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Case study
Publication date: 15 November 2023

Arvind Sahay and Varuna M. Joshi

The pandemic induced lockdown lead to supply and manufacturing disruptions that were swiftly dealt with by the Indian Pharma Industry through successful industry-government…

Abstract

The pandemic induced lockdown lead to supply and manufacturing disruptions that were swiftly dealt with by the Indian Pharma Industry through successful industry-government collaboration. By May 2020 production was back to normal and exports were higher than the same period in May 2019. The case deals with the processes that enabled this to happen, the policy responses and the changes that happened in the period from March 2020 to August 2020.

Details

Indian Institute of Management Ahmedabad, vol. no.
Type: Case Study
ISSN: 2633-3260
Published by: Indian Institute of Management Ahmedabad

Keywords

Article
Publication date: 18 April 2023

Rehan Ahmad, Khurram Shahzad, Muhammad Ishtiaq Ishaq and Junaid Aftab

The supply chain agility (SCA) is becoming a source of competitive differentiation but debate on its antecedents which can result in optimal firm performance is still…

Abstract

Purpose

The supply chain agility (SCA) is becoming a source of competitive differentiation but debate on its antecedents which can result in optimal firm performance is still non-pervasive in the literature. Taking this gap into consideration, the current research aimed at investigating various enablers of supply chain agility of Pakistani pharmaceutical industry.

Design/methodology/approach

The data were collected from 204 top executives working in different supply chain functions including planning, supplying, operations and purchasing in national and multinational pharmaceutical companies in Pakistan.

Findings

Through serial-mediation model, results revealed the strength of various SCA enablers, along with the mediating roles of delivery dependability.

Originality/value

This study adds in the literature on how various supply chain enablers and competencies help the organizations to achieve supply chain agility and performance, especially in a developing country.

Details

Business Process Management Journal, vol. 29 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 8 June 2023

Maria Holgado and Alexander Niess

Are major and frequent disruptions transforming global supply chains? This study aims to investigate how multinational companies (MNCs) are responding to the phenomenon of…

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Abstract

Purpose

Are major and frequent disruptions transforming global supply chains? This study aims to investigate how multinational companies (MNCs) are responding to the phenomenon of accumulated major disruptions in recent years and plausible new paradigm of unstable conditions and environmental uncertainty from a supply chain resilience (SCRES) perspective.

Design/methodology/approach

Following an inductive interpretivist approach based on interpretive phenomenology, this study gathers insights from ten MNCs supply chain managers and international consultants who participated as key informants via semi-structured interviews, sharing their experience of the phenomenon. Additionally, secondary sources such as press releases, media articles and industry reports were used for data collection.

Findings

Findings include five categories of recovery actions, i.e. levelling, rationing, buffering, bridging and boundary redefining, key strategic changes in competitive priorities, internal organisation and coordination structures, and a hierarchy between SCRES characteristics, integrated in an empirically derived conceptual framework connecting these constructs. This contributes to middle-range theories within SCRES body of knowledge. The authors also identify a set of areas for future SCRES research.

Practical implications

Findings can support MNCs’ supply chain professionals in designing and managing resilient global supply chains, based on learnings from the recent highly disruptive environment, particularly, regarding recovery actions and resilience-building strategic changes contributing to agility and robustness in global supply chains.

Originality/value

Non-positivist interpretive and inductive works are scarce in SCRES research. By adopting this novel approach for this field, the authors broadened the categorisation of responses used in previous works and identified prominent strategic changes and SCRES characteristics and relations among constructs, thus bringing conceptual clarity to SCRES research within the context of the study.

Details

Supply Chain Management: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 4 April 2023

Mohammad Zeqi Yasin and Miguel Angel Esquivias

This study aims to identify extensive and intensive margins in exports and imports and examine whether incoming foreign direct investments (FDI) benefit local firms in Indonesia…

Abstract

Purpose

This study aims to identify extensive and intensive margins in exports and imports and examine whether incoming foreign direct investments (FDI) benefit local firms in Indonesia through the export and import channels.

Design/methodology/approach

Using Heckman’s two-step selection model to consider the potential of bias of self-selection in export–import participation, this study uses the firm-level data from 2008 to 2015 collected from Statistik Industri and proximate both export and import spillovers.

