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1 – 10 of 204Tugce Ertem-Eray and Eyun-Jung Ki
Using political corporate social responsibility (PCSR) as a theoretical framework, this study aims to examine how multinational corporations (MNCs) can function as nonstate actors…
Abstract
Purpose
Using political corporate social responsibility (PCSR) as a theoretical framework, this study aims to examine how multinational corporations (MNCs) can function as nonstate actors in public diplomacy efforts during the Russia–Ukraine war.
Design/methodology/approach
A thematic analysis using qualitative content analysis was conducted on 98 new releases from the websites of the top 50 MNCs listed in the Fortune Global 500.
Findings
The findings indicate that MNCs elucidate their initiatives aimed at providing a secure environment for war victims through their news releases, with notable variations in responses based on the companies' geographical location. MNCs also mentioned strengthening the power of public authorities by rebalancing power dynamics between governments and intergovernmental initiatives under war conditions.
Originality/value
This study is one of the first empirical investigations to research corporate diplomacy and explore the theoretical implications of PCSR for corporate diplomacy.
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Muntaser J. Melhem, Osama Khassawneh, Tamer K. Darwish, Satwinder Singh and Abdullah N. Alanezi
The role of distinct institutional context in shaping employment practices is particularly evident in emerging markets where institutional measures are often evolving and not yet…
Abstract
Purpose
The role of distinct institutional context in shaping employment practices is particularly evident in emerging markets where institutional measures are often evolving and not yet fully established. This presents several challenges, particularly for multinational corporations (MNCs) operating in such contexts. This research paper aims to provide a comparative analysis of HRM practices, specifically recruitment and selection, internal career opportunities and performance appraisals between domestic and multinational companies in a large emerging economy, that is India.
Design/methodology/approach
In this study, survey-based data was gathered from a diverse sample of 252 companies, comprising both domestic enterprises (DEs) and MNCs, to collect comprehensive data on HRM practices. The aim is to provide a nuanced understanding of the variations in HRM approaches between DEs and MNCs, taking into account the unique institutional context of the Indian market.
Findings
Contrary to initial expectations, the study’s findings do not support the hypothesis that MNCs would prioritize more rigorous and effective HRM practices compared to DEs in the Indian context. Instead, the results reveal that DEs place a greater emphasis on effective HRM practices than their MNC counterparts, despite the latter’s international reach and operational success. These findings shed light on the distinctive HRM strategies used by MNCs and DEs when navigating the complexities of the Indian market.
Originality/value
This study contributes to the existing IB literature by providing a comparative perspective that emphasizes DEs proclivity for institutional entrepreneurship and change. Exploring the resource dynamics for both MNCs and DEs, the study showcases them as divergent adaptive navigators within (in)formal institutional logics, adept at navigating and influencing institutional structures and shaping distinct HRM practices. The findings challenge traditional assumptions about HRM priorities of MNCs and DEs.
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Md. Khalid Hossain and Sharif Nafe As-Saber
The paper aims to investigate key aspects of climate change adaptation strategies of Multinational Corporations (MNCs) across two different climate-vulnerable country contexts…
Abstract
Purpose
The paper aims to investigate key aspects of climate change adaptation strategies of Multinational Corporations (MNCs) across two different climate-vulnerable country contexts, developed, i.e. Australia and developing, i.e. Bangladesh, while identifying the key factors affecting the formulation and implementation of such strategies.
Design/methodology/approach
The research uses a qualitative research method using interviews and document analysis while considering distinctive factors manifest in Australia and Bangladesh and focussing on the agricultural seed business sector.
Findings
The research reveals that no specific pattern of adaptation strategies exists across MNCs. They either follow a proactive “deliberate” strategy or a reactive “emergent” strategy. MNCs also follow a distinct strategy, “subliminal”, i.e. unintended or inadvertent strategy, by following the “business as usual” approach.
Practical implications
In recent years, many MNCs have started embracing strategies to reduce their negative environmental footprint but barely adopted any formal strategies to adapt to climate change impacts on their business operations. This study provides insights into the existing climate change adaptation strategies of MNCs, which could be beneficial for companies in better planning and implementing their existing as well as future climate change adaptation strategies.
Originality/value
Based on a developed-developing country comparison and together with a novel focus on the agricultural seed business sector, the paper has used a variety of business strategies in providing insights and understanding of the status of MNC climate change adaptation strategies. The research has identified and coined the term, “subliminal” or unintended strategy as a new addition to the MNC adaptation strategy literature.
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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.
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María Isabel Barba-Aragón, Raquel Sanz-Valle and María Eugenia Sanchez-Vidal
The objective of this study is to analyze the process of reverse knowledge transfer (RKT) occurring in multinational companies (MNCs), examining whether headquarters' absorptive…
Abstract
Purpose
The objective of this study is to analyze the process of reverse knowledge transfer (RKT) occurring in multinational companies (MNCs), examining whether headquarters' absorptive capacity and the human resource management (HRM) practices developed by the parent unit influence success.
