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The purpose of this paper is to experiment a dynamic performance management (DPM) approach to explore and assess the business dynamics of digital ride-hailing platforms with a focus on both supply and demand sides, and related interplays.

The research adopts the DPM framework supported by simulation-based experimentations for developing a systemic case interpretation of Uber Inc. and its specific business complexity.

The emerging scenario analysis reveals that changes in the commission percentage for drivers and cutting prices for customers (car hailers) by competitors have significant impacts on the car-hailing industry.

DPM and associated simulation-based analysis of the ride-hailing business may provide significant managerial decision insights and a ground base research in a relatively less-explored field within the strategic management domain.

The purpose of this paper is to validate the theoretical finding that digital MNEs avoid physical presence norms of permanent establishment and royalty characterization rules for business and royalty taxation, respectively, to escape tax incidence in the market economy, using information, communication and technology features and transfer pricing (TP) manipulations.

Multiple case studies of MNEs from technology sector, based on judicial decisions in 141 cases, over taxability of profits earned from Indian economic activities. Additional in-depth case study of the Uber Group to study the tax avoidance structures under platform economy, by routing of Indian profits through The Netherlands, a tax haven.

The study finds a significant number of digital MNEs earning profits from India and avoiding tax by defying physical presence and royalty characterization. In majority of the cases, demand-side business activities are discharged through incorporating and remunerating affiliates at cost plus low markup, thus avoiding tax incidence, using TP manipulations under the arm’s length principle applied by governments for benchmarking the intragroup transactions of the MNEs.

The research findings validate the view that digital features promote tax avoidance in the market economy.

The originality of the study lies in the validation of profit shifting through digital features from the developing market economy and portending that digital MNEs defy physical presence to avoid business taxation through TP manipulations.

Competing in Emerging Markets; Internationalization of Service Firms; Global Marketing.

Senior undergraduate or graduate students in business schools.

Uber first entered the South Korean taxi hailing service in Seoul in September 2013. In March 2015, the company shut down its operations after being charged for operating an illegal service. However, in January 2016, Uber decided to re-launch Uber’s premium service, UberBLACK after working with the city government. Given the country’s unique characteristics, was the decision to re-enter the market justifiable? Would Uber’s new strategies including partnering with a local company be sufficient? How could Uber gain more market share against its local powerful competitors?

Outcomes This case allows students to understand the challenges of internationalizing services of a global company in an emerging market that has strong national cultures and domestic preferences. The students will learn how to analyze the country and industry external environment as well as internal resources and capabilities to formulate the appropriate market entry strategies and to effectively implement them. The students will also learn the critical role of host country government and how to manage its relationship, the first- and second-mover advantages/disadvantages and the sustainability of innovative business models.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy

This paper provides a perspective on the field of nonmarket strategy. It does not attempt to survey the literature but instead focuses on the substantive content of research in the field. The paper discusses the origins of the field and the roles of nonmarket strategy. The political economy framework is used and contrasted with the current form of the resource-based theory. The paper argues that research should focus on the firm level and argues that the strategy of self-regulation can be useful in reducing the likelihood of challenges from private and public politics. The political economy perspective is illustrated using three examples: (1) public politics: Uber, (2) private politics: Rainforest Action Network and Citigroup, and (3) integrated strategy and private and public politics: The Fast Food Campaign. The paper concludes with a discussion of research issues in theory, empirics, and normative assessment.

This case uses Uber Technologies Inc. to engage students in a serious conversation about how a firm both affects its stakeholders and is affected by its stakeholders as well as the role of strategic leadership in the amount of emphasis placed on ethical practices. Uber represents a visible high-growth startup that has received considerable positive and negative attention in the media; however, few people know of the extent of its aggressive management approach. Much of the publicity about Uber is both a direct consequence of and a direct consequence for stakeholder relationships. Students are asked to analyze Uber’s approach and offer suggestions for moving forward.

This case was created using secondary data sources. The issues for Uber that led the authors to write this case were not very flattering to Uber, and therefore, the authors decided to use secondary sources. Since Uber and many of its direct competitors were private companies, the authors collected as much financial data as the authors could from publicly available sources. Also, due to the contentious nature of some of the managerial tactics used within Uber, the use of secondary data sources was warranted.

This case was crafted with senior undergraduate students in strategic management as the primary audience, but is also relevant for MBA-level strategy courses as well. This case touches upon core content in the vast majority of undergraduate strategic management courses with a special emphasis on two concepts underrepresented in most strategic management textbooks, stakeholder theory and ethical decision making.

