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Article
Publication date: 28 June 2019

Muhammad Hanafi, Dermawan Wibisono, Kuntoro Mangkusubroto, Manahan Siallagan and Mila Jamilah Khatun Badriyah

This research aims to examine the smelter industry’s investment competitiveness in Indonesia as well as to find solutions to improve its competitive advantage for the nation.

Abstract

Purpose

This research aims to examine the smelter industry’s investment competitiveness in Indonesia as well as to find solutions to improve its competitive advantage for the nation.

Design/methodology/approach

This research applies a sequential mixed-methods approach with a second quantitative phase building on an initial first qualitative phase. The qualitative phase is conducted by interviews to find the root causes of problems as well as solutions to gain smelter industries’ competitiveness. The quantitative phase is conducted by a system dynamics model. A descriptive causal loop diagram is created based on interviews and focus group discussions to describe the problems. The concept of competitive advantage of a nation from Porter’s diamond model is applied in this research.

Findings

The results reveal the complexity of smelter industries in Indonesia. The paper also addresses the causes of problems and interaction of variables using a causal loop diagram. To gain the smelter industry’s competitiveness, this paper suggests the potential policy development to increase competitiveness of the smelter industry such as policy for different fiscal incentives to each different mineral, effective export duty and exploration obligation.

Practical implications

The result of this study provides a good basis for government in making policy to improve the competitive advantage of the smelter industry investment in Indonesia.

Originality/value

This is the first research on smelter industry competitiveness that applies Porter’s diamond model and system dynamics model to find solutions in designing appropriate policy to gain competitiveness.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 6 April 2012

Helga Kristjánsdóttir

The purpose of this paper is to seek a clearer understanding of how firms involved in power intensive industries participate in foreign direct investment. The paper asks the…

Abstract

Purpose

The purpose of this paper is to seek a clearer understanding of how firms involved in power intensive industries participate in foreign direct investment. The paper asks the following questions: how skilled are the employees available for hire? What kind of pollution restrictions will be applied to the plant? Is the infrastructure in place to enable free transport of the necessary materials? All of these are factors that can be analyzed on a national level, and are major factors in government policy.

Design/methodology/approach

The research is designated to explain how macro policy can be directed towards firms in the power intensive industry, to impact the competitiveness within the industry. Skilled labor differences is reflecting governmental policy in its willingness to contribute to education. Infrastructure can be viewed as an indicator for long‐term policy planning by the government. The pollution variable reflects on macro policy emphasis by governments, by presenting their emission targets. Investment cost variable gives indication of government policy concerning the ease with which foreign investors can enter into and invest in a particular country. The case country is Iceland, an isolated island that is unable to export its abundance directly and therefore must do so through foreign direct investment.

Findings

The findings indicate that source countries are attracted by the level of skill in Iceland at the beginning stage of operations when faced with fixed threshold cost. Once the plants have overcome fixed costs, there are positive impacts on marginal investment, the more skilled the source country is compared to the host. Other factors that proved to be important in this case study are distance, infrastructure, government stability, pollution quotas, and the fishing resource.

Originality/value

The relative friendliness a country's policies display towards an industry can make a huge difference when it comes to how successful a business can be, so studying these national‐level policies can help an individual determine what kind of direction to take on the day‐to‐day operational decisions.

Details

International Journal of Energy Sector Management, vol. 6 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 8 February 2016

Teck Hui Loi

A central claim of stakeholder theory is that the purpose of business is to create value for various stakeholders. However, managing diverse interests of stakeholders can be…

3677

Abstract

Purpose

A central claim of stakeholder theory is that the purpose of business is to create value for various stakeholders. However, managing diverse interests of stakeholders can be challenging in a business environment entrenched with different value systems. Lacking of qualitative narratives and complicated nature of corporate governance perhaps have impeded the stakeholder theory to become a major theory of strategic management and organizational ethics on its own. The purpose of this paper is to ascertain the strategic values of stakeholder management.

Design/methodology/approach

Three stakeholder management case studies, taken in the context of a large corporatized public organization, were conducted in attempting to amplify the underpinning theories of stakeholder identified by Laplume et al. (2008). Tape-recorded semi-structured interviews were transcribed into texts. To reduce retrospective bias, some typical secondary records were examined.

Findings

Stakeholder management can be a core competence that draws resource capabilities throughout a firm for generating desirable triple bottom line results, which also eases the tensions between shareholders and stakeholders of the firm.

Research limitations/implications

Stakeholder management is an organizational mechanism tightly embedded in the firms’ strategic organizing and strategizing routines. It is vital for generating desirable triple bottom line results. This conjures up potential linkages between the stakeholder theory and the resource-based view (RBV) theory as pursuing stakeholder management can be a hard-to-emulate strategic asset within the framework of the RBV theory.

