Subsidiaries Of Corporations Research Articles

Strategic actions of the largest foreign companies in Russia in the first years of strengthening sanctions against Russia

ABSTRACT We evaluated the performance of the largest Russian subsidiaries of multinational corporations in 2020-2024. For this, we explored the ‘Forbes 50 Largest Foreign Corporations in Russia’ lists for 2020–2024. The 2020 and 2021 lists differed by a few companies. The 2021 and 2022 lists differed by a half, mostly because of the exit from Russia of 16 ‘super-giants’ (global corporations with total revenues above US$ 100 billion) of different industries. Simultaneously, ‘Forbes 50 Largest Foreign Corporations in Russia 2023’ accommodated almost 20 companies with smaller worldwide sales. In 2023, 13 more companies left ‘Forbes 50 Largest Foreign Corporations in Russia’ and 13 companies entered this list. Such ‘new entrants’ to the world of Forbes are from China, Turkey, Belorussia, and several other countries, including the countries that do participate in sanctions against Russia. In general, only 18 companies from the ‘Forbes list of foreign companies in Russia 2021’ remained in the ‘Forbes list of foreign companies in Russia 2024’. The ‘Forbes list of foreign companies in Russia 2024’ may be considered a list of companies that made a choice to try to continue business in Russia and withstand both the Western sanctions and Russian measures against ‘unfriendly countries’.

Harnessing network power: Weaponised interdependence in global tax policy

AbstractFor decades, global tax policy has grappled with the challenge of mobile capital, failing to harness the regulatory potential of network power. This oversight has allowed tax havens to flourish, and multinational corporations and wealthy elites to circumvent state authority, undermining national fiscal policies and democratic capacity to meet grand societal challenges, such as climate change and inequality. But recent regulatory innovations pave a different way forward. This article spotlights the dynamics of ‘weaponized interdependence’, suggesting a critical role for strategically targeting global corporate and financial networks in reinvigorating action against tax havens, tax avoidance and tax evasion. Identifying and exploiting network chokepoints – financial institutions, corporate subsidiaries and expert intermediaries – can empower states to reassert their sovereignty and counterbalance the structural advantages of global capital. This approach helps us understand how and why recent regulatory measures have effectively countered financial secrecy, profit shifting and sanctions evasion, repairing public finances and restoring democratic integrity. In an age where weaponised interdependence is predominantly linked to national security, this recasting of global tax policy highlights a progressive path for using network power to develop effective global economic frameworks, strengthen democratic capacity and address contemporary challenges.

Role of workforce analytics in fulfillment experience of employees through work volition

Purpose Labor process theory explains that employers prefer technology and systems over employees for efficiency gains. However, the mechanisms explaining the influence of technology and systems on different work-related employee outcomes are still a question mark. The purpose of this study is to test a mediation mechanism explaining how workforce analytics influence the work fulfillment experience of employees through work volition. Design/methodology/approach This study collected dyadic data from 55 HR managers and 350 employees serving in 55 different subsidiaries of Multinational Corporations in Pakistan. Findings The statistical results demonstrate that workforce analytics negatively affect fulfillment at work. However, work volition may reduce the negative relationship between workforce analytics and fulfillment at work. This study also found a significant but negative relationship between work volition and fulfillment at work. Originality/value This study found that integrating the use of workforce analytics with the work volition of employees is critical for positive employee outcomes.

Corporate environmental behavior toward sustainable development: Motivations, benefits, and challenges of ISO 14001 adoption at Japanese subsidiaries in Thailand

