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Article
Publication date: 18 April 2022

Srinath Jagannathan and Patturaja Selvaraj

This paper aims to explore narratives of insecurity to understand how the casualisation of the employment relationship makes life more fragile and precarious. The authors…

Abstract

Purpose

This paper aims to explore narratives of insecurity to understand how the casualisation of the employment relationship makes life more fragile and precarious. The authors engage in an inquiry about how multinational enterprises (MNEs) structure precariousness for workers in emerging economies. The authors attempt to understand how workers analyse their experiences of precariousness and what form their resistance takes as a result of their analysis.

Design/methodology/approach

The authors engage with the narratives of eight Indian workers/trade union activists working in different marginal spaces of the Indian economy to uncover a commons where we are the multitude. By commons, the authors imply shared forms of property, which stand against the concept of private property that is central to the social relations of capitalism. The authors are performing the data of workers by interspersing them in an analysis of angst and hope.

Findings

Workers understand their experiences of precariousness as emerging from a complex political economy structured by MNEs, which involves multiple fronts of marginalisation. Workers realize that they need to engage in comprehensive forms of resistance to undo the regimes of precariousness. Workers create shared universes of grief to relate to each other’s experiences of precariousness. The unfreedoms experienced by workers lead to a sharing of the social relations of commons where workers can resist by expressing solidarity with each other.

Practical implications

The authors contribute to practice by arguing that workers’ collectives should not accept the naturalisation of precariousness. By staging a dialogue about the injuries of precariousness, they can craft a politics of resistance that begins the process of commoning.

Social implications

Workers’ politics of resistance can significantly democratise the global political economy in important ways by advancing the potential for commons.

Originality/value

The authors make an original contribution to the study of precariousness in the context of international business by arguing that the experience of precariousness can lead to a commons where workers resist structures of injustice.

Details

critical perspectives on international business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 22 February 2022

Ranjan DasGupta, Satish Kumar and Rajesh Pathak

Using a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic…

Abstract

Purpose

Using a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic role for their engagement with sustainable development goals (SDGs). Additionally, this study aims to investigate the country- and industry-specific moderation effects on the relationship.

Design/methodology/approach

This study employs negative binomial regression model along with the fixed effects for industry and time in the empirical estimation.

Findings

This study shows that MNEs’ internationalization is associated with their higher engagement in SDGs. This is owing to the pressures MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liability of foreignness. The country-level results of this study suggest that this positive relation is stronger in countries with weak legal environment, countries with weak investor protection and in countries with higher SDG index scores. However, the industry-level results of this study indicate that the positive relation between MNEs internationalization and their SDG engagement are weaker in industries facing more competition and industries exposed to negative externalities. The results survive to controls for factors specific to firm and industry.

Originality/value

This study is one of the early studies which empirically examine the role of MNE internationalization and SDG engagement. Also, the findings of this study improve the understanding on country-specific and industry-specific challenges in implementing SDGs.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 18 February 2022

Benjamin Robb and Snejina Michailova

Globalisation plays a major role in the existence and persistence of modern slavery, one of the most extreme examples of human rights abuses in recorded history. This…

Abstract

Purpose

Globalisation plays a major role in the existence and persistence of modern slavery, one of the most extreme examples of human rights abuses in recorded history. This paper aims to explore how multinational enterprises (MNEs), as central players in international business (IB) activities, relate to modern slavery. This paper focusses on human rights–minded MNEs and investigates their narratives and proactive approaches to tackling modern slavery.

Design/methodology/approach

This study conducted 12 semi-structured interviews with managers and consultants with substantial knowledge on the topic. This study also gained insights from a business conference on modern slavery organised by a New Zealand ministry in 2021.

Findings

This study identified four MNE narratives and three approaches to responding to modern slavery.

Practical implications

This paper discusses the challenges faced by MNEs when addressing modern slavery and outlines the relevant implications for MNE managers.

