Search results
1 – 10 of 44Nobuko Nishiwaki and Akitsu Oe
This study examines the case of an initial training, called “Dojo”, invented and implemented at a production site in the Czech Republic. It clarifies the initial training program…
Abstract
Purpose
This study examines the case of an initial training, called “Dojo”, invented and implemented at a production site in the Czech Republic. It clarifies the initial training program implementation process and offers a conceptual framework for cooperative management of subsidiary activities at the site and firm.
Design/methodology/approach
This study conducts an in-depth analysis of qualitative data from the Czech production site over a five-year period. The theoretical base is the theorization and labeling phase of management innovation (MI), the final phase of which legitimizes a new management practice. Interview data, archival data, pictures and financial data are used for the analysis.
Findings
To legitimize the Dojo in the operational flow controlled by the site and firm, the Czech production site acquires validation of the Dojo from employees and board members of the Japanese and European headquarters, helping the site build trustful relationships with them. Training programs, process standardization and skills standardization of the workers offer benefits to the trainees, production site and firm.
Originality/value
The authors offer theoretical insights into MI at the subsidiary-level, which past studies have not differentiated at the firm-level. The authors also provide details of the implementation and management of initial training for newly hired blue-collar workers at the production site. The findings complement related literature on human resource management and operational management.
Details
Keywords
Kader Sahin, Ekrem Tatoğlu, Kubra Mert, Tuğba Kaplan and Ismail Golgeci
This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors…
Abstract
Purpose
This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors affect Türkiye’s foreign direct investment (FDI).
Design/methodology/approach
This study develops a multi-perspective framework that integrates the ownership, location and internalization (OLI) paradigm (Dunning and Lundan, 2008) and the linkage, leverage and learning (LLL) model (Mathews, 2006) with neo-institutional theory to explain the internationalization of EBGs. It adopts a multiple-case study research method relying on 14 semi-structured interviews with top executives to explore the internationalization strategy of a set of Turkish BGs.
Findings
This study supports the combination of the OLI paradigm, the LLL model and neo-institutional theory to explain EBGs’ internationalizing behaviors. Turkish BGs have adopted both asset exploitation and asset augmentation internationalization strategies. The institutional legitimacy mechanism moderates the internationalization motives of Turkish BGs, and their host country location choice and normative pressures are more salient than their regulative and cognitive pressures.
Research limitations/implications
This study is based on a sample of EBGs from Türkiye, and this restriction limits the generalizability/applicability of the findings to BGs globally.
Originality/value
Few studies have considered EBGs and their internationalization strategies in the international business field. This paper puts forward an integrated framework for analyzing internationalization and legitimacy in the institutional context of EBGs. This study highlights that BGs bridge institutional voids. Focusing on Turkish BGs helps to answer Granovetter’s Coasian question and contributes to the understanding of emerging countries’ economic development.
Details
Keywords
Priscila Laczynski de Souza Miguel and Andrea Lago da Silva
This paper aims to investigate how purchasing organizations implement supplier diversity (SD) initiatives over time.
Abstract
Purpose
This paper aims to investigate how purchasing organizations implement supplier diversity (SD) initiatives over time.
Design/methodology/approach
A multiple case study approach was conducted. Data were collected through in-depth interviews with participants from purchasing organizations, intermediary organizations and diverse suppliers.
Findings
The research suggests that the SD journey encompasses three different, but interrelated stages before full implementation is achieved: structuring, operation and adaptation. The findings also provide evidence that SD implementation in Brazil is highly influenced by the lack of a consistent knowledge base and the lack of legitimized intermediary organizations.
Research limitations/implications
Using a temporal approach to understand how different practices suggested by the literature have been managed by practitioners over time, this study contributes to the understanding of the path to effective SD implementation and how intra- and interorganizational context influences this journey.
Practical implications
By identifying which practices should be adopted during different phases of SD implementation and proposing ways to overcome some of the inherent challenges, managers can better plan and allocate resources for the adoption of a successful SD initiative.
Social implications
This research demonstrates how organizations can promote diversity and reduce social and economic inequalities by buying from diverse suppliers.
Originality/value
Using a temporal approach, the research empirically investigates how different purchasing organizations have implemented and managed the known practices and dealt with the challenges faced when trying to adopt SD.
