European Multinational Companies Research Articles

Trade union cross‐border alliances within MNCs: disentangling union dynamics at the local, national and international levels

ABSTRACTThis study identifies three types of workplace union strategy in the development of cross‐border relations within North American and European multinational companies: defensive isolation, risk reduction and proactive solidarity. Qualitative case studies of MNCs with operations in Canada and Mexico indicate that the nature and intensity of participation in cross‐border trade union alliances are shaped by the union dynamic at the local, national and international levels. A combination of greater workplace union power resources, notably discursive capacity, and of strong supportive approach of the national union, notably dedicated resources and space for bottom‐up initiatives, contributes to proactive solidarity strategies towards international union networks. The absence of these factors is associated with risk reduction and defensive isolation strategies.

Contexto, concepto y dilemas de la responsabilidad social de las empresas transnacionales europeas: una aproximación sociológica

This study addresses the hypothesis that the increasing importance of corporate social responsibility, and its incorporation into European multinational companies, is a true reflection of some of the most important features of present day social, economic and cultural life. The spread of this phenomenon is studied in the context of globalization, makes reference to its multi-scalar, multi-directional and multi-dimensional structure, and also considers its relationship to the increasing importance multinational companies attach to reputation risk management and corporate image. Below we focus on how this is conceptualized by making a distinction between three different types of responsibility and its relation to four dilemmas; should it be obligatory or voluntary, unilateral or multilateral, applied universally or relatively, or just limited to complying with current law. In addition, other philanthropic or social aspects of the company and its consideration as a regulatory plus are addressed. In line with this array of definitions, different outlooks are presented regarding the risks and opportunities of this new social tool.

Contribution on the analysis of the environmental disclosure: a comparative study of American and European multinationals

PurposeThis research aims to compare the environmental information that is disclosed in the annual reports of the American and European multinational companies. Eventually, it also aims to try to show the factors which explain the differences.Design/methodology/approachThis paper analyzes the annual reports of 72 multinational companies, thanks to the index developed by Wiseman. The paper then uses regression analysis in order to explain the differences.FindingsThe study finds that European multinationals reveal more environmental information than those that are American. Equally, it finds that the nationality of multinational companies seems to have an effect on the level of environmental communication.Research limitations/implicationsThe quantitative data are based on a small sample of multinational companies. However, findings will bring efficient contributions to the other studies dealing with the accounting harmonization.Originality/valueThe study aims at enriching the debates on this question, comparing the environmental information (obligatory and voluntary) showed by the annual reports of the American and European multinational companies.

The Biggest Polish and Ukrainian Enterprises - Globalization or Market Concentration? Comparasion to the Biggest World and European Multinational Companies

The paper objective is to compare the biggest Polish and Ukrainian companies on the light of globalization and concentration. The questions which will be answered on the research is what are the biggest enterprises of both countries, what sector of the economy they are represent and finally what is the main reason of the size of the enterprises. The result will be compared to the biggest companies in the world and Europe. The methodology which will be used in the research is based on revenues as a classical indicator of the company size and type of production/service the company is working in. The results could help answer if the Polish and Ukrainian companies are similar to world and European’s one. In the first part of paper the basic theory of globalization and role of multinational companies will be presented. The second part shows data becomes form companies and comparisons. The last chapter is a summary which describes basic conclusions.

A study on intellectual capital disclosure determinants in the European context

The difference between the book value of the company and the market value, which is constantly increasing, motivates many researchers to identify the missing information from financial statements. This accounting incapacity shows that the human and organisational factors replace technical and industrial capital. Consequently, European multinational companies are developing disclosure strategies about intellectual capital. The central question of this paper is on this observation: what motivates European companies to communicate on intellectual capital components which exceed or complete accounting disclosure? A multivariate regression analysis tests the link between the intellectual capital disclosure and firm's characteristics. The study's results show that size, intangible contributions in the balance sheet, indebtedness, performance, multinationality, sector and the auditor type appear to influence the intellectual capital disclosure in a significant manner. This research sets up indicators used in formulating the communication norms.