Originality/value

The scholarly conversation on modern slavery in the field of IB is in its infancy. This paper offers an account of how MNEs deal with modern slavery. In addition, while most studies take a critical angle and focus on problems, this study focusses on progressive and human rights–minded MNEs.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 17 January 2022

Tingting Jiang, Buyun Yang, Bo Yang, Bo Wu and Guoguang Wan

The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed…

Abstract

Purpose

The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs.

Design/methodology/approach

Based on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018.

Findings

The results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions.

Originality/value

This study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Book part
Publication date: 2 September 2010

J. Ramachandran and Anirvan Pant

We contend that the concept of liability of foreignness is inadequate to describe the set of disadvantages faced by emerging economy multinational enterprises (MNEs) in…

Abstract

We contend that the concept of liability of foreignness is inadequate to describe the set of disadvantages faced by emerging economy multinational enterprises (MNEs) in international markets. In order to address this theoretical gap, we develop the concept of “liabilities of origin” (LOR). We propose that the concept of LOR explains how the national origins of the MNE shape its disadvantages in international markets through three distinctive contexts of the MNE's ongoing activity: the home country context, the host country context, and the organizational context. We argue that in order to understand how emerging economy MNEs overcome their LOR, we need to engage simultaneously with the theoretical perspectives provided by the institutional entrepreneurship and organizational identity literatures. We suggest, further, that the concept of LOR may be useful to understand the character of MNE disadvantage in any international foray where the national origins of the MNE engender legitimacy-based and capability-based disadvantages for the MNE in a host country.

Details

The Past, Present and Future of International Business & Management
Type: Book
ISBN: 978-0-85724-085-9

Book part
Publication date: 23 November 2017

Palitha Konara and Vikrant Shirodkar

The possibility of institutional distance exerting an asymmetric effect on the entry strategies of multinational enterprises (MNEs) has attracted recent scholarly…

Abstract

The possibility of institutional distance exerting an asymmetric effect on the entry strategies of multinational enterprises (MNEs) has attracted recent scholarly attention. In this context, we re-examine the relationship described by Hernandez and Nieto (2015) on the effect of the direction of regulatory institutional distance on MNEs’ choice of entry mode in host countries. We extend this research by (1) focussing on the context of emerging markets and (2) accounting for a greater variety of MNEs as well as institutions by including both large and small firms, and a larger set of home and host countries. In contrast to Hernandez and Nieto’s study, we find that, in the context of emerging markets, institutionally distant MNEs are more likely to choose the full-ownership mode when they originate from an institutionally stronger country in comparison to the host (emerging) country, and they are more likely to choose the joint-ownership mode when they originate from an institutionally weaker country. We discuss our findings with respect to Hernandez and Nieto’s study, which explores this relationship more generally (i.e. beyond emerging-market contexts), however in the context of small and medium enterprises.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

Abstract

Details

Multinational Enterprises and Terrorism
Type: Book
ISBN: 978-1-83867-585-1

Book part
Publication date: 4 January 2014

Greetje Schouten, Sietze Vellema and Jeroen van Wijk

The sustainability performance of multinational enterprises (MNEs) is often judged from their participation in distinct sustainability standards initiatives. But MNEs

Abstract

Purpose

The sustainability performance of multinational enterprises (MNEs) is often judged from their participation in distinct sustainability standards initiatives. But MNEs interact with a variety of sustainability standards in their value chains. This chapter proposes a partnering-intensity continuum to categorize the MNE–standards interactions to explore the benefits of a more firm-based approach for the assessment of MNEs’ contributions to sustainability.

Methodology/approach

The chapter describes standardization in coffee and biofuels industries and presents the case of a single firm to compose a continuum that reflects how MNEs move between standards attached to operations of single firms, bilateral arrangements with certification schemes, and multistakeholder partnerships. It elaborates this observed continuum by linking international business (IB) literature with the literature on global value chains (GVCs) and partnerships.

