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Article
Publication date: 20 July 2012

Rick Molz and Catalin Ratiu

This paper seeks to develop a theoretical explanation of conflicts and incompatible interpretations of events between agents of multinational corporations (MNCs) and actors…

Abstract

Purpose

This paper seeks to develop a theoretical explanation of conflicts and incompatible interpretations of events between agents of multinational corporations (MNCs) and actors present in certain host countries. It aims to situate the argument in comparative economic systems as a part of a broader social system. The socio‐economic system can be modeled using institutional theory, particularly using Scott's three pillars and the concept of formal and informal institutions. Within different socio‐economic systems a dominant logic is developed, and this becomes internalized among actors and agents as behavioral scripts.

Design/methodology/approach

The paper uses a multi‐level and multi‐disciplinary conceptual analysis, developing a model of dominant logic and behavioral scripts with MNC agents and traditional emerging economy actors.

Findings

MNC agents and traditional emerging economy actors have difficulty comprehending the logic of the other, creating a fertile context for conflict.

Research limitations/implications

An ideal type template is developed that can be used for empirical investigations focusing on situations where disagreement and conflict occur when MNCs operate in traditional emerging economies.

Practical implications

By integrating the authors' conceptualization into training for expatriate managers, the potential for conflict can be reduced.

Originality/value

This multi‐level and multi‐disciplinary model allows grounded development of understanding of conflicts or potential conflicts in the MNC agent‐traditional emerging economy actor context.

Content available
Article
Publication date: 20 July 2012

Joanne Roberts and Christoph Dorrenbacher

215

Abstract

Details

Critical perspectives on international business, vol. 8 no. 3
Type: Research Article
ISSN: 1742-2043

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

88270

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

Article
Publication date: 16 July 2018

Rajneesh Narula

The purpose of this paper is to introduce a new theoretical framework called the “extended dual economy model”. Based on the seminal work of Lewis (2014), the author uses it to…

Abstract

Purpose

The purpose of this paper is to introduce a new theoretical framework called the “extended dual economy model”. Based on the seminal work of Lewis (2014), the author uses it to explain the sectoral specialisation of home countries and their firms and MNEs.

Design/methodology/approach

The paper is multi-disciplinary and entirely conceptual, with cool ideas but very few numbers and equations.

Findings

Emerging economies exhibit a “duality” in their economic structure that reflects itself in two largely different sets of location (L) characteristics. They are simultaneously home to both “traditional” sectors, which are resource and labour intensive, as well as “modern” sectors, which are knowledge and capital intensive, each of which can be analysed as having two sub-economies. These different sets of location advantages shape the firm-specific advantages of EMNEs and their FDI.

Research limitations/implications

This analysis helps to underline what shapes the ability of home countries to “emerge”, and the ability of their firms to grow and their MNEs to become internationally competitive. Few EMNEs can thrive in international markets without concurrent growth in their domestic markets. Maintaining the appropriate location assets to optimally support both types of sectors is costly. Each type of sub-economy requires different kinds of support sectors, infrastructure and policies, with little overlap. Weaknesses in its home country L advantages hinder the long-term competitiveness of their EMNEs.

Practical implications

Few EMNEs can thrive in international markets without concurrent growth in their domestic markets. Weaknesses in its home country L advantages hinder the long-term competitiveness of their EMNEs.

Originality/value

The extension of the Lewisian dual economy model allows a number of interesting new insights because it allows us to consider firms, non-firms, informality and the bottlenecks associated with promoting knowledge-intensive sectors in a globalised world. It emphasises structural change, and the need to manage pathways and effectively channel growth.

Details

International Journal of Emerging Markets, vol. 13 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Abstract

Details

International Journal of Sociology and Social Policy, vol. 12 no. 4/5/6/7
Type: Research Article
ISSN: 0144-333X

Article
Publication date: 10 July 2017

Christoph F. Breidbach and Roderick J. Brodie

The purpose of this paper is to identify and delineate research directions that guide future empirical studies exploring how engagement platforms facilitate value co-creation and…

8704

Abstract

Purpose

The purpose of this paper is to identify and delineate research directions that guide future empirical studies exploring how engagement platforms facilitate value co-creation and actor engagement in the context of the sharing economy.

Design/methodology/approach

The authors adopt a midrange theorizing approach with service-dominant logic as the integrating meta-theoretical perspective to develop a theoretical framework about service platforms, engagement platforms, and actor engagement in information communication technology (ICT) mediated environments. The authors then contextualize the framework for the sharing economy.

