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Article
Publication date: 10 September 2021

Mehdi Rasouli Ghahroudi, Seyed Hossein Chabok and Kieran M. Conroy

This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the…

Abstract

Purpose

This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the multinational corporation (MNC). The authors examine the dual embeddedness challenges of foreign subsidiaries based in the context of Iran as a transitional market.

Design/methodology/approach

The final sample includes 144 active foreign subsidiaries in Iran from across a broad range of industries. A structured questionnaire was distributed to firms and structural equation modeling was adopted to analyze the results.

Findings

The findings reveal how building external embeddedness in an environment with potentially poor access to valuable knowledge, and risk of knowledge leakage impacts the subsidiary’s ability to subsequently transfer this knowledge within the MNC. The authors identify the significance of absorptive capacity as a way for the subsidiary to access knowledge from and share knowledge with firms in the local market.

Originality/value

Departing from existing work on subsidiary embeddedness in developed markets, the authors reveal how competence creating subsidiaries manage dual embeddedness and knowledge transfer in transition economies that are low in knowledge stocks. The authors unpack how subsidiary absorptive capacity enables access to local knowledge in a transitional market and increases reverse knowledge transfer in the MNC. In doing so, the authors answer calls for work on the dynamic and complementary relationships that exists between subsidiary dual embeddedness, absorptive capacity and knowledge sourcing in less open markets. Focusing on Iran as a transitional economy, this study provides greater contextual nuance to the extant literature on subsidiary dual embeddedness.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 31 May 2018

Colin Charles Williams and Slavko Bezeredi

To transcend the long-standing debate regarding whether workers are driven into the informal economy by either their involuntary “exclusion” or voluntary “exit” from the…

Abstract

Purpose

To transcend the long-standing debate regarding whether workers are driven into the informal economy by either their involuntary “exclusion” or voluntary “exit” from the formal economy, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and an exclusion-driven “lower-tier” of informal workers, and to explore its policy implications.

Design/methodology/approach

To do so, data are reported from a 2015 survey of the informal economy conducted in South-East Europe involving 6,019 face-to-face interviews in Bulgaria, Croatia and FYR Macedonia.

Findings

Identifying a dual informal labour market with three exit-driven informal workers for every exclusion-driven informal worker, a multinomial logit regression analysis reveals that, compared to the exclusion-driven “lower tier”, the exit-driven “upper tier” is significantly more likely to be populated by the formally employed, retired and those not struggling financially. Participation is not affected by the perceived severity of penalties and likely risks of detection, but relative to those in the exclusion-driven “lower tier”, there is a significant correlation between those doing so for exit rationales and their lack of both horizontal trust and vertical trust in formal institutions.

Practical implications

The outcome is a call to transcend the conventional deterrence approach of increasing the penalties and risks of detection. Instead, to tackle those driven by exit rationales, tackling both the lack of horizontal trust that other citizens are operating in a compliant manner and the lack of vertical trust in formal institutions is advocated. To tackle exclusion-driven informal workers, meanwhile, a focus upon the macro-level economic and social conditions which lead to their participation is required.

Originality/value

This is the first paper to empirically evaluate the existence of a dual informal labour market and to evaluate its policy implications.

Details

Employee Relations, vol. 40 no. 5
Type: Research Article
ISSN: 0142-5455

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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…

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

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Abstract

Details

Management Decision, vol. 59 no. 11
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 1 February 1986

Amy S. Wharton

Gender divisions are embedded in and essential to the structure of capitalist production. While most men and women in the United States both now work for wages, they…

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1712

Abstract

Gender divisions are embedded in and essential to the structure of capitalist production. While most men and women in the United States both now work for wages, they rarely work together. Gender segregation has been identified as one of the major issues of the earnings gap between men and women. An explanation of the forces responsible for this has been difficult to achieve. Most theories fail to consider the contribution of demand‐side factors to gender segregation. Neo‐Marxist analysis of labour market segmentation and theories of the dual economy have provided new frameworks for investigating these structural or demand‐side features of industrial organisation. The pattern of blue‐collar segregation in US manufacturing industries is examined drawing on these theories. Employment data from the US census is used to identify how the levels of blue‐collar segregation in manufacturing industries are influenced by the industry's location within the core or peripheral sector of the US economy. Many of segregation's proposed remedies stress the role of supply‐side factors. These strategies focus attention almost exclusively on male and female workers and ignore the structure of the workplace. Strategies that ignore the dualistic nature of the US economy offer only partial solutions and may be counter‐productive. If forced to eliminate or reduce segmentation, employers may simply restructure their labour processes in a way that undermines rather than contributes to gender inequality. It is apparent that the pursuit of gender equality in the workplace is intrinsically related to and dependent on the broader efforts of workers to achieve greater control over production, both at the workplace and in the economy as a whole.

Details

International Journal of Sociology and Social Policy, vol. 6 no. 2
Type: Research Article
ISSN: 0144-333X

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Article
Publication date: 1 November 1997

Peter Douglas Elias

Reveals that in recent years, four models of northern Canadian aboriginal (Indian, Inuit and Métis) communities have been persuasive guides to shaping development…

Abstract

Reveals that in recent years, four models of northern Canadian aboriginal (Indian, Inuit and Métis) communities have been persuasive guides to shaping development strategies. Here they are called the dual economy model, the political economy model, the mixed economy model, and the cultural model. States that each model provides a useful, but partial description and analysis of how northern communities work and that in contrast, aboriginal leaders have advocated a comprehensive approach to development, or simultaneous political, economic and cultural development. Posits that because each dominant model is partial, initiatives launched from any one perspective are likely to satisfy only a part of local development goals. Concludes that model builders should find new ways to integrate the strengths of their respective concepts and create flexible tools needed for comprehensive development.

