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Article
Publication date: 9 April 2019

Parth Patel, Brendan Boyle, Mark Bray, Paresha Sinha and Ramudu Bhanugopan

The purpose of this paper is to examine the control mechanisms used by multinational corporations (MNCs) from emerging economies to manage their subsidiaries in developed…

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Abstract

Purpose

The purpose of this paper is to examine the control mechanisms used by multinational corporations (MNCs) from emerging economies to manage their subsidiaries in developed countries and their implications for human resource management practices.

Design/methodology/approach

The paper draws on data collected through in-depth case studies and interviews with senior subsidiary managers of 12 major Indian information technology (IT) MNCs operating in Australia.

Findings

Indian IT MNCs rely heavily on the use of people-centric controls exerted through global staffing practices (via the transfer of parent-country nationals), which, in turn, influence their subsidiary’s discretion over their HR practices. The use of people-centric controls allows Indian IT multinationals to replicate parent-country HRM practices in their Australian subsidiaries in an ethnocentric manner and significantly leverage the people-based competitive advantages from India through short- and long-term expatriate assignments.

Research limitations/implications

The study investigates control and HRM practices from a single country and a single industry perspective. It provides an insight into the normative means of control in foreign subsidiaries of MNCs and enhances our understanding by explaining the integrated relationship that control mechanisms (and their people-centric components) have with HRM practices including the global staffing approaches and expatriate management practices of emerging MNCs.

Practical implications

Indian MNCs are using their business model to leverage the Australian immigration and skilled visa programme to maintain cost advantages. However, the immigration legislation in developed countries needs to be capable of allowing emerging multinational corporations (EMNCs) to maintain such advantages as developed countries seek to attract foreign direct investment from emerging economies.

Originality/value

The results indicate that the control practices of EMNCs are similar to the controls exerted by MNCs from developed countries. They also show that EMNCs do not adopt a portfolio approach to global staffing, and that the people-centric components of their control have a clear impact on their subsidiaries’ HRM practices.

Details

Personnel Review, vol. 48 no. 4
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 1 August 2019

Paresha N. Sinha and Dharma Raju Bathini

The purpose of this study is to apply the dominance effect theory and postcolonial notions of “otherness” to critically study the enactment of mimicry at IndianBread, an…

Abstract

Purpose

The purpose of this study is to apply the dominance effect theory and postcolonial notions of “otherness” to critically study the enactment of mimicry at IndianBread, an Indian fast-food chain that has adopted work practices typically found in US fast-food multinational enterprises (MNEs).

Design/methodology/approach

The authors used an interpretive sensemaking case study approach and collected qualitative data drawing on observations, notes from the company policy manual and in-depth interviews with eight staff at an IndianBread outlet. Data were also collected during informal interactions with staff at three other IndianBread outlets. The analysis focused on the enactment of mimicry and studied the postcolonial dynamics between managers and migrant workers to explain their resistance to the adoption of US work practices.

Findings

Work practices of US fast-food MNEs such as the standardization of workers’ appearance and basic “Englishization” such as greeting customers in English had been adopted at the IndianBread outlet. However, migrant workers resisted enforcement by contesting the superiority and relevance of these US work practices. The workers’ resistance was accommodated by local managers to pacify and retain them.

Research limitations/implications

The analysis contributes to a deeper understanding of the dynamics of resistance to the dominant influence of US work practices in emerging market firms. It expands current notions of “otherness” by presenting the perspective of “local” managers and migrant workers. The authors show how worker resistance embedded in their “identity work” involves contesting notions of “inferiority” of local work practices and selves. In the case of managers, accommodating resistance maintains their “legitimacy of dominance”. To that end, the study explains how the need to mimic US work practices is enforced, contested and ultimately diluted in competitive local firms in rising India.

Practical implications

The organizationally grounded data show how managerial accommodation of workers’ resistance to US practices creates a more flexible working environment that dilutes migrant workers’ sensitivity to their exploitation at the fast-food outlet.

Social implications

The findings identify the link between mimicry and resistance by the “other,” the ambivalence of the colonizing agent and the ongoing material exploitation within emerging economies.

Originality/value

To that end, the study explains how the need to mimic the US work practices is enforced, contested and ultimately diluted in the context of the competitive local firms in India.