Design/methodology/approach
The data were collected through a questionnaire completed by the human resource manager of multinational company (MNC) headquarters. The analysis has been carried out on a sample of 115 Spanish MNCs by using structural equation models (SEM).
Findings
The results indicate that a parent firm's absorptive capacity positively influences RKT and that, in turn, this absorptive capacity is greater if headquarters implement certain practices of employee staffing, training, participation and performance appraisal.
Originality/value
This study extends existing research on RKT by examining the absorptive capacity of headquarters. Its main contribution is to provide evidence that MNCs can improve their RKT through HRM practices developed by the parent unit. This is original because most studies on RKT focus on HRM practices used by subsidiaries.
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Huiping Xian, Yingying He, Fanke Huang and Paul Latreille
This study aims to advance knowledge in international management research about how researchers’ cultural identity in fieldwork encounters may be grounded in the choice of…
Abstract
Purpose
This study aims to advance knowledge in international management research about how researchers’ cultural identity in fieldwork encounters may be grounded in the choice of language in multicultural and multilingual projects.
Design/methodology/approach
The study is based on critical reflections on the experience of two co-authors as Chinese nationals conducting research in overseas Chinese multinational corporations (MNCs) in developing economies.
Findings
Drawing on social identity theory, the authors demonstrate that the cultural identity and cultural insider/outsider positionality of both the researcher and research participants can be shaped by language, translation and other artefacts in cross-cultural interviews, constantly being shifted, managed and renegotiated during qualitative interviewing. This study highlights the politics of language which, when combined with other forms of power relations, such as the researcher’s perceived status, economic development of the MNCs’ home country and the participants’ organisational hierarchy, affect power distribution between the researcher and participants. Researchers often need to move from being an “insider” to an “outsider” and often to an “in-betweener” at different stages in an interview interaction to balance power.
Originality/value
This study contributes to international debates about the complex interplay of languages, politics and identity in multilingual and multicultural qualitative research. In contributing to these literatures, the authors focus on the relatively under-researched Chinese MNCs in other developing countries including Mongolia and Tanzania. Recommendations for researcher training and reflexivity are proposed.
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Yu-Ching Chiao, Chun-Chien Lin and Yu-Chen Chang
This study explores the evolutionary relationship between multimarket contact (MMC) and competitive actions among multinational corporations (MNCs). It aims to enhance the…
Abstract
Purpose
This study explores the evolutionary relationship between multimarket contact (MMC) and competitive actions among multinational corporations (MNCs). It aims to enhance the understanding of international market competition by incorporating insights into dynamic competition and parent–subsidiary relationships.
Design/methodology/approach
A structured content analysis was used to identify the competitive actions of global shipping liners. The dataset includes 8,204 actions identified across nine global arenas. Data were collected from 6,553 monthly news articles on Alphaliner. The period covered is from January 1, 2015, to June 30, 2023.
Findings
The results indicate that a higher degree of MMC leads to greater competitive aggressiveness, supporting the combination of mutual forbearance and the Red Queen effect. Additionally, market importance triggers the mutual forbearance effect, whereas competitive rivalry is weaker for overlapping cross-market contacts. Furthermore, local competitive intensity increases MNCs' contact and echoes the Red Queen effect, especially for subsidiaries facing increasing pressure from local responsiveness.
Research limitations/implications
Limitations include reliance on Alphaliner, potential inaccuracies from proxy variables, and unmeasured headquarters–subsidiary interactions. Future research should explore other industries and extend the study period for broader applicability and generalization.
Practical implications
By interlacing mutual forbearance with the Red Queen effect within a coopetition framework, managers can devise strategies to balance competition and collaboration, thereby ensuring long-term viability and growth in global markets.
Originality/value
This study extends the concept of MMC to the context of global shipping liners, a previously underexplored sector. Unlike earlier research, this study empirically examines MMC dynamics globally and integrates mutual forbearance and the Red Queen effect.
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The main goal of the article is to identify, analyze and evaluate the mediating role of HRM outcomes in the relationships between employee retention (ER) and company performance…
Abstract
Purpose
The main goal of the article is to identify, analyze and evaluate the mediating role of HRM outcomes in the relationships between employee retention (ER) and company performance results, with a specific focus on discerning any shifts or differences in this mediation across non-crisis and crisis times in the foreign subsidiaries of MNCs.
Design/methodology/approach
The empirical research covered 200 MNCs headquartered in Central Europe. A Computer-Aided Telephone Interviewing (CATI) method was used for data collection. The raw data was adjusted using the Efficiency Index (EI) to accurately represent the relationships between the variables under study. The research hypotheses were examined, and the mediating effects were assessed through Partial Least Squares Structural Equation Modeling (PLS-SEM).
Findings
The research findings provide valuable insights by exploring the mediating role of HRM outcomes between ER and company performance results, highlighting HRM’s crucial role in enhancing results in finance, innovation and quality, particularly during crises. They underscore the strategic importance of HRM in fostering organizational resilience and innovation.