Findings

The authors introduce 20 unique research questions to guide future studies related to service ecosystems, engagement platforms, and actor engagement practices in the context of the sharing economy.

Research limitations/implications

The sharing economy is an emerging phenomenon that is driven by the development and proliferation of engagement platforms. The engagement platform concept therefore provides a novel perspective for exploration of how ICT can be utilized to facilitate value co-creation and engagement amongst interdependent economic actors in a service ecosystem.

Practical implications

The purpose of this paper is to guide future academic research, rather than managerial practice. Future research based on the framework can help guide decision-makers to implement and use engagement platforms more effectively.

Originality/value

This paper offers new insight into the important intersection of ICT and service research, and guides future studies exploring the role of engagement platforms in the context of the sharing economy.

Details

Journal of Service Theory and Practice, vol. 27 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Open Access
Article
Publication date: 13 April 2017

Jean J. Boddewyn

This paper aims to determine the essential “collective goods” which a foreign multinational enterprise (MNE) must have before production can start in a remote area of an emerging…

1391

Abstract

Purpose

This paper aims to determine the essential “collective goods” which a foreign multinational enterprise (MNE) must have before production can start in a remote area of an emerging economy, and to consider the alternative governance modes available to procure or create these goods.

Design/methodology/approach

This purpose is examined conceptually and theoretically. First, the concept of “collective goods” is presented, followed by a consideration of the traditional “buy, ally or make” contractual approaches available to obtain goods and services. These approaches are repositioned in the context of an “emerging economy” so that alternative “ordering systems” as well as “non-contractual” means of obtaining things have to be considered in the context of internalization and reciprocity theories.

Findings

It is difficult to obtain collective goods in remote areas of emerging economies where private ordering prevails and even succeeds but at high transaction costs and with substantial government intervention. However, the use of non-contractual modes of exchange such as reciprocity is available to facilitate exchanges between market MNEs and nonmarket state offices and civil-society associations such as non-governmental organizations with which collaboration is necessary but which cannot be acquired or controlled by MNEs. However, market firms can use philanthropy and lobbying to obtain the help of these nonmarket actors who know how to operate under private and state-ordering systems.

Research limitations/implications

Theoretical implications: Internalization theory explains why MNEs are able to obtain collective goods by providing them “in-house”, while reciprocity theory exemplifies how non-contractual modes of exchange can substitute for the traditional but contractual “buy, ally and/or make”.

Practical implications

Managerial implications: In terms of the organizational structure of the subsidiary of an MNE operating in an emerging economy, it appears that the line functions of procurement, engineering and production may rely more on contractual exchanges with foreign suppliers, while the staff functions of public affairs, government relations and human resources may be more adept at using reciprocal exchange with local suppliers.

Originality/value

The provisioning of the collective goods when a firm builds its facilities in a remote and underdeveloped part of an emerging economy has hardly received any research attention nor have the non-contractual ways – such as reciprocity – available in the context of private ordering to obtain these goods.

Details

PSU Research Review, vol. 1 no. 1
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 11 October 2011

Xuanwei Cao and Christoph Zabe‐Brechtel

The purpose of this paper is to elucidate the dynamic interactions and co‐evolution of institutions with the technology and organization fields in emerging industry development…

Abstract

Purpose

The purpose of this paper is to elucidate the dynamic interactions and co‐evolution of institutions with the technology and organization fields in emerging industry development. Insights and inspirations from comparison of the triangle relationship among government, market and local community in different institutional contexts could contribute to possible institutional innovation in the context of large‐scale institutional transition. In this way, this paper is expected to offer insights to the development of emerging industries in China.

Design/methodology/approach

The paper reviews the focal literature focusing on institutional change and the co‐evolution of institution, industry and technology. A multi‐level conceptual framework is put forward to explain the mechanism for the co‐evolution of technology, organization and institution. A multi‐case comparison method was applied to compare and disclose the process of co‐evolution of institutions, and the technology and organizational fields, as well as varied paths of industry development in different institutional contexts.

Findings

Emerging industry development in China is still presenting the character of path dependence to a great extent under traditional institutional arrangement, while the power and possible contribution from broader actors in the local community have been ignored. Driving force for a more innovative institutional transition towards emerging industry development should consider decentralized institutional arrangement and actions at local community instead of “command and control” from central planning.