Details

critical perspectives on international business, vol. 15 no. 4
Type: Research Article
ISSN: 1742-2043

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Article
Publication date: 21 June 2013

Hayden Skiffington, Michèle E.M. Akoorie, Paresha Sinha and Glyndwr Jones

The study aims to investigate the production offshore outsourcing practices of SMEs in the New Zealand printing, publishing and packaging industries. It identifies the…

Abstract

Purpose

The study aims to investigate the production offshore outsourcing practices of SMEs in the New Zealand printing, publishing and packaging industries. It identifies the techniques SMEs use to organise and manage their offshore outsourcing activities. The authors then develop a managerial framework to assist SMEs in their future offshore outsourcing ambitions.

Design/methodology/approach

The study takes a qualitative approach; obtaining data from a sample of 22 New Zealand SMEs in the printing, publishing and packaging industries that are actively offshore outsourcing production tasks. Data was gathered in the form of semi‐structured interviews with SME managers who have carried out offshore outsourcing.

Findings

To mitigate offshore outsourcing costs, SMEs use the internet to locate suppliers and use short‐term reliable contracts that are managed remotely or by intermediaries. Customer involvement was highly important during the entire offshore outsourcing process. Most SMEs developed long‐term business relationships with reliable suppliers. These findings are integrated into the SME framework, which identifies ways SMEs can overcome resource constraints and minimise risks when offshore outsourcing.

Research limitations/implications

This study is confined to a single country and reports on findings for several related industries, i.e. the printing, publishing and packaging industries in New Zealand. This limits its applicability to research in other settings and other industries. However, it identifies an area of research (offshore outsourcing activities in SMEs) that could be extended to other industries and countries by future research.

Practical implications

The SME framework presents an easily understood approach that has been verified by SME managers who have successfully offshore outsourced production tasks. The research proves that SMEs can offshore outsource within the constraints of limited physical and managerial resources.

Social implications

The study showed that the decision‐making process to outsource is supported by the transaction costs approach. Firms have to balance out total cost considerations in making their decision to offshore (including contingency costs) to ensure that the savings from outsourcing are greater than the transaction costs. The resource‐based view of the firm is also used to suggest that offshore outsourcing means that firms may be able to improve their own competences by providing (through their suppliers) access to more sophisticated and higher‐quality processes.

Originality/value

The research contributes to the growing area of SME offshore outsourcing research, providing detailed empirical evidence of SME offshore outsourcing activities occurring in New Zealand.

Details

Strategic Outsourcing: An International Journal, vol. 6 no. 2
Type: Research Article
ISSN: 1753-8297

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Article
Publication date: 22 February 2011

Paresha Sinha, Michèle E.M. Akoorie, Qiang Ding and Qian Wu

The purpose of this paper is to focus on the motivations for offshore outsourcing encountered by manufacturing small and medium‐sized enterprises (SMEs) and their…

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Abstract

Purpose

The purpose of this paper is to focus on the motivations for offshore outsourcing encountered by manufacturing small and medium‐sized enterprises (SMEs) and their suppliers in China. The paper explores the motivations and challenges encountered by SMEs choosing to outsource their manufacturing activities and why their suppliers engage with them.

Design/methodology/approach

A qualitative case study method was utilized. The authors obtained perspectives of SME managers as well as the suppliers for each of the cases, conducting in‐depth interviews in order to obtain comprehensive information about their outsourcing activities. Then, cross‐case analysis was carried out using content analysis techniques to identify key themes for the motivations to undertake offshore outsourcing.

Findings

The results showed that the first rationale for offshore outsourcing relates to increasing efficiency and labor cost reduction while holding quality constant. The second rationale is to maintain flexibility in resource allocation providing both manufacturing SMEs and their suppliers with an opportunity to enter new markets. For both manufacturing firms and their suppliers building a relationship through networks and alliances was the key to the success (learning orientation) of the partnership.

Practical implications

The managerial implications of the findings are that first, from the perspective of client firms, the most important factor for success in manufacturing offshore outsourcing was maintaining good relationships with suppliers. The benefits of having close relationships with suppliers for outsourcing firms helped them to secure the quality of their products. The second managerial implication is from the perspective of the supplier firms. Supplier firms which were also aware of the transaction cost implications of their delivery while improving their own international image by supplying international clients. The evidence supplied suggests that supplier firms can benefit from using networks to assist them to gain international exposure.