AbstractSince the Earth Summit held in Rio de Janeiro in 1992, ISO 14001 has become an internationally recognized environmental management system that has spread all over the world. The existing literature has examined in detail the motivations, benefits, and challenges of ISO 14001 adoption in developed countries. However, there is a relative lack of studies on the adoption of ISO 14001 by the subsidiaries of multinational corporations (MNCs) in developing countries, and in Thailand in particular. This paper investigates the motivations, benefits, and challenges of ISO 14001 adoption at Japanese subsidiaries in Thailand based on the results of a questionnaire survey of 100 subsidiaries and a semi‐structured interview survey of 11 subsidiaries. We find that the main motivations are pressures by the national and local governments, as well as by the customers. In addition to the tax incentives, the main benefits are gaining competitiveness, enhancing the corporate image, and maintaining efficient management. We also identify the following challenges: the costs of ISO 14001 adoption, and the training and awareness of the employees. Compared with the existing literature, we find some new motivations, benefits, and challenges related to the local context of ISO 14001 adoption. Although our results are valid only for the Japanese subsidiaries in Thailand, the in‐depth understanding of the motivations, benefits, and challenges of ISO 14001 adoption may contribute to the expanding literature about corporate environmental behavior toward sustainable development.

Emerging Partnerships of SDGs and HRM Practices During the Pandemic: A Study of the Indian IT Industry

Post-pandemic, the world of work has changed, and the pandemic has accelerated the responsible business agenda, representing a huge opportunity for the human-centric approach to HRM to transform the world of work. The drive towards responsible and sustainable business demands a new way of thinking, and the old conventional thinking approach addressing piece-meal solutions is an approach of the past. The human resource management (HRM) practices of multinational corporation (MNC) subsidiaries in India in the IT sector are studied within an institutional theory framework to look at how MNCs operating in India are incorporating the Sustainable Development Goals (SDGs). Applying the tenets of DiMaggio and Powell’s (1983) work, we understand that an MNC subsidiary located in India will be influenced by both potentially contradictory pulls from institutional factors in the local environment and international isomorphic processes. With a qualitative approach and primary data collected via in-depth interviews with 52 HR professionals (including host and subsidiaries) from 8 MNCs, our findings indicate that the subsidiaries based in India are mostly adopting the pattern exhibited by larger organizations in their environment that are viewed as successful (mimetic isomorphism) in implementing the SDGs. There is still a huge scope for improvement in these subsidiaries in terms of investing in people’s capabilities for future sustainable work. The research contributes to the bourgeoning literature on HRM practices and how MNC subsidiaries operate in different contexts and cultural settings in the IT sector.

Co-evolutionary dynamics and heterogeneity in corporate social responsibility: A case study on multinational corporation subsidiaries

This study aims to understand the heterogeneity of corporate social responsibility (CSR) approaches across subsidiaries of the same multinational corporations (MNCs) and determine the co-evolutionary dynamics that enhance the global cohesiveness of MNCs' CSR strategies and performance. The study draws on co-evolutionary theory and adopts an explanatory research design based on embedded multiple case study methodology. Semi-structured interviews with top management and employees responsible for CSR or related areas were conducted, and secondary data collection was done for triangulation and validation. The findings suggest that MNCs experience heterogeneity in their CSR, particularly in the implementation approaches, philanthropic and environmental CSR dimensions, and that MNCs with significant heterogeneity at the strategic level have less cohesive strategic CSR practices. The study also found that MNCs that encourage and facilitate active collaboration between subsidiaries have more cohesive and strategic CSR, and each MNC's CSR is driven by different co-evolutionary dynamics. The study contributes to the expansion of co-evolutionary theory to the study of CSR and offers a dynamic CSR co-evolution model explaining MNC CSR heterogeneity in real-world situations, along with potential levers to achieve more globally cohesive strategic CSR.

Achieving internal legitimacy and job satisfaction in UK and US multinational corporation subsidiaries in Nigeria: Do acculturation strategies matter?

The ever-increasing organizations’ quest for multinational investments despite cross-border tensions and cultural diversity in the international business environment necessitates acculturation research. This research aims to determine the nature of acculturation strategies adopted among local workers in UK and US MNCs’ subsidiaries in Nigeria and how the acculturation strategies relate to internal legitimacy and job satisfaction among the workers. Utilizing a quantitative research design, the study uses a structured questionnaire to draw data from 454 Nigerians working in UK and US multinational corporations’ subsidiaries in Nigeria. The research finds that Nigerian workers in UK and US MNCs’ subsidiaries in Nigeria predominantly adopt the integrated acculturation strategy. The study further finds that the integration strategy significantly results in internal legitimacy and job satisfaction among the local workers. Contrary to expectations, assimilation, separation, and marginalization acculturation strategies insignificantly relate to internal legitimacy and job satisfaction. We highlighted the acculturation strategy the UK and US MNC subsidiaries in Nigeria can use to achieve internal legitimacy and job satisfaction among local employees.