Originality/value
The study offers a new methodological contribution through introducing the EI for a precise quantitative evaluation of the relationships between ER, HRM and company performance results. However, the greatest added value of this article is the creation of the ER-HRM Mediation Theory of Organizational Resilience through Innovativeness in Crisis.
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Masaaki Furusawa and Shuichi Ishida
Parent companies usually control a subsidiary’s operations and decision-making processes and policies. This study highlights how subsidiary research and development (R&D…
Abstract
Purpose
Parent companies usually control a subsidiary’s operations and decision-making processes and policies. This study highlights how subsidiary research and development (R&D) contributes to a parent company’s global strategy formulation in the context of changes in the integrated responsiveness framework and transnational models.
Design/methodology/approach
We conducted an interview survey with 149 companies in Japan, of which 92 engaged in R&D activities. Ten companies, 9 R&D managers, and one managing director of different industrial companies were selected.
Findings
We identified four cases of how R&D subsidiaries incorporate their requirements into global strategies in the context of changes. Four methods of integrating R&D subsidiaries’ strategies with the parent company are explained. Further, we show that global strategy formulation should not be restricted to headquarters, as dilemmas occur within competing departments in the subsidiaries, which negatively impact innovation and performance. Digital transformation suggests the potential of a new subsidiary management model—the “silent headquarters”.
Research limitations/implications
We failed to discuss how headquarters’ R&D is implemented in strategy formulation. This is because the interview survey was conducted from the perspective of how subsidiary R&D is involved in integrated strategy formulation. Additionally, we did not investigate the actual performance achieved by integrated and non-integrated R&D organisations. Problems faced by subsidiaries in other locations, other departments within the subsidiary country, and the solutions to these problems, should be addressed in future research.
Practical implications
The practical implications of our findings relate to subsidiary-country relationships, inter-facility competition, and global strategy formulation. Active involvement of subsidiary R&D in strategy formulation, considering local requirements, can enhance subsidiary location advantages. Integrated strategies focused on global customers may overlook subsidiary R&D strengths and hinder innovation due to internal dilemmas and competition. Strengthening subsidiary R&D involvement and considering local context can promote innovation and flexibility beyond meta-national management. The concept of Silent HQ is suggested, reducing duplication and coordination issues through delegation and digital transformation.
Social implications
The implication was from the findings pertain to global strategy formulation after organisational integration, which was not previously elucidated by the transnational management and meta-national management models. It was clarified the existence of four cases for subsidiary R&D involvement in strategy formulation from the perspective of subsidiary R&D activities, addressing the difficulty of explaining the penetration of single strategy management to subsidiaries through integration alone. We revealed that there are the entire, apparent, moderate, and quiescent integration cases of R&D strategies from the perspectives of global integration strategy and the subsidiary country’s adaptation and that considering subsidiary R&D involvement models in global strategy formulation is important for maximising the performance of R&D subsidiaries in MNCs.
Originality/value
This study provides useful insight into the importance of centralisation to enhance performance. It addresses the research gap in the global strategy formulation process by R&D subsidiaries. R&D leaders at subsidiary levels strike a balance between global considerations and the host country. This concerns the need for initiative and value proposition to their local customers, combined with the operation of a transnational model. The findings clarify how high-performing subsidiary R&D leaders can engage in parent company strategy formulation.
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The main goal of the article is to determine the mediating role of human resources management (HRM) outcomes in the relationships between shaping employee work engagement and job…
Abstract
Purpose
The main goal of the article is to determine the mediating role of human resources management (HRM) outcomes in the relationships between shaping employee work engagement and job satisfaction (SEWE&JS) and company performance results and to establish whether there are any identifiable regularities in this scope in the pre-pandemic and pandemic period in the headquarters (HQs) and foreign subsidiaries of multinational companies (MNCs).
Design/methodology/approach
The empirical research included 200 MNCs headquartered in Central Europe. The raw data in the variables were adjusted with the efficiency index (EI) to capture the actual relations between the variables under study. The partial least squares structural equation modeling (PLS-SEM) was used to verify the research hypotheses and assess the mediating effects.
Findings
The research findings show that the HRM outcomes positively mediate the relationships between SEWE&JS and the company performance results. HRM outcomes turned out to be a stronger mediator between SEWE&JS and company performance results in finance and quality in the HQs during the pandemic. By contrast, in the local subsidiaries, they were a stronger mediator of the relationships between the results in innovativeness and quality during the pandemic.
Originality/value
In addition to confirming the results of some other researchers, the research findings also provide new knowledge. They determine the mediating role of HRM outcomes in the relationship between SEWE&JS and the three categories of company performance results, namely finance, innovativeness and quality. In addition, they identify certain regularities in the four studied contexts, which is a novelty in this type of research. A novelty is also the use of employee key performance indicators (KPIs) in the data analysis as the efficiency index in analyzing the effect of the variables under study. The value of the research is also the fact that it covers HRM in MNCs established in Central Europe, which, compared to MNCs from the Western world, is not a frequent subject of research.
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