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Article
Publication date: 7 June 2021

Stephen Brammer, Giulio Nardella and Irina Surdu

This paper aims to put forward a definition of corporate social irresponsibility (CSI) which is relevant to the study of complex organizations and in particular, the multinational…

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Abstract

Purpose

This paper aims to put forward a definition of corporate social irresponsibility (CSI) which is relevant to the study of complex organizations and in particular, the multinational enterprise (MNE). This paper then offers a framework as a foundation to discuss the institutional complexity of CSI to aid international business (IB) scholars, practitioners and policymakers achieve a clearer understanding of the mechanisms that may penalize and subsequently deter MNE irresponsibility.

Design/methodology/approach

In presenting the approaches taken by social regulation researchers and IB policy scholars to understand MNE irresponsibility, this paper proposes a definition of CSI and explicates the various mechanisms associated with deterring MNEs from behaving irresponsibly.

Findings

Therefore, how can MNEs be deterred from behaving irresponsibly? To further the research agenda concerning CSI in IB, far less common are a definition of CSI relevant to the complex IB context; and a framework that explicates both the legal and social components of CSI, particularly as they unfold in a complex, diverse and often divergent institutional landscape. Overcoming these two primary obstacles is important because when complexities associated with CSI emerge, researchers need to be able to ascertain and expound upon what they are observing so that comparisons can be made and more MNE CSI research can be accrued over time.

Research limitations/implications

To help the development of future research, we offered a more precise definition of CSI, one which is more relevant to the study of the MNE and the complex contemporary IB environment. By embracing complexities, this paper also outlines an institutional complexity approach, one which highlights both the role of formal and informal regulatory institutions. Though IB has traditionally focused on the role of formal regulation, there is much more to be unearthed by exploring the additional and concurrent influence of social regulatory institutions.

Practical implications

There is a high level of heterogeneity in the motivations and modes used by MNEs to enter international markets, which likely influence efforts made by these firms to adapt to different types of formal and social institutional pressures. When firms invest significantly in a market, they have a greater economic dependence in that market and institutions have a greater opportunity to exert pressures. For instance, foreign direct investment requires a higher level of (longer-term) commitment, transfer of capital, exchange of expertise and learning, meaning that firms depend much more on local authorities to perform in the market and accomplish their goals.

Social implications

Enabled by new technologies and, particularly, social media platforms, stakeholders can now engage in organized forms of regulatory activities, as is evident in the lesbian, gay, bisexual, transgender, queer, black lives matter and gender equality social activist movements. Through prominent collective actions, the impacts of globally organized social movements may be increasingly non-location bound, placing MNE managers at the heart of new challenges and opportunities to engage with global stakeholders. Infomediaries such as the press, have always been of historical importance, due to their role in shaping stakeholder expectations and opinions of the firm and thus, the reputation and legitimacy of that firm.

Originality/value

This study enriches the understanding of what CSI is, why we are likely to observe it in practice and how it affects MNEs. This paper offers a definition of CSI that is sufficiently nuanced to capture the complexity of the contemporary IB environment, as well as a framework that, this paper proposes, presents a clearer understanding of the institutional mechanisms that may deter MNEs from behaving irresponsibly. By encouraging scholars to examine the institutional complexity of MNE CSI, the paper hopes to contribute toward building a bridge which connects the IB policy and social regulation research streams.

Case study
Publication date: 6 February 2024

Irina Surdu and Giulio Nardella

The data used to present this case was collected from secondary data sources. These sources included media reports associated with Michael Jordan and his trajectory since entering…

Abstract

Research methodology

The data used to present this case was collected from secondary data sources. These sources included media reports associated with Michael Jordan and his trajectory since entering the sport, as well as specific information published about his time at the Chicago Bulls. Another key source of information is the ESPN documentary conducted specifically on Jordan’s relationship with his National Basketball Association (NBA) team.

Case overview/synopsis

The case follows the story of Michael Jordan, who took his team, the Chicago Bulls, to fame in a rather controversial manner. To do so, Michael Jordan had to alter his leadership style over the years to be respected as a leader and motivate his team to win one NBA championship after another. On 20th April 2020, ESPN’s “The Last Dance”, a 10-part documentary about Michael Jordan and his time playing for the Chicago Bulls was released to much acclaim. The documentary became highly noted as Jordan himself, both directed and starred in the documentary. Jordan’s great achievements stood out, but so did the conflicts that the basketball star had with The Bulls’ management team and mainly, his teammates. Relationships between teammates were far from harmonious, which led to questions around whether Michael Jordan was as good a leader, as he was a star player. Cultural change within the organisation was primarily linked to the often-contested leadership of Jordan.