Evolution of Organizational Structure: A Case Study of a Multinational Corporation (MNC) Subsidiary in Poland

Evolution of Organizational Structure: A Case Study of a Multinational Corporation (MNC) Subsidiary in Poland

Assessing the risk of profit shifting among the suppliers to Danish municipalities

PurposeAn increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.Design/methodology/approachDrawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.FindingsThe PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.Social implicationsDanish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.Originality/valueThe PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

Differences in corporate social responsibility implementation between Slovak and Czech companies

In recent years, corporate social responsibility has emerged as a pivotal factor for corporations in cultivating a favorable public perception. Despite this, many companies remain uncertain about the integration and rationale behind incorporating it into their core business strategies. This study aims to discern dissimilarities in implementing corporate social responsibility initiatives between Slovak and Czech companies, addressing the triple bottom line framework. This approach is a metric for evaluating a company’s achievement across three dimensions: social, environmental, and economic. The study is predicated on a questionnaire survey conducted among a sample of 180 Slovak and 180 Czech companies operating as subsidiaries of multinational corporations as typical implementers of corporate social responsibility activities in emerging economies. Following the triple bottom line framework, three distinct sets of variables were formulated to account for social, environmental, and economic activities using the Mann-Whitney U Test to ascertain statistically significant disparities between Slovak and Czech companies. The findings indicate that the surveyed companies from monitored countries exhibited no notable distinctions in environmental endeavors. However, discrepancies were discerned in economic activities, specifically relating to post-sales or post-warranty customer services, which was significant with a small effect size (0.19). In social activities, significant differences were observed concerning adherence to the principle of equal opportunities in the workplace. Based on these outcomes, it is recommended that future investigations delve more extensively into the monitored parameters within the Visegrad countries. AcknowledgmentThe paper was prepared within the project “Etika v podnikaní na Slovensku” no. 01/2022/GA FEM SPU supported by Grant Agency – Faculty of Economics and Management – Slovak University of Agriculture in Nitra and internal grand of AMBIS college.

다국적 기업 현지 자회사의 ESG 경영이 경영성과에 미치는 영향

다국적 기업 현지 자회사의 ESG 경영이 경영성과에 미치는 영향

Sustainability performance of multinational companies in Malaysia

This study investigated the influence of market environment, cultural distance, government policy, and absorptive capacity on international intra-firm technology transfer and organizational sustainability performance among subsidiaries of foreign-based multinational corporations (MNCs) in Malaysia. Quantitative data was collected from randomly selected 252 MNC-Subsidiaries in Malaysia. Data analysis revealed that market environment, determined by market dynamism and competitors' intensity; cultural distance determined by national and organizational cultural distance; along with absorptive capacity, captured by the constructs of ability and motivation have a significant positive effect on intra-firm technology transfer. The study also revealed a significant positive influence of intra-firm technology transfer on organizational sustainability performance across the sample. Furthermore, the results showed a significant indirect effect of market environment, cultural distance, and absorptive capacity on sustainability performance through (mediation) intra-firm technology transfer. The results of this study could serve as a specific reference for policymakers of rapidly emerging economies in order to strengthen policies for a more dynamic, competitive, market and support their citizens to acquire relevant education, skills, and cultural awareness that would enhance technological inflows leading towards improved organizational sustainability.

Protectionism and its Impact on MNC Subsidiaries’ Performance

AbstractThis study investigates the relationship between local protectionism and performance of multinational corporation (MNC) subsidiaries in China. We integrate overarching theories (i.e., institutional theory and extended resource-based view) to investigate a model for identifying whether local protectionism at the subnational level is beneficial or detrimental for foreign subsidiary operations or functions as a double-edged sword. We also examine whether or not internal organizational capabilities and relational capital with government moderate the effects. On the basis of regression analyses, our empirical findings reveal that the positive or negative effects of subnational protectionism in China depend on performance types. Moreover, performance contribution is considerably moderated by various internal capabilities of MNC subsidiaries. Findings offer valuable and practical implications for MNCs intending to invest in emerging economies.