Findings

Choices about how to partner in and how to handle control over the implementation of standards shape the contributions MNEs make to sustainable development. Specifying how MNEs interact with different standards, with varying degrees of partnering and combined logics, is proposed as a better way to assess how MNEs contribute to sustainable development compared to evaluating standards per se.

Originality/value

This chapter draws attention to the phenomenon that international “lead firms” engage with a variety of standards. The chapter proposes that looking at partnering intensity and the subsequent level of influence over the implementation of standards enables assessing how and to what extent lead firms contribute to addressing sustainability problems.

Details

International Business and Sustainable Development
Type: Book
ISBN: 978-1-78190-990-4

Keywords

Book part
Publication date: 20 June 2008

Yair Aharoni and Ravi Ramamurti

This chapter examines the internationalization of the national origin of multinational enterprise (MNEs), starting with European firms at the turn of the 20th century, US…

Abstract

This chapter examines the internationalization of the national origin of multinational enterprise (MNEs), starting with European firms at the turn of the 20th century, US firms after World War II, Japanese firms after the 1980s, and, most recently, emerging-market firms, including those from low-income countries such as China and India. The acceleration of this trend in recent decades has been driven by changes in government policy, technology, capital markets and international social networks. As a result, MNEs are being spawned in more countries, in more industries and at earlier stages of a firm's evolution than before. These changes have also transformed the established Western MNE from raw-material-seeker and tariff-jumper to efficiency- and innovation-seeker. Therefore, going forward, the MNE must be viewed as a heterogeneous entity, distinguished by national origin, size and raison d’ệtre – from resource-seeking firms to knowledge-generating and processing firms. The chapter concludes with important questions raised by these developments for future IB research.

Details

International Business Scholarship: AIB Fellows on the First 50 Years and Beyond
Type: Book
ISBN: 978-0-7623-1470-6

Book part
Publication date: 4 January 2014

Jenny Hillemann and Alain Verbeke

The purpose of this chapter is to demonstrate that sound, mainstream international business (IB) thinking should be applied when assessing the economic opportunities…

Abstract

Purpose

The purpose of this chapter is to demonstrate that sound, mainstream international business (IB) thinking should be applied when assessing the economic opportunities available to multinational enterprises (MNEs) in Bottom of the Pyramid (BOP) markets.

Design/methodology/approach

We describe and evaluate critically the key points made in the BOP literature about the alleged attractiveness of BOP markets, and the alleged strengths of MNEs to penetrate these markets successfully. We revisit the managerial implications from the BOP literature using an internalization theory lens.

Findings

We demonstrate the weak conceptual grounding of conventional BOP thinking, which suggests that MNEs from developed economies should be very entrepreneurial and should systematically serve BOP markets with new products and business models. We also show the fallacy of the idea that a “success template” in one BOP market would be easily replicable in other BOP markets and would allow the MNE to earn economies of scale and scope.

Research implications

IB researchers should start conducting serious studies on the attractiveness of BOP markets for MNEs. They should also analyze seriously the micro-foundations of successful knowledge recombination in BOP markets and the limits to the transferability of success templates. Mainstream IB theory, namely internalization theory, is particularly well equipped to analyze the costs and benefits of entering BOP markets, building upon a comparative institutional logic.

Practical implications

Senior MNE managers should not allow themselves to be blinded by BOP gurus, advocating the alleged great benefits of penetrating BOP markets. BOP markets may be especially challenging international expansion targets for MNEs because of large institutional voids, high uncertainty, high “distance” vis-à-vis the home country market and the difficulties of transferring relevant knowledge from one BOP market to another.

Originality/value

This chapter is the first to show that mainstream IB research can be usefully applied to analyze the “real” attractiveness of BOP markets for MNEs. Comparative institutional analysis is proven to provide substantially more insight to make BOP market penetration work than past guru-talk on BOP markets.

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