Originality/value

There is relatively scant literature that pays attention on amplifying stakeholder management theory in the public sector organizations. Through the unlocking of some valuable public sector data sets, this research can make a positive contribution in the areas.

Details

Management Decision, vol. 54 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 21 October 2013

Barbara Weiss and Jay van Wyk

The purpose of this paper is to assess the wide-ranging implications of the global economic crisis and provide a comprehensive assessment of the how the structure of the market…

Abstract

Purpose

The purpose of this paper is to assess the wide-ranging implications of the global economic crisis and provide a comprehensive assessment of the how the structure of the market and competition within it is changing as a result.

Design/methodology/approach

The research methodology draws on a “financialization” market construct and adapts it to include the public-private interfaces (PPIs) that have appeared since the global economic crisis.

Findings

The crisis has turned the global system on a dime. The decades-long surge of globalization, as characterized by market liberalization and ever more fast-paced investment flows, has abated and, in some cases, been dramatically reversed. It has altered the international investment paradigm. Firms have revised their risk functions and are re-arranging their stakeholder relationships.

Research limitations/implications

Much needs to be done to assess the wide-ranging implications of the most recent crisis. This is just one set of “snapshots”, if you will, of the way in which market structure and competition are being altered.

Originality/value

The re-arrangement of stakeholder relationships of both privately owned firms and sovereign enterprises will have far-reaching effects on market structure in such areas as market access and competition, as well as on civil society, writ large.

Details

critical perspectives on international business, vol. 9 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 27 May 2014

Stuart John Barton

This paper aims to establish the level (if any) of Chinese State influence on setting the terms of Foreign Direct Investment in Zambia, specifically their influence on improving…

Abstract

Purpose

This paper aims to establish the level (if any) of Chinese State influence on setting the terms of Foreign Direct Investment in Zambia, specifically their influence on improving access for Chinese investors through the establishment of Special Economic Zones.

Design/methodology/approach

The paper presents a process trace to test primary archival data and elite interviews against growing academic and popular “China in Africa” literature.

Findings

After examining primary data, existing academic and popular literature is found to poorly describe China’s economic influence in Zambia, primarily by largely speculating on non-evident coercive investment practices. Instead, the paper concludes that similarities between new Chinese investment and retreating Western sources in Africa can better be described as “Sino-Substitution”.

Research limitations/implications

The primary research has focused on English language Zambian sources; access to further Chinese sources would improve the breadth of the study.

Practical implications

The study has found the terms of new Chinese investment in Zambia to be far more calculated, consensual and symbiotic than described in the existing literature. This more balanced view of Chinese investment is important if other foreign investors are to retain or regain competitive advantage in the region.

Originality/value

No existing research has traced empirically the process through which the Zambian Government developed Special Economic Zones into the country’s largest investment vehicle, or how Chinese investment came to dominant capital flows within them. As investment in these zones grows, a better understanding of the Zambia–China relationship should help other investors compete, and improve Zambia’s access to capital.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 7 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 February 1991

Om P. Kharbanda and Ernest A. Stallworthy

The concept of company culture is now playingan ever‐increasing role in the continuing endeavourto work towards ever better companymanagement, particularly in the industrial…

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Abstract

The concept of company culture is now playing an ever‐increasing role in the continuing endeavour to work towards ever better company management, particularly in the industrial field. This monograph reviews the history and development of both national and company cultures, and then goes on to demonstrate the significance of a culture to proper company management. Well‐managed companies will have both a “quality culture” and a “safety culture” as well as a cultural history. However, it has to be recognised that the company culture is subject to change, and effecting this can be very difficult. Of the many national cultures, that of Japan is considered to be the most effective, as is demonstrated by the present dominance of Japan on the industrial scene. Many industrialised nations now seek to emulate the Japanese style of management, but it is not possible to copy or acquire Japan′s cultural heritage. The text is illustrated by a large number of practical examples from real life, illustrating the way in which the company culture works and can be used by management to improve company performance.

Details

Industrial Management & Data Systems, vol. 91 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 April 2014

Osama Sam Al-Kwifi and Zafar U. Ahmed

The purpose of this study is to explore the strategies that companies could adopt to build a global brand during industry turbulence. CHALCO company was selected as a case study…

Abstract

Purpose

The purpose of this study is to explore the strategies that companies could adopt to build a global brand during industry turbulence. CHALCO company was selected as a case study to conduct this research.

Design/methodology/approach

A multi-faceted approach to data collection is used to demonstrate that a company strategy in the form of targeted global branding is the main factor behind success. CHALCO annual reports and public announcements were collected and analyzed. Different secondary sources are exploited to confirm the research results and explore industry structure.