National context and the transfer of transgender diversity policy: An institutional theory perspective on multinational corporation subsidiaries in Pakistan

AbstractDeploying institutional theory to analyze the transfer of transgender diversity policy in Pakistan, our research highlights the crucial influence of national context with respect to the development and implementation of transgender‐supportive equality measures in multinational corporation subsidiaries. Based on semi‐structured interviews with 4 government officials, and 30 managers, HR leads, and diversity officers working in subsidiary organizations, our thematic analysis highlights how regulatory institutions, normative and cognitive institutions, and institutional distance inform the conditions of possibility for the transfer and execution of diversity policy across national boundaries. Moreover, by highlighting the inadequacy of etic understandings of diversity categories and practices in settings where social structures and ideologies can be different, we argue that utilizing an emic approach is essential in the global diversity field. Our research emphasizes the value of context‐sensitive research instead of generic, and universalistic, applications of ‘Western’ diversity understandings.

Role of Subsidiary Autonomy and Embeddedness in Subsidiary Knowledge Development: Emerging Economy Perspective

ABSTRACT: This study examines the factors contributing to developing subsidiary knowledge in Malaysian foreign subsidiaries. Prior research on subsidiaries in multinational corporations has either concentrated on transferring knowledge from headquarters to subsidiaries or vice versa, ignoring the factors associated with subsidiary knowledge development through embedded relationship factors. Although embedded relations are essential for developing knowledge, the direction is most important for developing subsidiary knowledge. The significance of subsidiary knowledge development, subsidiary autonomy, and external and internal embeddedness has been poorly illuminated by prior research. This is because the perception of knowledge development is emphasized from the headquarters' perspective, while the subsidiary functions as a passive recipient. Using the resource-based and network theories, we argue that subsidiary development depends on the subsidiary's autonomy practice and the level of engagement or network relations between external and internal network partners. Our research shows that subsidiary autonomy and external embeddedness are the most significant predictors of subsidiary knowledge development. Internal embeddedness in subsidiary knowledge development is inconsistent with the theoretical assumptions for subsidiary autonomy and external embeddedness. In regression analysis, the survey results of 170 foreign-owned subsidiaries in Malaysia validate our hypotheses. According to the results of this study, subsidiary autonomy and external and internal embeddedness are the most significant predictors of subsidiary knowledge development. This study's findings have implications for subsidiary administrators in developing nations and multinational corporations. While subsidiaries are developing their knowledge, multinationals need to consider how much autonomy to offer them in this process. When subsidiaries are able to make independent decisions, embedded relationships will increase, and knowledge will be more likely to develop. This specific knowledge eventually contributes to the knowledge base of the MNE.

More effective solutions? Senior managers and non‐routine problem solving

AbstractResearch SummarySolving non‐routine problems—problems for which current organizational, recurrent action patterns do not offer a predetermined, effective solution—can be an important source of value creation. When these problems occur in subsidiaries of multinational corporations, senior headquarters managers can potentially help solve them. However, whether their involvement is beneficial rests upon the assumptions that they know which knowledge is appropriate and that their involvement does not negatively influence the problem solving process. We challenge these assumptions and theorize that the involvement of senior headquarters managers is negatively related to solution effectiveness, unless senior subsidiary managers are also involved, and especially if problems have an external locus (i.e., primarily relate to the firm's products and services). Our robust results are consistent with our theory.Managerial SummaryCompanies are often faced with new problems, which represent an opportunity for organizational improvements. But how different types of senior managers influence problem solving effectiveness has remained unclear. Studying problems occurring in foreign subsidiaries of multinational corporations, we find that the involvement of senior headquarters managers is negatively related to problem solving effectiveness. Two reasons explain this result: senior headquarters managers often lack necessary understanding of their subsidiaries' contexts; and their involvement diminishes active participation of subsidiary employees. The negative relationship is especially strong when problems relate to products and services (as opposed to internal processes). Furthermore, we find that senior subsidiary managers can mitigate the negative consequences related to senior headquarters managers' involvement.