Practical implications

First, the comparison of wind energy industry development in three countries creates possibilities for further analysis and reference for China's emerging industry. Second, the illustration of the triangle relationship among government, market and local community in different countries helps policy makers in China reconsider and redesign an effective institutional framework for balancing the powers among indigenous community, local government and market. Institutional alignment should be listed as an important consideration during the process of the policy design of such an effective institutional framework.

Originality/value

The paper presents a model to understand the dynamic co‐evolution of the institution, technology and organizational fields. It confirms the role of institution in promoting emerging industry development. Particularly, it offers inspirations for the development of emerging industries in nations facing large‐scale institutional transition.

Details

Journal of Science and Technology Policy in China, vol. 2 no. 3
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 8 June 2015

Foivos Anastasiadis and Nigel Poole

This paper aims to report research into emergent supply chain management (SCM) practices in a context in which the imperative for business development requires efficient…

2707

Abstract

Purpose

This paper aims to report research into emergent supply chain management (SCM) practices in a context in which the imperative for business development requires efficient inter-firm collaboration. It explores the way key supply chain (SC) actors perceive entrepreneurial opportunities and evaluates their SC processes.

Design/methodology/approach

A whole chain approach, using qualitative methods, was used to investigate retail, wholesale and production links, with a special focus on small businesses which predominate in the agrifood sector. The methodology used is of vital importance to understand the complexity of the sector and the interdependencies among stakeholders.

Findings

Results suggest several SC malfunctions originating in diverse strategic planning practices and different entrepreneurial mentalities which hinder the process of emergence from traditional to more modern chain configurations. The fact that the nature of new opportunities in the agrifood sector (e.g. organics) was poorly understood, obstructs further development of the agrifood sector. Other key findings suggest problematic flows of information within the SC and minimal trust among stakeholders.

Research limitations/implications

Sampling constraints suggest that caution should be exercised in extrapolating these conclusions elsewhere. Nonetheless, further investigation using similar approach should be applied in a wider context not only in Greece but also in other similar economies characterized by nascent SCs.

Originality/value

The study investigates the entire SC of a vital sector for numerous small- and medium-sized enterprises, with lessons for diverse emerging agribusiness economies. Insights, not only for the direct SC stakeholders but also for policymakers, could serve to unlock the potential of such sectors and also the exploitation of new opportunities in emerging markets which can be stifled by stagnant sectoral structures and conservative business attitudes.

Details

Supply Chain Management: An International Journal, vol. 20 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 3 July 2017

Florian Becker-Ritterspach, Knut Lange and Jutta Becker-Ritterspach

The purpose of this paper is to develop a theoretical framework that addresses the question of how and why multinational corporations (MNCs) from developed economies engage in…

1028

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework that addresses the question of how and why multinational corporations (MNCs) from developed economies engage in divergent patterns of institutional entrepreneurship (IE) in emerging markets.

Design/methodology/approach

The authors combine IB’s concept of institutional voids with comparative capitalism’s insights into the institutional embeddedness of firm capabilities and IE. This theoretical cross-fertilisation is instrumental in developing a refined understanding of institutional voids and how MNCs proactively engage with them.

Findings

The authors emphasise the notion of institutional voids as a relative concept and, thereby, move away from an ethnocentric view of emerging markets as “empty spaces” that are void of institutions. The authors’ framework proposes that MNCs from liberal and coordinated market economies experience institutional voids differently and engage in different patterns of IE.

Research limitations/implications

The main limitation of this work is that the propositions are restricted to the country-of-origin effect and that the observations are based on anecdotal evidence only. Against these limitations the authors call for a more comprehensive research agenda in their conclusion.

Social implications

The paper sensitises policymakers in emerging markets for the potentially different patterns of involvement of MNCs in their institutional environments. Specifically, the authors argue that MNCs may have a strong inclination to rebuild critical elements of their home country’s institutional setting in emerging markets. This touches upon questions of national sovereignty and highlights the need for emerging market policymakers to decide which kinds of institutional settings they would like or not like to see imported.

Originality/value

The paper provides a new and critical perspective of the mainstream IB concept of institutional voids. The authors’ key contribution is to highlight that the home country institutional context may substantially matter in how MNCs perceive and respond to institutional voids in emerging markets.

Details

critical perspectives on international business, vol. 13 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

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