Details
Keywords
Suveera Gill, Taruntej Singh Arora and Karan Gandhi
Profit shifting is a matter of great concern for governments internationally. It leads to the loss of tax revenues and puts multinational corporations (MNCs) in a disparate…
Abstract
Purpose
Profit shifting is a matter of great concern for governments internationally. It leads to the loss of tax revenues and puts multinational corporations (MNCs) in a disparate position. Lately, due to the aggressive stance of the Indian taxman, several Indian MNCs are planning to minimise their tax outflows. This paper aims to study profit-shifting drawing from the institutional theory for the Indian MNCs.
Design/methodology/approach
The sample comprises 679 MNCs listed on the Bombay Stock Exchange or the National Stock Exchange with either Indian parents with foreign subsidiaries (553) or Indian subsidiaries of a foreign parent (126) for FY 2013–14 to FY 2018–19. A fixed-effect panel regression technique was invoked to examine tax rate differential motivated profit-shifting undertaken by MNCs with the moderating effect of international presence and patents.
Findings
The results suggest that MNCs shift their profits to take advantage of differences in global tax rates when they have an international presence in at least five tax countries. Further, profit shifting is likely towards no-tax compared to low-tax countries, with the presence of patents in an MNC group having no significant impact.
Originality/value
Losses to the government revenue due to profit shifting by MNCs are rather severe in emerging economies. The study provides the first empirical evidence of the direction of profit shifting with the moderating effect of the extent of global presence and group patents, which would interest scholars in the field. The findings provide valuable insights to the policymakers, highlighting the urgent need to operationalise the general anti-avoidance taxation rules.
Details
Keywords
Hany Elbardan, Donald Nordberg and Vikash Kumar Sinha
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Abstract
Purpose
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Design/methodology/approach
The study is based on the comparative analysis of internal auditing and its transformation due to ERP implementations at two case firms operating in the food sector in Egypt – one a major Egyptian multinational corporation (MNC) and the other a major domestic company (DC).
Findings
Internal auditors (IAs) at MNC saw ERP implementation as an opportunity to reconstruct the legitimacy of internal auditing work by engaging and partnering with actors involved with the ERP change. In doing so, the IAs acquired system certifications and provided line functions and external auditors with data-driven business insights. The “practical coping mechanism” adopted by the IAs led to the acceptance (and legitimacy) of their work. In contrast, IAs at DC adopted a purposeful strategy of disengaging, blaming and rejecting since they were skeptical of the top management team's (TMT's) sincerity. The “disinterestedness” led to the loss of legitimacy in the eyes of the stakeholders.
Originality/value
The article offers two contributions. First, it extends the literature by highlighting a spectrum of behavior displayed by IAs (coping with impending issues vs strategic purposefulness) during ERP-driven technological change. Second, the article contributes to the literature on legitimacy by highlighting four intertwined micro-processes – participating, socializing, learning and role-forging – that contribute to reconstructing the legitimacy of internal auditing.
Details
Keywords
Nicolas Aubert, Miguel Cordova and Gonzalo Hernandez
This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American…
Abstract
Purpose
This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American countries with deep social and economic inequalities.
Design/methodology/approach
This is a qualitative case study which conducted interviews with representatives of the French MNE and its subsidiaries in Peru and Mexico.
Findings
The employee stock purchase plans offered by the company to its employees support the achievement of the sustainable development goals (SDGs) 1, 8 and 10 in these countries.
Social implications
The authors argue that MNEs could become flagships in the SDG achievement in emerging economies.
Originality/value
By contributing to better workplace outcomes and enhanced corporate performance, ESO is in line with SDG 8. ESO also fulfills SDGs 1 and 10 by allowing employees to build up savings and wealth, whose lack is the main source of inequality and poverty. Reciprocity and binary economics theories explain these relationships.
Details
Keywords
Martin David Owens and Elizabeth Johnson
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international…
Abstract
Purpose
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.
Design/methodology/approach
This is a conceptual paper.
Findings
Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.
Originality/value
The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.
Details
Keywords
This research investigates the politics of smiling as a central driver for employees to navigate power dynamics within the prevailing discourse at a Japanese retailer in Hong…
Abstract
Purpose
This research investigates the politics of smiling as a central driver for employees to navigate power dynamics within the prevailing discourse at a Japanese retailer in Hong Kong. Existing critical management studies emphasize power in organizational language, often neglecting the role of employees’ emotions in sustaining discourse. This paper examines employees’ smiles as tools for legitimizing (sensegiving) and interpreting (sensemaking) discourse. It explores how the use of their emotional display influenced the outcome of the company’s attempt to legitimize discourse. This research divides the discourse process into five phases: formation, codification, implementation, monitoring and adaptation.