The Concept of State Owned Corporation Subsidiary Governance Incompatible With The Core Business

Company management based on Good Corporate Governance (GCG) principles is an effort to make GCG a rule and guideline for company managers in carrying out their business activities. Corporate governance is also an essential element of driving performance; many studies have proven that corporate governance affects the company’s performance. Implementing the principles of GCG in the management of the company is very important because it guides the company to make decisions appropriately and responsibly and the management of the company to be healthier, thereby increasing the company’s value. This study aimed to analyze corporate governance in Subsidiaries State owned subsidiaries that are incompatible with the core business by using normative juridical research methods, with the data source being secondary data obtained by library research. In secondary data used primary legal material in the form of statutory regulations, secondary legal material in the form of literature related to this research. Based on the research results, the concept of governance of Subsidiaries State owned subsidiaries that do not suit the core business, in general, has not been going well due to the establishment of a subsidiary to pursue profit. If the Good Corporate Governance mechanism does not function properly in the company, this can reduce the company’s value and lead to poor company performance and even loss. If the principles of Good Corporate Governance are appropriately implemented in subsidiaries that do not suit the core business.

Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control

Offshoring can increase firms' exposure to product quality risks, such that manufacturing firms need effective tactics to maintain product quality consistency across offshoring subsidiaries. With an agency theory approach, the present study seeks novel insights into three widely used subsidiary control mechanisms for achieving product quality consistency across offshoring subsidiaries in emerging markets and developed home countries. Through surveys of 150 subsidiaries of multinational corporations in heavy industries operating in China, the paper tests a proposed model using hierarchical linear regression, accounting for endogeneity concerns using the Gaussian copula method. The analysis yielded several findings: An inverted U-shaped relationship exists between decision autonomy and product quality consistency; expatriate staffing positively predicts product quality consistency and attenuates the negative effects of excessive autonomy on product quality consistency; and compared with greenfield entry, mergers and acquisitions negatively predict product quality consistency.

해외직접투자가 경제성장에 미치는 영향

Purpose – The purpose of this study is to shed new light on the impacts of FDI by multinational corporations on the economic growth of the host country. Design/Methodology/Approach – This study compares and analyzes the different impacts of existing FDI inflows and local added value creation of multinational corporations on the per capita national income of the host country. In addition, this study conducted a fixed-effects panel model analysis on a sample of 42 countries from 2005 to 2016 of the OECD's Analytical AMNE database. Findings – First, as a result of panel analysis of a fixed-effect model that controlled for the effects of individual countries and major macroeconomic and policy variables, the share of local value-added creation of subsidiaries of multinational corporations had a significant positive impact on the growth of per capita income in each country, but the share of FDI inflows did not have a statistically significant impact on the growth of per capita national income. Second, the results of analysis by dividing the sample into developed and developing countries also confirmed that the share of local value-added creation of subsidiaries of multinational corporations has a positive effect on economic growth in both developed and developing countries. In addition, the impact of FDI on economic growth is greater in developing countries than in developed countries. On the other hand, the share of FDI inflows had a positive effect on the economic growth of developing countries, but had no significant effect on the economic growth of developed countries. Research Implications – In identifying the relationship between FDI and national economic growth, it was confirmed that the use of the OECD's Analytical AMNE statistics is more appropriate than traditional FDI data.

Foreign Direct Investment in Greece after the Exit from Memorandum

Foreign direct investment is considered one of the most favorable sources of private investment as it creates jobs, boosts production capacity, facilitates the access of local businesses to new international markets and thus allows the transfer of technology that can bring positive long-term results. According to the literature, many researchers converge on the fact that subsidiaries of transnational corporations operate more efficiently than domestic corporations, as they often have higher labor productivity, better skills, a greater emphasis on research and development, and more investments. The purpose of this paper is to examine foreign direct investment in Greece after the exit from memorandum. Although it is still relatively early, we are trying to investigate whether the exit from memorandum contributed to attracting foreign direct investment. The characteristics of these foreign direct investments are also examined.