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1 – 10 of 132Evodio Kaltenecker and Miguel A. Montoya
This paper aims to study the internationalization path of emerging market multinational enterprises (EMNEs) in their international expansion through the global cities (GCs…
Abstract
Purpose
This paper aims to study the internationalization path of emerging market multinational enterprises (EMNEs) in their international expansion through the global cities (GCs) phenomenon.
Design/methodology/approach
The authors used a quantitative approach to identify the most used ownership and entry modes, the preferred economic sectors and the level of interconnectedness of GCs.
Findings
The manuscript identified the predominance of the tertiary sector in the selection of GCs as foreign direct investment destinations. Second, the acquisition is the preferred entry mode regardless of the connectivity of the GC and the country of origin of the EMNE. The third is the use of wholly-owned subsidiaries as the preferred ownership mode. Finally, market-seeking is the main driver for the internationalization of Latin American EMNE. Consequentially, some GCs-specific advantages remain untapped by Latin American EMNE.
Research limitations/implications
This manuscript considered each investment into a global city as a single step, although some acquisitions occurred incrementally through several small investments.
Practical implications
The authors developed a road map for the internationalization of Latin American EMNEs through GCs, acquisitions and wholly-owned subsidiaries. Finally, service-oriented EMNEs, such as IT and financial services, target locations with high interconnectedness to maximize the benefits of GCs-specific advantages.
Originality/value
The authors pointed out that market-seeking, not resource-seeking or efficiency-seeking is the primary driver of the internationalization of EMNE into global cities.
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Luíza Neves Marques da Fonseca, Angela da Rocha and Jorge Brantes Ferreira
This paper aims to investigate the divestment behavior of emerging market multinationals from Latin America – multilatinas – by examining how their foreign market entry decision…
Abstract
Purpose
This paper aims to investigate the divestment behavior of emerging market multinationals from Latin America – multilatinas – by examining how their foreign market entry decision impacts the likelihood of subsidiary divestment.
Design/methodology/approach
The hypotheses are tested using Cox’s proportional hazard rate model in a longitudinal database of Brazilian multinational companies established in 43 countries.
Findings
Results indicate that these subsidiaries can thrive in environments that bear similarities to their home country, being less likely to divest in institutionally weak countries. Contrary to developed country multinationals, these firms benefit from foreign entry decisions that entail handling partnerships abroad; thus, wholly-owned greenfield (WOGF) investments have a higher likelihood of being divested.
Originality/value
To the best of the authors’ knowledge, this paper is the first to analyze foreign divestment from multilatinas, accounting for how entry mode strategy and host country institutions may impact these firms’ de-internationalization.
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Muhammad Latif Khan, Rohani Salleh, Amjad Shamim and Mohamad Abdullah Hemdi
This paper aims to investigate the role-play of Protean Career Attitude (PCA) and Career Success (CS) in Affective Organizational Commitment (AOC).
Abstract
Purpose
This paper aims to investigate the role-play of Protean Career Attitude (PCA) and Career Success (CS) in Affective Organizational Commitment (AOC).
Design/methodology/approach
A cross-sectional study on 376 employees from 55 hotels in Malaysia were conducted. The co-variance-based structural equation modeling was employed to analyze the data to test the direct and indirect relationships of PCA and CS with AOC.
Findings
The findings reveal that self-directed career attitude (SDCA) has a positive direct influence on AOC as well as indirect influence through the mediation of OCS and SCS. However, the value-driven career attitude (VDCA) neither influences AOC nor the OCS.
Originality/value
This is a first paper to body of knowledge in Asian context which identify mediating role of career success (SCA and OCS) to PCA and AOC. The findings of this research are the workplace learning in hospitality management. The authors argue that hotels should not assume spontaneously PCA with diminishing AOC, but rather hotels' attention is required to identify the most important preferences of these butterfly career attitudes such as OCS and SCS. Most importantly the research negates many negative labels of PCA and adds new perception to the contemporary career literature. Higher education institutions, government, and primary, secondary, and post-secondary education departments can play a significant role in developing PCA dispositions like SDCA and VDCA toward career success. Therefore, further study should examine PCA and their relevance to career outcome like job searching and employability of students in Malaysia. The paper is the first, to one's knowledge, to assess organizational commitment with specific measures of PCA. While the results are simple, they refute many stereotypes of the new career and, in that sense, add an important perspective to the career literature.
