Foreign Enterprises Research Articles

Development of a Mechanism for Preventing Bankruptcy of Enterprises at the Regional and National Level

The paper develops a mechanism for preventing bankruptcy of enterprises at the regional level, which allows management to make managerial decisions on time that will effectively assess the threat of bankruptcy and anticipate it in advance. The developed research mechanism includes 3 main stages: formation of the feature space; enterprise`s bankruptcy probability assessment; forecasting the state of the enterprise. One proved that every year most Ukrainian enterprises have insignificant incomes and receive huge losses, as a result an unemployment is growing in the country. Quarantine restrictions related to the COVID–19 pandemics have made a significant negative contribution to the activities of both domestic and foreign enterprises. The object of the study was an international tobacco company whose activities goes in the Kharkiv region. Thus, the analysis of the financial condition showed that the enterprise investigated is not yet in danger of bankruptcy, since it is in a stable financial condition. In addition, the company has high indicators of liquidity and solvency. That is why the paper proposes to consider the mechanism for preventing bankruptcy of enterprises on the example of an international tobacco company. Thus, as a result of the development of the bankruptcy prevention mechanism, it became possible to form the basis of models that will be adapted to domestic enterprises, which will allow identifying the threat of bankruptcy and preventing bankruptcy at an early stage, thereby increasing the number of financially healthy enterprises and economic growth in the regions.

Governance of local government and foreign direct investment - A study for Lam Dong province

A foreign enterprise's decision with respect to investing in a certain locality dramatically depends on factors that can help the enterprise increase profits and grow. One of the existing factors that cannot be ignored is the ``hand'' of state agencies. This paper sheds light on the impact of governance on foreign direct investment activities in the locality. The study deploys the quantitative method through a questionnaire survey to all foreign-invested enterprises in Lam Dong province. Regression analysis results from 54 opinions of business managers indicate that governance activities have an important influence on the investment of enterprises. These positive effects are attributed to two main factors called ``conditions on government apparatus'' and ``conditions on civil servants''. These factors comprise respectively transparency, the quality of administrative procedures, intervention from policy stability, the quality of civil servants, accountability, and political will of the entire local government system. This study supports the ``tectonic'' thinking of state agencies in managing foreign investment activities. With this result, the study not only contributes an important part to the theory of foreign direct investment in developing countries with the role of local tectonic government but also offers practical value in terms of promoting governments to regulate governance manners to achieve optimal efficiency.

Determining Factors for Educating Students for Choosing to Work for Foreign Units: Absence of Self-Efficacy

Educating our students in developing countries such as Vietnam is becoming necessary. So first of all, this study aims to identify factors that impact on students’ decision to work for a foreign company for those who are studying in the field of social sciences and humanities. Based on 508 responses, the results from linear regression analysis shows that Self-Interests, Self-Outcome Expectations (internal factors), University’s Gains, and References (external factors) were factors that affect student workplace choice. Meanwhile, the factor of capacity (“Self-efficacy”) to perform the task (“Working environment”) has no statistical relationship. This result suggests for educational managers, business managers in general and foreign enterprises in particular to coordinate vocational education for students.

A Study on the Influence of the Host Country’s Legal System on the Performance of Chinese Enterprises’ Foreign Direct Investment Empirical analysis based on micro data of Chinese listed companies

In recent years, while the direct investment of Chinese enterprises has made rapid progress in foreign direct investment, it has also shown a trend of “blindness” and “irrationality”, which has brought huge overseas investment risks. The reason is largely due to foreign investment enterprises ignore the host country’s legal system. This paper uses 82 foreign direct investment data of Chinese listed companies in 30 countries (regions) from 2010 to 2019 as a research sample to analyze the impact of the host country’s legal system on the performance of Chinese companies’ foreign direct investment. The results show that the performance of Chinese enterprises’ investment in the country has gradually improved with the improvement of the economic development level of the host country, the soundness of the legal system of the host country has been continuously improved. The restraining effect of the soundness of the host country’s legal system on investment performance is more obvious in state-owned enterprises and investments involving sensitive industries or key areas. In addition, the performance of investment enterprises will gradually improve with the increase in the density of labor unions and the international investment experience of enterprises.

