concept should not be seen as a single work, but rather the outcome of an academic discourse which lasted over a decade. The review of Bartlett and Ghoshal's stream of work since the mid 1980s also shows how the transnational solution concept developed gradually into its present form and through the integration of several antecedent concepts.
Originality/value
This paper describes not just the actual evolution of Bartlett and Ghoshal's transnational typology, but also systematically identifies and analyzes key antecedent works by other authors. This analysis has been overlooked and is at the same time key to the understanding of their typology. The employed evolutionary and business history perspectives within this paper are new to the international management literature. They should be especially valuable for graduate students and scholars who employ Bartlett and Ghoshal's typology, or anyone who wishes to understand the Zeitgeist of the time articulated by this seminal work, which will soon celebrate its 25th anniversary.
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