The Lack of Relevance of Management Accounting for Strategic Organizational Decisions - The Case of Offshoring in European Multinational Companies

The involvement of management accounting in strategic decision and coordination activities remains a controversial issue in the literature. Our objective was to prove the relevance or irrelevance of management accounting by analyzing the degree of input in the context of a typical strategic decision. We conducted an empirical investigation of offshoring by means of 17 semi-structured interviews with managers and accountants from 14 multinational enterprises. We analyzed the role of management accounting in different phases of offshoring, drawing attention to the nature and level of participation in both the pre-decision period and in ongoing activities. We use the resource-based view and inter-organization literature to classify offshoring. Offshoring aims at gaining competitive advantage through cost reduction and access to large numbers of qualified employees in low-wage countries. It can be described as an innovative inter-organizational business practice which is subject to uncertainty and complexity. Therefore, offshoring possesses various characteristics that typically require information and decision support from management accounting. However, the case studies provided evidence that management accounting is involved in offshoring to a much lower extent than expected. The reasons range from contractual agreements between the different parties, which substitute in part for management accounting interventions, to competence problems in accounting departments. Furthermore, management accounting often fails to provide strategic planning and coordination instruments. Thus, different departments either try to implement the offshoring strategy themselves or with the support of external consultants. This is independent of the business model and applies both to offshore-outsourcing and to offshore subsidiaries. In some cases, the specific requirements of offshoring projects lead to a direct monitoring of the correspondent departments without the participation of management accounting. However, communication problems, such as misinterpretations and a lack of feedback as well as hidden transaction costs indicate an increased need for coordinated information processing.

European and Japanese Multinational Companies in China: Organization and Control of Subsidiaries

The control of their subsidiaries by multinational companies (MNCs) is regarded in academic literature as a multidimensional process. Specificities of Japanese, as compared to American and European, management practices have quite often been emphasized, including in the field of international management. On the basis of a large-scale survey, this contribution investigates the organization and control of subsidiaries in China by Japanese and European MNCs. Only a small number of significant differences appear, regarding mainly expatriation policies and training of local staff. Such differences seem to be mainly related to geography (Japan being close to China, while Europe is not) and to the delocalization strategies of Japanese MNCs over the last 10 years; and less so to cultural differences, as is often suggested.

Cross-Border Linkages in Research and Development: Evidence from 22 US, Asian and European MNCs

This paper shows the steady internationalization of R&D activities and the expansion of cross-border linkages in R&D in 22 US, European, Japanese and Korean electric-electronic multinational companies (MNCs). In contrast to previous studies that have emphasized input factors to measure the internationalization of R&D, this study focuses on output measures, namely, the roles played by overseas R&D facilities of MNCs in US patenting activities and the publication of scientific papers. Using these measures, this study demonstrates that globalization and networking of R&D activities by these MNCs have progressed both in terms of basic and industrial applications.

The globalisation of research in the pharmaceutical industry: A case of uneven development

The paper discusses different conceptualisations of the term globalisation of research. From this discussion five dimensions of globalisation of research are identified. Using three different type of data, the paper goes on to examine the extent, motivations and mechanism for the globalisation of research along these five dimensions among leading European and US pharmaceutical multinational companies (MNCs). The evidence for the period 1975–1998 shows that the general process of international expansion of research activities varied significantly between leading US and European MNCs. It is also clear that the development of the process of globalisation has proceeded unevenly along the five dimensions studied. The data also show the increasing concentration of both US and European research investment in the USA.

Company Tax Reform in the European Union

The European Commission recently proposed to move towards a consolidated tax base for European multinational companies, to be allocated across EU member states through a system of formula apportionment. This paper argues that while the Commission's four al- ternative blueprints for company tax reform may reduce existing problems of transfer pricing, they will also create new distortions as long as existing tax rate differentials are maintained. The paper also analyzes the changes in international tax spillovers which will occur as a result of a switch from the current system of separate accounting to formula apportionment. The final part of the paper discusses whether more conventional corporate tax harmonization should still be a long term policy goal for the EU and presents quantitative estimates of the efficiency gains from harmonization.

Multinational firms’ location preference for regional distribution centers: focus on the Northeast Asian region

This paper has three main objectives: (a) to identify the major factors that multinational companies (MNCs) consider important when they decide the locations of their regional distribution centers, and (b) to understand how European and North American MNCs assess Korean cities (Seoul/Incheon; Busan/Kwangyang) as potential location for their Northeast Asian distribution centers via-a-vis competing Northeast Asian cities (Tokyo/Yokohama, Osaka/Kobe, Shanghai, Beijing/Tianjin, Taipei), and (c) to identify the gaps for Korean government must fill in order to attract MNCs’ distribution centers to Korea in order to achieve its pronounced goal of building a successful regional logistics hub. These objectives have been accomplished in this paper by employing three complementary methods: a careful review and summary of relevant literatures, a structured questionnaire-based survey of MNCs’ distribution managers, and personal interviews with MNCs senior executives and governments officials.