Findings

The authors found that internal factors are critical for a firm to be an exporter, signaling self-selection in exports and imports. Spillover effects from FDI (spatial properties) support export but lower import propensity and intensity.

Research limitations/implications

This study implies that improving human capital (absorptive capacity) is needed to accelerate export intensity and policies supporting FDI inflows in complementary sectors (noncompeting industries) can increase export propensity and intensity and reduce imports.

Originality/value

This study contributes to the literature in several ways. First, the proposed export spillovers model that accounts for impacts through a demonstration channel is applied to the import channel. Moreover, this study extends the model developed by Franco and Sasidharan (2010) and Yasin et al. (2022) by incorporating spatial spillover effects at the provincial level. Subsequently, the authors test whether a firm’s technological intensity determines export–import propensity and intensity. This can indicate whether specific sectors are more likely to participate in international activities based on their use of technology.

Article
Publication date: 24 August 2021

Muhammad Shujaat Mubarik, Miao Miao, Muhammad Faraz Mubarak, Syed Imran Zaman, Syed Hasnain Alam Kazmi and Navaz Naghavi

The primary objective of this study is to investigate the impact of a host country's corruption on the autonomy of a foreign subsidiary from a country with lower tolerance for…

Abstract

Purpose

The primary objective of this study is to investigate the impact of a host country's corruption on the autonomy of a foreign subsidiary from a country with lower tolerance for corruption. In doing so, the study examines the moderating role of subsidiary-headquarters communication and multinational corporation's (MNC's) prior international experience in countries with a higher tolerance for corruption.

Design/methodology/approach

The data were collected from 182 foreign subsidiaries of 57 Malaysian MNCs operating in 16 host countries. The study employed ordinary least square (OLS) using Stata16.1 to analyze the modeled relationships.

Findings

The findings of this study reveal a significant positive association between the extent of corruption in the host country and the subsidiary's autonomy. The findings illustrate that an MNC's prior experience in the country with an increased tolerance for corruption does not moderate the association between corruption and subsidiary autonomy. However, the findings also confirm that the extent of headquarters-subsidiary communication negatively moderates the association between corruption and subsidiary autonomy.

Originality/value

The study uses unique data collected from Malaysian MNCs. Furthermore, the study contributes to the literature by bringing forth subsidiary autonomy as a counter strategy to potential risks that can arise due to weak institutions and widespread corruption in a host country.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 22 January 2024

Igor Gurkov and Michael J. Morley

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication…

Abstract

Purpose

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication, recently identified by the United Nations Conference on Trade and Development, on the evolution of the corporate parenting styles (CPSs) of multinational corporations (MNCs).

Design/methodology/approach

This viewpoint presents a novel view of CPSs as a set of relationships between the corporate centers of MNCs and their subsidiaries, including domestic ones, identifies the most likely connections between anticipated trajectories of development in global industries and the evolution of CPSs of MNCs and outlines directions for further research.

Findings

The anticipated trajectories of the development of global industries may result in changes in prevailing CPSs and lead to the proliferation of previously less common parenting styles. Although many of the anticipated changes in CPSs may be pursued by corporate headquarters (CHQs), a combination of powerful subsidiaries putting bottom-up pressure on CHQs and powerful owners capable of imposing requirements on top management teams and generating top-down pressure may affect the CPSs used by corporations.

Originality/value

The authors connect possible trajectories of development for global industries with the evolution of CPSs of MNCs.

Article
Publication date: 5 April 2024

Chulhyung Park and Kyuho Jin

The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs)…

Abstract

Purpose

The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries.

Design/methodology/approach

We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016.

Findings

Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries.

Originality/value

This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Open Access
Article
Publication date: 20 December 2023

Martina Fuchs and Johannes Westermeyer

The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for…

Abstract

Purpose

The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for implementing training activities. These managers are situated in relationships to headquarters and the local environment. Related to this is the question whether MNCs contribute to the local skill base by implementing training activities or whether they exploit the existing skill formation system.

Design/methodology/approach

This study focusses on German subsidiaries of MNCs with headquarters in the USA and the UK, France, China and Japan. The study is based on 107 expert interviews with subsidiary managers and representatives of local stakeholder organisations, such as educational organisations, chambers, economic promotion agencies and governmental bodies in Germany.