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Cesario Armando Flores Villanueva, María del Carmen Gaytán Ramírez and Aleida Núñez García
This article examines the influence of market opportunity, risk, and distance on the choice of destination country for Mexican franchises.
Abstract
Purpose
This article examines the influence of market opportunity, risk, and distance on the choice of destination country for Mexican franchises.
Design/methodology/approach
The research hypotheses are developed under the theoretical approaches of institutional theory, agency theory, and transaction costs theory and were contrasted on the data obtained from 52 Mexican international franchisors operating in 37 countries as of 2016. This study uses linear regression with ordinary minimums using the STATA 13.1 software.
Findings
The results reveal that a larger market size, a greater level of economic freedom, and a smaller geographic distance are determining factors in the choice of destination country. No statistical significance was found in the variables GDP per capita, level of democracy and cultural distance.
Originality/value
This research contributes to the theoretical and practical field. On the theoretical side, this study integrates institutional theory, agency theory, and transaction cost theory to evaluate the factors of the destination country that influence the internationalization process of the franchise. Another contribution of this study is to apply theories and models of developed economies to the process of internationalization of franchises in an emerging economy. Additionally, this study is based on a model that considers the distance, opportunities and risks that are considered by Mexican franchisors in the selection of the international markets in which they maintain operations. This study contains important practical implications that can serve as relevant information for decision-making in the franchise sector and its internationalization. This data is valuable for new models of Mexican franchises that decide to start their internationalization process.
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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.
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Josephine Igoe, Alejandro (Alec) Delaney and Deborah Mireles
Mexico has the fifth-highest level of overall beer consumption in the world, the United States the second. Mexico accounts for most US beer imports and US sales dominate Mexican…
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DOI: 10.1108/OXAN-DB282583
ISSN: 2633-304X
Keywords
Geographic
Topical
Antonio Huerta-Estévez and José Satsumi López-Morales
Corporate social responsibility (CSR) in Mexican companies is an incipient concept that, in recent years, has had greater participation in the planning of companies'…
Abstract
Corporate social responsibility (CSR) in Mexican companies is an incipient concept that, in recent years, has had greater participation in the planning of companies' organisational strategies. Similarly, Mexico, as an emerging economy, has managed to remain one of the main economies in Latin America and, together with companies and organised society, has developed public policies that allow compliance with the commitment of the 2030 Agenda and the achievement of its Sustainable Development Goals (SDGs). The objective of this work is to analyse the presence of CSR in Mexican companies and its relationship with the SDGs related to economic development, for which a content analysis of the websites of the hundred most important companies in Mexico, according to the 2019 ranking of Expansión magazine, was performed. Finally, we establish that more than half of Mexican companies do not consider aspects related to CSR in their organisational development, contributing to the increase in the percentage of the population lagging behind in education, health and quality food and resulting in an increase in the levels of poverty and extreme poverty among the population of Mexico.
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Mariana Guadalupe Vázquez-Pacho and Marielle A. Payaud
This article examines the strategic actions of multinational corporations (MNCs) in creating social value at the base of the pyramid (BoP), providing insights into novel business…
Abstract
Purpose
This article examines the strategic actions of multinational corporations (MNCs) in creating social value at the base of the pyramid (BoP), providing insights into novel business models (BMs) and tactics employed for poverty alleviation.
Design/methodology/approach
This conceptual article links three relevant pieces of literature – creating shared value (CSV), the three-value creation logic and the three core values of social development – to analyze the current research and real-world examples of MNCs implementing the BoP BMs.
Findings
The article identifies four strategies and 11 tactics used by MNCs to adapt BMs elements (value proposition, value constellation and value capture) and generate social value at the different levels (coverture of basic needs, self-esteem and freedom from servitude) by following the distinct value creation logics (chain, shop and network).
Originality/value
This article provides a conceptual framework that links relevant literature and sheds light on the strategic actions that MNCs apply in their BMs to tackle the multidimensionality of poverty in the BoP markets.
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