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This article takes stock of interdisciplinary research on Multinational Corporations (MNCs) by elucidating paradigmatic shifts in the world of MNCs in the new millennium and analysing more recent developments in the disciplines of International Business (IB) and Organization Theory (OT). The article also introduces the altogether 14 individual contributions of this 49th volume of the Research in the Sociology of Organizations series. It closes by looking into the questions of where interdisciplinary OT/IB research on MNCs is now and where it is likely to go in the future.

The multilingual MNC provides a promising territory for enhancing the dialogue between organization theory and International Business. We draw parallels between research on the multinational corporation and that on the multilingual corporation. Our review shows that the changing conceptualizations of the MNC toward a network model have carved space for language-sensitive research in International Business. We scrutinize this stream of research from the viewpoint of three organization theory lenses: the role of language in organizational design and architecture, in identity building and culture, and in organizational political systems, and comment on future research.

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.

The purpose of this paper was to explore the motivation and rationale behind international investment to better explain the conflicting results reported in previous research and to provide some answers to the current debate on international diversification. Monthly return data and annual financial data of 424 NYSE‐listed companies over four 5‐year periods was examined, dividing the sample companies into three groups according to their degree of international diversification. Averages for monthly returns, market‐adjusted returns, total risk, and systematic risk were analyzed. An ongoing debate among students of multinational corporations (MNCs) focuses on whether the intent of corporate international diversification has been to increase stockholders' return or to reduce risk (Siegel et al. 1992; Shalchi and Hosseini 1990; Ndubiuzu 1990; and Theerathom et al. 1992). Based upon the observation of the pattern of holdings, Buckley (1988) argues that firms do not become MNCs to reduce risk. Risk reduction behavior would lead to a strategy of seeking investments in countries with uncorrected return patterns, as with some of the underdeveloped countries. Instead there has been a concentration of foreign direct investments in advanced market economies with high return correlations among each other. Buckley (1988) concludes, therefore, that MNCs are imperfect vehicles for risk diversification. Fatemi (1984) suggests that much of the international diversification made by corporations may have a defensive purpose. Their goal may be, for example, to maintain participation in some export markets or to match the previous move of a competitor, and not necessarily to increase the firm's revenue. The motivation for foreign corporate investments has been attributed to many specific factors, related both to the firm and the country. Included among these factors are: (a) economies of scale associated with large size and the ability to produce in several countries, (b) intangible assets, such as technological expertise or entrepreneurial skills, (c) market power due to the size of markets and previous experience with the domestic market, (d) industry grouping, (e) the availability of additional natural resources, as well as less costly labor and/or capital, (e) advantageous regulatory framework for the firm offered by the host country, and (f) the economic influence of the particular time period involved on firms and countries. The purpose of this paper is to provide additional evidence on whether international diversification has either increased stockholder's return or reduced their risk and to consider the possible influence of several factors. A sample of 424 companies was drawn from the New York Stock Exchange (NYSE), and was divided into three categories, i.e., domestic, intermediate, and multinational. Two return and two risk measures were then calculated for four periods of time (1968–1972, 1973–1977, 1978–1982, and 1983–1987) to examine the relationships between the degrees of international diversification and the measures of risk and return. One of our concerns was to try to address some of the discrepancies among prior research findings.

The purpose of this paper is to explore the relationship between effective knowledge management and corporate performance, to explore the dynamic symbiosis phenomenon of effective knowledge management based on organizational ecology with multinational companies (MNCs) and non-multinational companies (non-MNCs) and to explore the symbiosis strategy of knowledge management between multinational and non-multinational companies (non-MNCs) in China.

To measure effective knowledge management, this paper first uses structural equation model to measure knowledge management, based on the evolution dynamics equation in organizational ecology to measure the effectiveness of knowledge management, and studies the symbiosis of effective knowledge management between MNCs and non-MNCs based on ecological perspective.

Effective knowledge management can promote the financial performance of enterprises, but different degrees of effectiveness have different effects. In addition, the coupling and collaboration between knowledge management and corporate performance can reflect the value of effective knowledge management. The results show that effective knowledge management plays a positive moderating effect between knowledge management and corporate performance. Finally, the effective knowledge management system of MNCs (non-MNCs) has negative effect on non-MNCs (MNCs), showing the exclusive relationship between MNCs and non-MNCs in China.

The effectiveness of knowledge management is only based on the measurement of financial performance coupling. For other types of performance, it needs to be tested. The samples may not cover symbiosis relationship of effective knowledge management in other countries.

This paper provides practical and theoretical reference for confirming the symbiotic interaction and identifying the opportunities and challenges of knowledge management among different types of corporation groups.

The paper is one of the pioneering studies to explore the pattern of symbiotic evolution of effective knowledge management between MNCs and non-MNCs. From completely new perspectives, this study advances the research of knowledge management to a new and promising area.