Details

International Journal of Social Economics, vol. 24 no. 11
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 11 September 2017

Colin C. Williams, Ioana Alexandra Horodnic and Jan Windebank

To transcend the current debates about whether participation in the informal sector is a result of informal workers “exclusion” or their voluntary “exit” from the formal…

Abstract

Purpose

To transcend the current debates about whether participation in the informal sector is a result of informal workers “exclusion” or their voluntary “exit” from the formal sector, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and exclusion-driven “lower-tier” of informal workers.

Design/methodology/approach

To do this, data from a 2013 Eurobarometer survey involving 27,563 face-to-face interviews across the European Union is reported.

Findings

The finding is that in the European Union, there is a dual informal labour market with those participating in the informal sector due to their exclusion from the formal sector being half the number of those doing so to voluntarily exit the formal sector. Using a logistic regression analysis, the exclusion-driven “lower tier” is identified as significantly more likely to be populated by the unemployed and those living in East-Central Europe and the exit-driven “upper tier” by those with few financial difficulties and living in Nordic nations.

Research limitations/implications

The results reveal the need not only to transcend either/or debates about whether participants in the informal sector are universally exclusion-or exit-driven, and to adopt a both/and approach that recognises a dual informal labour market composed of an exit-driven upper tier and exclusion-driven lower tier, but also for wider research on the relative sizes of these two tiers in individual countries and other global regions, along with which groups populate these tiers.

Originality/value

This is the first evaluation of the internal dualism of the informal sector in the European Union.

Details

Journal of Economic Studies, vol. 44 no. 4
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 1 October 2004

Pavlos Mourdoukoutas and Panos Mourdoukoutas

Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized…

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2450

Abstract

Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized industry. Searching for competitive advantage in this new market environment, global manufacturers are becoming more like local service providers by executing a dual strategy: a global cost leadership strategy and a local product differentiation strategy. To achieve global cost leadership, manufacturers cooperate with their competitors to reach economies of scale and reduce costs. To achieve local product differentiation, manufacturers compete with their global partners by cooperating with local service providers to differentiate their offerings. This trend is analyzed to suggest two interdependent mechanisms for building successful bundling strategies. The competitiveness of a bundle that brings together global products and local services depends upon the degree of bundle localization. Sustainable bundling strategies should be treated as bundles of international business relationships.

Details

European Business Review, vol. 16 no. 5
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 1 November 1988

Sean Connolly

The employment trend of working at home with computers in the United Kingdom is investigated, covering what computer homeworking is, who is involved, the form it takes and…

Abstract

The employment trend of working at home with computers in the United Kingdom is investigated, covering what computer homeworking is, who is involved, the form it takes and the types of organisations that have shown interest in it. Information is then provided concerning the extent of the growth in homeworking, and why there has not been the explosion of computer homeworking — as might have been expected as a result of the technological opportunities offered by the microcomputer — is explained.

Details

Industrial Management & Data Systems, vol. 88 no. 11/12
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 March 2006

Masudul Alam Choudhury and Mohammad Ziaul Hoque

The purpose of this conceptual paper is to develop a discussion expounding the Islamic perspective of corporate governance as a special case of a broader decision‐making

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9566

Abstract

Purpose

The purpose of this conceptual paper is to develop a discussion expounding the Islamic perspective of corporate governance as a special case of a broader decision‐making theory that uses the premise of Islamic socio‐scientific epistemology. Islamic epistemology is premised on the divine oneness of God. The worldly explanation of divine unity is done by means of specific laws and instruments that make the Islamic epistemology functionally viable in developing, implementing and inferring from the application of the epistemological rules to different issues. In the present case the issue is of corporate governance.

Design/methodology/approach

The development and conclusions of this discursive paper as a conceptual one point out the possible application of a process‐oriented epistemology of unity of knowledge to corporate governance. The underlying methodology of institutional discourse and integration with dynamic parameters is formalized.

Findings

The end results of the conceptual framework of this paper on corporate governance are contrasted with the approach to corporate governance in mainstream literature. Also the same Islamic theoretical and philosophical background of corporate governance is examined from the dual (mixed) Islamic economic and institutional perspective.

Practical implications

The practical implications of the Islamic idea of corporate governance are immense in studying transaction cost minimization in decision‐making environments. In this regard it is argued that the theory of Islamic corporate governance presents a discursive process, transparency and institutional participation that reduce transaction costs.

Originality/value

The paper contributes fresh knowledge in corporate governance theory in the light of two central issues. First, an organic preference formation is studied by a process model. Second, transaction cost is minimized while pursuing a discursive and participatory model of decision making in an environment governed by the systemic meaning of unity of knowledge as its episteme. Relevant institutional policies can be developed in the light of such systemic discursion under the episteme of unity of knowledge understood and applied in the systemic organic sense.

Details

Corporate Governance: The international journal of business in society, vol. 6 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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