Uber, the virtual service that connects drivers to passenger, presents a novel form of work-organization in which managerial functions are transposed into a virtual platform. This ethnographic study documents how Uber drivers in the city of Monterrey, Mexico navigate and come to make sense of the Uber model of work. Employing the conceptual device of the work-game, this study argues that engagement in the game of “earning coins” coupled the interest of drivers in generating the most-possible income with the interest of management in maintaining a readily available labor pool. Reinforcing this coupling was Uber’s deployment of an entrepreneurial ideology of “being your own boss,” which was especially important given the company’s lack of a physical management structure. However, as Uber takes advantage of the deindustrialization that has gripped Monterey, it attracts drivers exhibiting varied employment trajectories. This in turn creates different modes of playing the work-game and thus generates sharply divergent subjective understandings of the work, whose nature this chapter explores.

While digital platforms tend to be unproblematically presented as the infrastructure of the sharing economy – as matchmakers of supply and demand – the authors argue that constituting the boundaries of infrastructures is political and performative, that is, it is implicated in ontological politics, with consequences for the distribution of responsibilities (Latour, 2003; Mol, 1999, 2013; Woolgar & Lezaun, 2013). Drawing on an empirical case study of Uber, including an analysis of court cases, the authors investigate the material-discursive production of digital platforms and their participation in the reconfiguring of the world (Barad, 2007), and examine how the (in)visibility of the digital infrastructure is mobilized (Larkin, 2013) to this effect. The authors argue that the representation of Uber as a “digital platform,” as “just the technological infrastructure” connecting car drivers with clients, is a political act that attempts to redefine social responsibilities, while obscuring important dimensions of the algorithmic infrastructure that regulates this socioeconomic practice. The authors also show how some of these (in)visibilities become exposed in court, and some of the boundaries reshaped, with implications for the constitution of objects, subjects and their responsibilities. Thus, while thinking infrastructures do play a role in regulating and shaping practice through algorithms, it could be otherwise. Thinking infrastructures relationally decentre digital platforms and encourage us to study them as part of ongoing and contested entanglements in practice.

Industrial relations, organizational behavior, and human resource management scholars have studied numerous aspects of internal workplace conflict resolution, ranging from the design of conflict resolution systems to the processes used for resolving conflicts to the outcomes of the systems. Scholars from these specialties, however, have paid considerably less attention to external workplace conflict resolution through litigation. This chapter analyzes certain areas of such litigation, focusing specifically on workplace conflicts involving issues of managerial and employee misclassification, independent contractor versus employee status, no-poaching agreements, and executive compensation.

Leading recent cases involving these issues are examined, with particular attention given to the question of whether the conflicts reflected therein could have been resolved internally or through alternative dispute resolution (ADR) methods rather than through litigation.

Implications of this analysis are drawn for workplace conflict resolution theory and practice. In doing so, I conclude that misclassification disputes could likely be resolved internally or through ADR rather than through litigation, but that no-poaching and executive compensation disputes could very likely not be resolved internally or through ADR.

The chapter draws on and offers an integrated analysis of particular types of workplace conflict that are typically treated separately by scholars and practitioners. These include misclassification conflicts, no poaching and labor market competition conflicts, and executive compensation conflicts. The originality and value of this chapter are to show that despite their different contexts and particular issues, the attempted resolution through litigation of these types of workplace conflicts has certain common, systematic characteristics.

This study aims to explore the antecedents that generate value co-destruction, the negative outcomes resulting from interactive value formation, in the sharing economy context, particularly taxi services. The focus of the study is on customers’ Uber reviews that are written in English and posted online. Three keywords, “bad”, “terrible” and “awful”, were used to capture online narratives linked to customers’ negative experiences with Uber. Out of the 758 online reviews, 75 negative reviews were analysed in this study.

A grounded theory approach was used for data analysis.

Two distinct themes resulted in value co-destruction: Uber drivers’ bad behaviour and poor customer service. The managerial implications include that Uber clearly should invest more resources to minimise the negative experiences of its customers by clearly defining the taxi drivers’ tasks and responsibilities. In addition, when customers report their dissatisfaction, they should be dealt with promptly and effectively through good customer service.

First, the netnography study, by its nature, was restricted to those customers who shared their reviews online. The study did not consider those customers who have not posted their reviews online. Second, the focus of the study was on customer reviews that were written in English. Third, only three keywords (“bad”, “terrible” and “awful”) were used in the data selection process, limiting the number of review posts (75) that were analysed in this study. In addition, even if this study does not produce statistically generalizable findings, the findings are valuable in an analytical sense.

From a managerial perspective, Uber clearly should invest more in resources to minimise the negative experiences of its customers (both domestic customers and tourists) by clearly defining the taxi drivers’ tasks and responsibilities. If the drivers’ tasks are unclear, then customers cannot be served in an effective manner and with consistent service quality. The taxi drivers, regardless of their full-time or part-time work shifts, should ensure that quality services are offered to customers. Providing high-quality service might reduce the number of complaints and result in positive comments and compliments.

This study addresses the gap in previous literature by examining customers’ negative experiences during the overall service encounter and antecedents of value co-destruction in the context of Uber. This study contributes to a better understanding of value co-destruction within the sharing economy.