Global New Product Development Processes: Preliminary Findings and Research Propositions

This study examines the processes and routines firms employ for developing new global products. Observations from 13 Japanese, American and European multinational companies reveal that global new product development processes vary in terms of the involvement of overseas subsidiaries in project teams and the generation of new product concepts. In particular, when the knowledge about different product design requirements among overseas markets or plants is tacit, firms employ cross‐national product development teams and use overseas subsidiaries as sources of new product concepts. Anchoring these findings on information processing theory, we develop a set of research propositions on global new product development processes and suggest directions for future research.

Patterns and determinants of global marketing

This paper discusses the patterns and determinants of global marketing, based on a contingency framework of industry globalization drivers, company position and strategy, organizational factors, and parent company characteristics. These patterns and determinants are examined in a sample of 64 businesses belonging to very large American, European and Japanese multinational companies. The study finds that these businesses mostly use global branding and global packaging but make much less use of global uniformity in other elements of the marketing mix. Several factors, including nationality, explain the use of global marketing.

Managing Flexibility in the Food Industry: A Cross-National Comparative Case Study in European Multinational Companies

Multinational companies are often seen as (potential) agencies for disseminating similar employment practices across countries and hence encouraging industrial relations convergence. The relationship between centre and periphery helps determine the extent to which they perform this role. This article reports findings from research in the Spanish and British subsidiaries of a multinational, which indicate that, despite the considerable formal autonomy of local management, there were many indirect methods by which the head office could ensure conformity with common industrial relations policies.

Meetings on European multinationals: the experience so far

This article looks at the experience to date of meetings on European multinational companies, precursors to European works councils, using information from the main organisers, the European Industry Committees, and the participants. It finds that: there are now at least 290 European multinationals where employee representatives have met to talk about the prospect of a European works council. Overwhelmingly it is the national unions who decide who participates in the European level meetings and that, while non-UK unions draw on the statutory representative structures, such as works councils, to select their participants, in the UK the situation is more fluid. Overall around two-thirds of those attending are lay representatives. There are three issues which most meetings cover: the financial structure and plans of the company; a comparison of working conditions and trade union representation in the company's European locations; and the prospects of establishing a European works council. The meetings are about both exchanging information and building a European Works Council, although some Industry Committees focus more clearly on establishing a European Works Council than others. Participants report progress towards works councils, although they also welcome the links made and information shared at meetings. There are difficulties in maintaining links outside the meetings. The biggest single problem is language; people cannot communicate outside the formal sessions. There is also a general feeling among participants that they would like more information and among the organisers that they would like more resources. The key training needs are identified as language training followed by more training on the industrial relations systems in other countries.

Apprentissage organisationnel et ensemble régulatoire. Le cas des comités de groupe européen

This paper analyses the codification process of the right of access to information for workers in European multinational companies (EMC). It is a twofold process characterized by the collective learning by the «field actors » within group committees created in some EMC and the setting-up of a legal basis valid at the European Community level. These two movements contribute to the emergence of a complex regulatory set which associates various actors (representatives of employees, of employers, of States) at various levels (local, national, European), and various regulatory modes (legislative, negotiatory). The implementation of such a process seems to be the very condition of a renewal of European social regulation.

Not good enough for us but fit for them — An examination of the chemical and pharmaceutical export trades

The paper provides ample evidence that major European pharmaceutical and chemical multinational companies are engaged in trading hazardous products to third world countries. In the manufacturer's country, these drugs and pesticides are usually banned or at least severely restricted in their use. EEC foreign trade policy has been founded in liberalism, neglecting the dangers which these products impose upon third world countries. Industry and host countries, including the EEC, have an obligation to ensure that an equitable system of production and marketing be developed — one which will benefit both the exporting and importing countries and their citizens.

Asbestos and health in the Third World: the case of Brazil.

Almost all of the asbestos used in Brazil is mined by an enterprise wholly owned by two European multinational companies, which also produce and market over two-thirds (by weight of asbestos) of the products made from asbestos. About 80 percent of the asbestos used in Brazil is finally consumed in the form of asbestos cement: for roof tiles and roofing panels, wall-board, and domestic and industrial water tanks. A survey of consumer literature and advertising printed by Eternit, S.A., and Brasilit, S.A., disclosed no mention of a potential danger from exposure to asbestos dust, and no recommendations for cutting down exposure to that dust. The situation at smaller, Brazilian-owned firms is reputed to be disastrous from the standpoint of workers' exposure to asbestos dust at the point of production. At a large asbestos-cement manufacturing plant owned by Eternit, however, exposure to asbestos dust (according to company records) seemed to be kept under 2.0 fibers per cc., the present standard for the United States.

European Multinational Companies in Australia and the Exportation of Languages

<i>European Multinational Companies in Australia and the Exportation of Languages</i>