Search results

This chapter analyzes the strategic responses by U.S. and European multinational enterprises (MNEs) in the oil and automobile industries to the global climate change issue. We examine and attempt to explain the differences across regions, across industries, and the changes over time. Traditional economic drivers of strategy do not provide a satisfactory account for these differences, and the chapter focuses instead on the conflicting institutional pressures on MNEs and the implications for their climate strategy. The home-country institutional context and individual corporate histories can create divergent pressures on strategy for MNEs based in different countries. At the same time, the location of MNEs in global industries and their participation in “global issues arenas” such as climate change generate institutional forces for strategic convergence. It appears that local context influenced initial corporate reactions, but that convergent pressures predominate as the issue matures.

Every year, tonnes of flower waste from religious places is dumped into India’s holiest river Ganges, polluting it to virtual death. Pesticides and insecticides used in growing these flowers mix with the water, affecting millions of lives through water-borne diseases. Most others may just lament these facts, Ankit Agarwal and Karan Rastogi, childhood friends from Kanpur, used them as inspiration to innovate. Two years of relentless experimentation led to a brilliant idea; that of recycling the flower waste. They founded HelpUsGreen® in 2014 to convert the waste into bio-fertilisers and lifestyle products. Widely appreciated and heavily awarded now, success has not come easy for this well-educated duo. HelpUsGreen® processes hundreds of kilos of flower waste, creating employment for hundreds of underprivileged women. An entirely bootstrapped project with no carbon foot print, the venture hopes to revive the Ganges through Flowercycling®. Currently at 8.5 tonnes per day and at the tipping point of scaling, HelpUsGreen® hopes to process over 50 tonnes of flower waste per day by 2020. Apart from the environmental impact, HelpUsGreen® has achieved huge societal impact, employing over a thousand women who did not previously have formal employment. What also makes the social entrepreneurs stand apart is their entrepreneurial market savviness. They have positioned their products not at the sympathy market but at the high-end premium market. Their products sell under the name ‘Phool’. HelpUsGreen® has set its eyes firmly on spreading operations across 2,000 kilometres along the Ganges and creating over 25,000 jobs for women.

The role of management control has not received sufficient attention in the literature on value creation so far. Therefore, this paper aims to investigate the role of control in value creation in industrial networks. More specifically, the aim is to examine the management and control of interfaces between key resources within and between firms, in the networks surrounding firms, when they attempt to create value. All the firms that take part in a value-creation process have both formal and informal control systems: these firms have budgets, specific routines, reward systems, and sanctioned “ways to behave.” The paper relates the Industrial Marketing and Purchasing (IMP) group's research on interaction, relationships, and networks with control literature, and presents a framework for controlling resource interfaces in a network setting. Two in-depth cases illustrate the role of control in value creation. The first case covers the development of a low-weight newspaper grade that Holmen and its paper mill Hallsta initiated. The second case examines the attempt to develop and commercialize a new, energy efficient pulping technology.

This chapter explores the opportunities and challenges for Western firms that wish to engage in manufacturing operations in Iran, and particularly in the automotive industry. Although Iran has a long and fruitful history of embracing foreign investment, collaboration with foreign firms suffered in the aftermath of the Islamic Revolution in 1979. The imposition of UN sanctions in 2012, following the disagreements between Iran and leading Western powers over Iran’s nuclear policy, has resulted in a further exodus of foreign manufacturers from Iran, hurting the production quality, adoption of up-to-date technology and alignment to international standards for manufacturing, such as vehicle safety and engine emissions in Iran.

The removal of sanctions, contingent on the success of nuclear negotiations between Iran and leading world powers, could provide Iran with an opportunity to recommence manufacturing collaboration with Western firms. The case of the automotive industry discussed in this chapter indicates some of the challenges that Iran is likely to face if it once again wants to become a player in international markets.