Findings

Results show that CHALCO is building a global brand by adopting master brand Strategy, in which the company is focusing on a straightforward strategy with two components: develop CHALCO as a strong master brand and remain to support the sub-brands. To achieve this strategy, CHALCO were seeking more innovations to reach better quality and reliability.

Originality/value

The literature reports considerable research that investigates global branding. However, this case study presents practical example of how companies can build global branding in turbulent environment.

Details

Journal of Technology Management in China, vol. 9 no. 1
Type: Research Article
ISSN: 1746-8779

Keywords

Article
Publication date: 1 October 2010

P. van der Zwan and P. Nel

The Minerals and Petroleum Resources Royalty Act (MPRRA) became effective on 1 March 2010. This legislation may have a significant impact on employment, foreign investment and…

1258

Abstract

The Minerals and Petroleum Resources Royalty Act (MPRRA) became effective on 1 March 2010. This legislation may have a significant impact on employment, foreign investment and future exploration in the South African mining industry. This article reports on a critical analysis of the MPRRA prior to its implementation in order to identify aspects that may impact adversely on the South African mining industry and would require further research after the implementation of the MPRRA. Based on the findings, the authors recommend that the impact of the level of royalties levied as well as the mechanism to promote downstream beneficiation be researched to establish whether the legislators ought to reconsider these provisions in the light of their impact on the mining industry.

Article
Publication date: 14 April 2014

Xiaohua Yang and Clyde D. Stoltenberg

This paper aims to re-examine the role of institutions in the rise of made-in-China multinationals. Specifically, the paper seeks to understand how changes in the global…

2099

Abstract

Purpose

This paper aims to re-examine the role of institutions in the rise of made-in-China multinationals. Specifically, the paper seeks to understand how changes in the global environment, especially global financial crisis, have solidified the Chinese government's role in pushing and encouraging Chinese firms to engage in outbound foreign direct investment (OFDI) activities.

Design/methodology/approach

This is a conceptual paper. The analysis is based on a large number of publicly available sources, including research papers, government documents, and reports. The paper strives to triangulate the validity of the data with multiple sources.

Findings

The study finds that while the role of the state in China has been evolving since the start of the economic reforms in 1978, by no means has it been lessened. Instead, the state has asserted its role specifically to grow Chinese multinationals in size and in number, by leveraging the financial resources accumulated over the last 30 years, by taking advantage of the cheap assets made available globally by the recent financial crisis and by institutionalizing its “Go Global” strategy.

Research limitations/implications

The study implies that the role of the state will be further solidified through China's national goal of enhancing competitiveness via knowledge acquisition through OFDI and simultaneously, multinationals’ OFDI initiatives and strategies will be reinforced by the state's economic policies and goals while their commercial interests will take on an increasing importance in the global marketplace and their behavior will co-evolve with and be reshaped by local, national, and international environments. The paper suggests that future studies employ co-evolutionary theory to investigate the role of state-owned enterprises (especially the functions of their CEOs) as well as non-state actors in shaping the institutional framework in China. Future studies should verify some of the ideas with empirical data and strive to triangulate different data sources to increase data quality.

Practical implications

The study also provides implications to Chinese policy makers on how to balance the government's role as conductor, enabler, protector, and constrainer while allowing Chinese multinationals to integrate into the global market for the benefit of both China and the world economy.

Originality/value

This study represents an original contribution to this topic. The research contributes to the study of globalization of Chinese enterprises by exploring the renewed dynamic relationship between the state and the firm after the 2008 global financial crisis.

Details

International Journal of Emerging Markets, vol. 9 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 31 December 2013

Jung-O Ko and Jung-ran Cho

Korea and China have promoted a bilateral FTA since 2005 to upgrade their economic relationships. If the Korea-China FTA is concluded, then trade between the two countries is…

Abstract

Korea and China have promoted a bilateral FTA since 2005 to upgrade their economic relationships. If the Korea-China FTA is concluded, then trade between the two countries is likely to involve substantial changes both quantitatively and qualitatively. Offer lists submitted by Korea include steel, petrochemicals and machinery and those by China include some agricultural and marine products as well as nonferrous metals. Korea's interest in the Korea-China FTA has focused mainly on damage to the agricultural sector and there have been a lot of studies on the effects of the FTA on Korean agricultural sector. However, little is known about why China includes the nonferrous metals industry for early voluntary liberalization and its implications for the domestic economy. Nonferrous metals industry is one of China’s national strategic sectors and has a large supply excess in the country. This study targets the survey of Chinese nonferrous metals industry and trade structure and considers the problem of nonferrous metals in the context of negotiations for the Korea-China FTA and its implications for a higher-quality Korea-China FTA.

Details

Journal of International Logistics and Trade, vol. 11 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

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