Design/methodology/approach
Using the critical sensegiving and sensemaking approach, this paper discusses how employees’ interpretations of corporate policies shape the perpetuation of dominant discourse and outcomes. Data were collected through the author’s long-term participant observation in the Hong Kong branches of Japanese retailers.
Findings
The formation phase discusses the emergence of a dominant discourse favoring Japanese practices in the company’s Hong Kong operations. Codification involves the conceptualization of standard smiles in customer service policies. In practice (implementation, monitoring and adjustment), employee smiles serve as tools for negotiating power—shaping careers, earnings and shift preferences. This paper argues that this discourse shapes organizational norms while employees’ sensemaking influences the discourse implementation. Furthermore, this paper highlights the transnational impact of Japanese culture in Hong Kong, which has shaped the way Japanese top management and local employees interpret the dominant discourse.
Originality/value
This study demonstrates the importance of discussing the display of emotions and employees’ intentions to understand their impact on the outcome of discourse implementation. This study also reiterates the significance of discussing the influence of one culture on another to understand the broader social context that affects the perpetuation of discourse.
Details
Keywords
The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their…
Abstract
Purpose
The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable Development Framework in the mining sector in 2008.
Design/methodology/approach
Using the techniques of content analysis and interpretive textual analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and “general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.
Findings
A total of 830 out of a maximum of 1,620 social and environmental responsibility indicators, representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127 governance and 111 general) were identified and examined in company SER. The study showed that the sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy via disclosures. Such practices raise questions regarding company-specific disclosure policies and their possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as refocus on company-specific issues of priority in their disclosures. While such practices may appear appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and moral legitimacy.
Research limitations/implications
A limitation of this research is that the author relied on self-reported corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.
Practical implications
The findings from this research will help future social and environmental accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.
Social implications
With growing large-scale mining activity, potential social and environmental footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legitimacy threat for the whole mining industry.
Originality/value
This study innovates by focusing on Suchman’s (1995) typology of legitimacy framework to interpret SER in an industry characterised by potential social and environmental footprints – the mining industry.
Details
Keywords
Tamer K. Darwish, Osama Khassawneh, Muntaser Melhem and Satwinder Singh
This paper aims to explore the strategic and evolving role of human resource management (HRM) directors within the context of underdeveloped institutional arrangements. The study…
Abstract
Purpose
This paper aims to explore the strategic and evolving role of human resource management (HRM) directors within the context of underdeveloped institutional arrangements. The study focuses on India and conducts a comparative analysis of the roles of HRM directors in both multinational enterprises (MNEs) and domestic firms.
Design/methodology/approach
Survey-based data from the HRM directors of 252 enterprises were gathered for the comparative analysis, including both multinational and domestic enterprises.
Findings
HRM directors in MNEs lack the proficiency required to effectively fulfil their strategic role. In addition, there has been a notable shift in the responsibilities of HRM directors in MNEs, with increased emphasis on labour movements and trade union negotiations, as opposed to traditional human resource (HR) activities. This shift suggests that the role of HRM in MNEs operating in India has been influenced by local isomorphic forces, rather than following a “pendulum swing” between home and host country institutional pressures. The prevalence of informality in the Indian institutional arrangements may act as a strong counterforce to integrating the strategic agency of MNEs' home country HRM directors into the organizational structure. Despite facing resistance from the local institutional context, HRM directors in MNEs are responding with a pushback, prioritizing labour movements and trade union negotiations over core HRM activities.
Research limitations/implications
The study highlights the broader implications for theory and practice, shedding light on the challenges faced by HRM directors in navigating incoherent institutional arrangements. It emphasizes the need for a deeper understanding of local forces in shaping HRM practices within multinational settings.
Originality/value
We contribute to the comparative HRM literature by elaborating on power struggles that HRM directors face amid the dichotomies of formal power and authority that are encoded in the organizational structure versus culturally contingent power that can be accrued from engaging in informality. We also highlight their engagement in prolonged institutional mediation and change, which serves as a compensatory mechanism for the institutional shortfalls they encounter within the context of emerging markets.
Details