Originality/value

While there are numerous studies on offshore outsourcing by multinational enterprises (MNEs) and large enterprises, there are relatively fewer studies on manufacturing offshore outsourcing by SMEs. Using the three theoretical lenses of the transaction cost approach, the core competences and the alliances, networks and internationalization approach, the paper offers insights on the reasons for and outcomes of a group of SMEs decision to undertake offshoring‐manufacturing activities in China. Also, the paper examines the manufacturing offshore outsourcing issues from the perspective of the suppliers to these SMEs.

Details

Strategic Outsourcing: An International Journal, vol. 4 no. 1
Type: Research Article
ISSN: 1753-8297

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Article
Publication date: 12 January 2015

Paresha Sinha, Mingyang (Ana) Wang, Joanna Scott-Kennel and Jenny Gibb

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open…

Abstract

Purpose

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions.

Design/methodology/approach

Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry.

Findings

In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive.

Originality/value

This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

Details

European Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 18 January 2016

Kathryn Pavlovich, Paresha N Sinha and Mark Rodrigues

An international joint venture (IJV) helps multinational enterprises (MNEs) overcome the “liability of foreignness.” However, in the presence of institutional voids, MNE’s…

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1983

Abstract

Purpose

An international joint venture (IJV) helps multinational enterprises (MNEs) overcome the “liability of foreignness.” However, in the presence of institutional voids, MNE’s overreliance on the local partner can result in the MNE unwittingly becoming involved in a corporate scandal. The purpose of this paper is to discuss the causes, impacts and outcomes on the MNE’s legitimacy following a corporate scandal.

Design/methodology/approach

Using secondary data, this paper presents a qualitative case study of the Fonterra-Sanlu milk-powder scandal in China.

Findings

The paper identifies the institutional voids that contributed to the scandal. It also examines the effects of the scandal on the MNE’s legitimacies and evaluates the appropriateness of its actions in China during the formation, erosion and repair stages of its legitimacy.

Research limitations/implications

It contributes to legitimacy literature by discussing the importance of MNE’s active commitment when entering the emerging market. It argues that the building of pragmatic legitimacy is not sufficient, and explains why attendance to moral obligations is part of building moral and cognitive legitimacy.

Originality/value

This unique case study of a corporate scandal offers deep insights into how, what and why questions regarding how the three forms of legitimacy are necessary for improving IJV performance by MNEs operating in emerging economies. It particularly highlights the importance of moral legitimacy as a mechanism for overcoming institutional voids.

Details

International Journal of Emerging Markets, vol. 11 no. 1
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 4 November 2020

Mahnoor Hai, Shahid Latif, Ahmad Raza Bilal and Bilal Ahmad

The purpose of this study is to advance the prevalent leadership–creativity perspective by examining respectful engagement as a missing link between transformational…

Abstract

Purpose

The purpose of this study is to advance the prevalent leadership–creativity perspective by examining respectful engagement as a missing link between transformational leadership and employees creativity in the tourism and hospitality industry of Pakistan.

Design/methodology/approach

Data were collected from 288 supervisor–subordinate dyads of hotel and tourism industry in Pakistan. Partial least square structural equation modeling (PLS-SEM) technique was used to validate the measurement model and to test the proposed hypotheses using SmartPLS 3.0.

Findings

The results suggest that transformational leadership and respectful engagement are significantly related and that respectful engagement fosters employee creativity. The study further confirmed that respectful engagement mediates the relationship between transformational leadership and employee creativity.

Practical implications

Besides theoretical contribution, the study has several managerial implications for the tourism and hospitality industry. Globally, in the tourism and hospitality industry, the service selling proposition is largely based on creativity. Hence, the study suggests the managers of tourism and hospitality industry should adopt a transformational leadership style to achieve a sustainable competitive advantage of creativity. The study further recommends the managers capitalize on their transformational leadership style to observe respectful engagement in the workplace, which in turn can encourage employees to behave creatively.

Originality/value

Theoretically, this paper contributes to the existing body of knowledge in a couple of ways. Firstly, while several empirical studies have discussed the impact of transformational leadership on employee creativity, and various mediating models have also been tested in this regard, little effort has been made to study the links between transformational leadership and employee creativity despite existing awareness about the importance of respectful engagement for employee creativity. Thus, the current study examines employee creativity with the lens of transformational leadership and respectful engagement. Secondly, the study integrates the theories of transformational leadership, employee engagement and employee creativity.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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