Findings

The study reveals that headquarters introduce general schemes for training. In addition to these MNC-internal trainings, local managers use their information advantage over headquarters to implement dual training activities.

Research limitations/implications

The training activities of subsidiaries are dependent on the institutional settings of the host country.

Practical implications

Albeit dual training activities are laborious and tie the local managers down for the medium and long term, the future need of the subsidiary for adequately skilled workforce prompts local managers’ engagement in implementing dual training activities.

Social implications

Subsidiaries contribute to the local skill base and do not act in a free-rider position, at least in the German variety of capitalism.

Originality/value

The study deepens insights on distanced relations within and how subsidiaries generate scope for action by using this kind of relationships.

Details

Critical Perspectives on International Business, vol. 20 no. 1
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 22 June 2022

Taposh Roy

Although employees are considered key stakeholders, they receive limited attention in the corporate social responsibility (CSR) literature compared to other stakeholders such as…

Abstract

Purpose

Although employees are considered key stakeholders, they receive limited attention in the corporate social responsibility (CSR) literature compared to other stakeholders such as customers. This study aims to address this gap, investigating how different factors, including CSR communication, may affect employee perceptions, and to what extent they can influence or be influenced by CSR activity.

Design/methodology/approach

Semi-structured interviews were used to collect data from three multinationals (MNCs) operating in Bangladesh. Mid- and entry-level employees from different departments, namely, marketing, logistics, human resources, IT and finance, were approached for data collection. It is important to note that all the study participants were Bangladeshi.

Findings

This study demonstrates how CSR perceptions, shaped by the level of employee awareness, personal beliefs about CSR and perceived motivation for adopting CSR, strengthen psychological ties between employees and their organisation. One-way CSR communication adopted by these MNCs disseminates positive information about an organisation’s contribution to society and creates an aspirational and ideational image, which enhances identification, evokes positive in-group biases and encourages employees to defend their organisation against criticism. This study further demonstrates that employee CSR engagement can galvanise their experience of organisational identity, enhance their pride and reinforce their organisational identification.

Originality/value

Drawing on social identity theory and the CSR communication model proposed by Morsing and Schultz (2006), this study aims to understand employees’ CSR perceptions and the possible impact of this on their behaviour. Previous studies largely focus on customers’ perceptions of these activities, which means the link between CSR perception and employee behaviour remains unclear. The current study suggests that employees working in Bangladesh will not withdraw support from their organisations if CSR is used to build reputation or public image. The findings extend the literature by arguing that some employees in developing countries not only seek to improve their status by working in a reputed organisation but also tend to engage with CSR activities undertaken by their organisation.

Details

Society and Business Review, vol. 19 no. 1
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 15 January 2024

Rolando Gonzales Martinez

The purpose of this study is to propose a methodological approach for modeling catastrophic consequences caused by black swan events, based on complexity science, and framed on…

103

Abstract

Purpose

The purpose of this study is to propose a methodological approach for modeling catastrophic consequences caused by black swan events, based on complexity science, and framed on Feyerabend’s anarchistic theory of knowledge. An empirical application is presented to illustrate the proposed approach.

Design/methodology/approach

Thom’s nonlinear differential equations of morphogenesis are used to develop a theoretical model of the impact of catastrophes on international business (IB). The model is then estimated using real-world data on the performance of multinational airlines during the SARS-CoV-2 (COVID-19) pandemic.

Findings

The catastrophe model exhibits a remarkable capability to simultaneously capture complex linear and nonlinear relationships. Through empirical estimations and simulations, this approach enables the analysis of IB phenomena under normal conditions, as well as during black swan events.

Originality/value

To the best of the author’s knowledge, this study is the first attempt to estimate the impact of black swan events in IB using a catastrophe model grounded in complexity theory. The proposed model successfully integrates the abrupt and profound effects of catastrophes on multinational corporations, offering a critical perspective on the theoretical and practical use of complexity science in IB.

Details

Critical Perspectives on International Business, vol. 20 no. 1
Type: Research Article
ISSN: 1742-2043

Keywords

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