Complexity academic level

The case can be used at UG, MSc and MBA levels. It works for in-person teaching and for online teaching. It is most suitable in leadership, strategy and strategy in practice courses. However, it is critical to note that the case can shed light on the dynamics that leaders and teammates have within their teams. Therefore, this case may be valuable to students studying courses where they themselves must work in groups and oftentimes encounter challenges in managing their team. These challenges can arise at all levels of experience. As such, the case provides particularly useful reflection for decision makers who may be beginning to develop their leadership skill (UG), those who have already experienced working in teams (MSc) or leading teams themselves (MBA, Executive MBA). The case addresses the challenges associated with achieving high team motivation and performance. It also sheds light on the challenges associated with leading a cultural change within a team and the approaches of different actors involved. It may be best to introduce the case in the context of a (1.5–2 h) workshop once students understand the basic frameworks and tools used to analyse leadership styles and their characteristics.

Details

The CASE Journal, vol. ahead-of-print no. ahead-of-print
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 9 April 2018

Irina Surdu, Kamel Mellahi and Keith Glaister

The purpose of this paper is to examine the theories used to study the international equity-based entry mode strategies of emerging market multinationals (EMMs) and the…

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Abstract

Purpose

The purpose of this paper is to examine the theories used to study the international equity-based entry mode strategies of emerging market multinationals (EMMs) and the contribution of these studies to extant literature.

Design/methodology/approach

The authors conducted a systematic review of the literature. A total of 73 articles were identified from key management, international business and international marketing journals published between 2000 and June 2015. Articles were analysed according to the theory(ies) used, thematic area, methodology, home/host countries studied and findings.

Findings

Despite the great interest around the topic of how the antecedents and outcomes of EMMs’ international entry mode strategies may challenge and amend existing theories, the findings that come out of this research mirror patterns observed in the entry mode literature in general. Whilst traditional perspectives such as internalisation theory and the OLI paradigm remain prevalent, a growing number of studies draw on institutional theory and combine multiple theoretical perspectives. Newer theories developed specifically to study EMMs (e.g., the springboard perspective) are used in only five studies and challenged to differentiate their theoretical underpinnings from extant literature. Overall, the theoretical contribution of EMM studies is simply a change in emphasis from the role of firm-specific factors towards the influence of home country institutions on entry mode strategies. The authors conclude that the literature has only made tweaks at the edge of theories with no significant changes to extant theorisations.

Originality/value

This is the first systematic review of the literature focusing specifically on the international equity-based entry mode strategies of EMMs.

Details

International Marketing Review, vol. 35 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 4 March 2021

Irina Surdu and Edith Ipsmiller

Going back into previously exited markets is a significant management risk. But, how are re-entry risks managed? By adding strategic reference point (SRP) rationales to the risk…

Abstract

Going back into previously exited markets is a significant management risk. But, how are re-entry risks managed? By adding strategic reference point (SRP) rationales to the risk management literature, this chapter examines re-entry after initial entry and divestment on a sample of 654 multinational enterprise (MNE) re-entrants. The authors move away from narrow risk management lenses according to which risks happen in isolation and theorize that MNEs simultaneously manage international risk by exploiting the trade-offs among external and internal sources of risk. The authors explain that, for re-entrants, exit may become the SRP for evaluating future strategic choices. The results suggest that re-entrants tend to manage re-entry risk by choosing partner-based modes that enable them to maintain strategic flexibility at re-entry. Surprisingly perhaps, market-specific experience acquired during the initial market foray does not provide strategic flexibility, in that highly experienced firms still experience risk trade-offs.

Details

The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

Keywords

Content available
Book part
Publication date: 4 March 2021

Abstract

Details

The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

Article
Publication date: 18 June 2020

Qun Tan and Carlos M.P. Sousa

To help firms with their international operations, governments often create policies and support mechanisms, but its influence on the firm's exit decision has so far been ignored…

Abstract

Purpose

To help firms with their international operations, governments often create policies and support mechanisms, but its influence on the firm's exit decision has so far been ignored. Hence, the purpose of this study is to examine the impact of home-country governmental support on the firm's exit decision.

Design/methodology/approach

The authors test their conceptual model using multiple informants as well as secondary data from China. The sample consists of 360 valid questionnaires from 180 firms. Binary logistics regression is used to test the conceptual framework.

Findings

By demonstrating that resource-based and institutional constructs are highly dependent, the authors show how home-country governmental support interacts with the foreign affiliate's past performance to explain the decision to remain or exit a foreign market. The results indicate that while governmental financial support reduces the likelihood of exiting a poorly performing business in the foreign market, governmental non-financial support surprisingly has an opposite effect.

Originality/value

While there has been an increasing number of firms exiting foreign markets, this area of research is still limited. The study also contributes to the literature by focusing on home-country governmental financial and non-financial support to explain the firm's exit decision – an issue that has been ignored and is expected to be particularly relevant for firms from emerging economies.

Details

International Marketing Review, vol. 37 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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