Since the onset of globalisation, many multinational corporations (MNCs) have been increasingly opening up subsidiaries in several host nations. While the entry of MNCs in some nations has been generally unproblematic, that has not been the case in every host nation. Fears of neocolonialism and postcolonial anxieties are very real phenomena in many parts of the world. When it comes to such resistant environments, MNCs need to be especially careful in how they conduct their public relations activities. This qualitative study of two MNC subsidiaries in India – Hindustan Lever Limited (of Unilever) and Maruti Udyog Limited (of Suzuki Motor Corporation) – explores, in context, the phenomenon of MNC public relations in this host nation that has a history of resistance to MNCs. The authors conclude that MNCs can be successful in potentially resistant host environments through culturally attuned involvement, intervention and respect for the local that is proven through socially responsible performance over time. This is an important message for MNCs starting up in new host environments. Descriptive details elucidate the specific public relations activities of the two MNCs in the Indian business and cultural environment. Overall, the findings have heuristic value for transnational public relations theory building since they suggest that an MNC’s organisational culture and approach to communication and relationship cultivation are important variables that shape how it practises public relations in host nations around the world.

This paper aims to offer a critical examination of the social impacts of large multinational corporations (MNCs) in the age of globalization.

The study adopts a multidisciplinary approach and relies on various scholarly resources in several disciplines including international business, international economics, sociology and international relations. The analysis is organized around eight major areas and constituencies of MNCs including the global scene, workers, competitors, entrepreneurs, government and tax payers, social justice, nations/states and natural environment.

Giant MNCs have benefited from favorable conditions in the past three decades and currently dominate the global scene. In general, the rising corporate profits come not to the benefit, but to the detriment of workers. Large MNCs benefit from their immense resources to develop sophisticated competitive advantages against smaller rivals. They impede small entrepreneurs from scaling up their operations and increasing their market shares. Furthermore, large MNCs often take advantage of their power to shape national and international policies in ways that enable them to enhance their profitability. Overall, large MNCs aggravate the rising economic inequality in different ways, thus contributing to social and financial instability. Furthermore, large MNCs erode state sovereignty and enormously contribute to environmental degradation.

While most international business studies focus on the concept of corporate social responsibility or sustainable development, the originality of this paper resides in adopting an alternative perspective and offering a multidisciplinary and critical examination of the social impacts of large MNCs.

Kostova, Roth and Dacin called in 2008 for the advancement of a theoretical conception of the multinational corporation (MNC) that takes into account both power relationships among actors and the structure of its internal institutional field. While micro-political scholars of MNCs have started to answer the former part of the call regarding power, the second part has not been thoroughly addressed yet. Furthermore, the agentic aspects typical of power games and the structural aspects characterizing institutional fields have not been fully combined in a multi-level perspective of MNCs so far. Leaning on Bourdieu, we suggest an answer to the pending call. We theorize the MNC as a playing field of power emerging around the issue of finding a meta-rate of conversion of the actors’ capitals constituted in national fields. We conceive such issue field in a dynamic state due to the constant entry and exit of new players (e.g. through mergers, acquisitions or divestitures). This results in the need to continuously test the validity of exchange rates. The role of the metainstitutional field level of the MNC as a global category is also discussed.

For many global firms and corporate oligopolies, transfer pricing is essential. The transfer pricing literature as it is currently written is succinctly summarized in this study. The authors offer a thorough analysis of transfer pricing research in this study. This review sheds light on the top researchers, approaches, conclusions, theoretical and empirical gaps, and upcoming issues of transfer pricing research over the previous nine years through a methodical analysis of 29 research publications from the Scopus database (2014–2022). To help graduate students pursue further degrees in this area, such as a master's, thesis or PhD, this study will highlight five research issues.

This essay looks at five significant areas of tax avoidance and transfer pricing research. Some of these issues include determining the impact of transfer pricing regulations on various types of multinational corporations, assessing the effectiveness of transfer pricing regulations in preventing tax evasion, examining various policy options and determining the impact of transfer pricing on other economic outcomes using a systematic literature review.

The findings of this review demonstrate the need for transfer pricing research to look more closely at transfer pricing as a tool for business in addition to compliance and tax management.

This analysis concludes with future directions for transfer pricing research.

The purpose of this paper is to critically examine the concept of corporate social responsibility (CSR) in Nigeria’s Delta region and draw a distinction between philanthropic CSR (positive affirmative CSR) and the more demanding duty not to harm the ecosystem (negative injunction CSR). It suggests that for CSR to contribute to sustainable development, oil multinational corporations (MNCs) need to perform the more demanding duties and not only philanthropy.

The method applied is a critical evaluation of the nature and categories of CSR. It thoroughly reviews existing literature on CSR and uses them to identify and separate for analytical purposes, the different obligations arising from the concept.

The paper highlights the inability of oil MNCs in Nigeria to differentiate between philanthropic CSR and the more demanding duty to care for the host communities and their environment. It suggests that this failure, arguably attributable to the “shareholder value” model of corporate governance, appears to lie at the heart of the unrest in the region.

By performing only the positive CSR duties, while neglecting the negative injunction obligations, oil MNCs continue to attract hostility from the host communities who feel that their survival is at stake.

The paper extends the knowledge of the CSR practices of MNCs in Nigeria, by clearly delineating the two CSR duties and by linking the failure of MNCs to perform the negative injunctions to the shareholder value model of corporate governance.