Design and analysis of a certain type of engineering environmental management information system

A certain type of engineering environmental management information system (referred to as the system) has been developed for many years, but there are not many construction cases. Domestic and foreign companies and enterprises have little research on this type of engineering system construction plan, and the knowledge base of historical experience and lessons is less. The design analysis of the engineering system construction scheme has practical significance and value. The system construction design adopts large-scale joint control technology to integrate all environmental protection subsystems into an organic whole, realize information sharing and collaborative work, realize remote monitoring and control of process equipment, and realize dynamic and online management of equipment information. Eventually, a certain type of engineering achieve the goals of intelligent control, unmanned duty, and controllable operation.

Worker’s material and mental life in sustainable development of industrial zones

Since the implementation of the market economy, innovation and international integration, with the correct guidelines and policies of the Communist Party and the State, Vietnam has rapidly developed industrial parks, attracting a large number of foreign and domestic enterprises came to operate in industrial zones. Having a large number of employees, enterprises operating in industrial zones must pay attention to working conditions and other issues for workers. One of the most important issues of concern is the material and mental life of workers. A sufficient material life when ones’ needs for food, accommodation, clothes, etc. are satisfied allows workers to survive and regenerate their energy for work. A healthy mental life ensures brings positive mood, motivation, attitude and effective working behaviors. Inadequate material and mental life reduces workers’ productivity and thus influences firms’ growth. Ensuring material and mental life for workers in industrial zones is a prerequisite in boosting productivity and achieving sustainable development. This study use survey and interview data to examine the quality of material and mental life of workers in industrial zones in Vietnam. Low income was the main hindrance to a sufficient material life and a rich mental life of workers. In addition, low quality of meal and working conditions had significant impacts to their health. The results were discussed in relation to previous studies on the life of workers in industrial parks.

Export of foreign enterprises and quality of domestic enterprises’ export products

Based on the matching data of industrial enterprise database and customs database, this paper investigates the impact of foreign enterprises' export on the quality of domestic enterprises' export products from the perspective of industrial association. The results show that: (1) the export of foreign-funded enterprises can significantly promote the export product quality of domestic enterprises through the horizontal spillover of the same industry and the vertical spillover of inter industry correlation. (2) after further distinguishing domestic enterprises with different ownership and industrial technology levels, it is found that the export of foreign-funded enterprises has a more significant promotion effect on domestic enterprises in private and low-tech industries. Therefore, how to better identify and utilize the export spillover effect of foreign-funded enterprises is of far-reaching significance to promote the quality upgrading of domestic enterprises' export products.

RETRACTED: Heterogeneity perspective effect of environmental regulation on enterprise export products switching: Evidence from Chinese firm-level data

Under the constraint of enterprise heterogeneity, environmental regulation will affect the re-allocation of resources among products. Appropriate product switching can make China’s export trade powerful, promote the high-quality development of export trade, and realize the win-win situation between environmental protection and export trade. Based on the related theories of environmental economics and international trade, this paper uses the matching data of China’s industrial enterprises and customs import and export trade in 2000–2013, then uses the fixed-effects model to test a total of 410,326 samples of 114,897 enterprises. We empirically analyzed the impact of environmental regulations on the export products switching from the perspective of heterogeneity. We found that: the intensity of environmental regulations is positively correlated with the total switching rate of export products, the increase rate of export products and the export product obsolescence rate. Environmental regulations have a greater impact on the export products switching of general trade enterprises than on processing trade; the impact on private and foreign enterprises is greater than that on state-owned enterprises; the impact on high-tech enterprises is greater that than on low and medium-tech enterprises; through theoretical analysis and empirical test, this paper reveals the mechanism and its promotion effect of environmental regulations on the export products switching of heterogeneous Chinese enterprises, which provides theoretical and practical support for the enhancement of China’s export products international competitiveness and environmental improvement.

Situational management of human resources as a basis for ensuring the economic security of the enterprise

Introduction. The development of human resource management of the enterprise becomes especially relevant during the pandemic. The acute problem facing HRs across the country requires a comprehensive solution in the process of ensuring the economic security of the enterprise. The main driving force at the enterprise is personnel. Therefore, to effectively ensure the economic security of the enterprise it is necessary to apply situational management of human resources. Adaptation to change should be considered as an opportunity for rapid application of all long-term experience. The purpose of the paper is to study the situational management of human resource in the process of ensuring the economic security of the enterprise. Results. The paper presents the approaches of domestic and foreign scientists to situational management. The authors have developed a model for managing the human resources of the enterprise. An example of personnel management of leading foreign enterprises is given. The author’s vision of solving the problem of human resources management of the enterprise is presented. Conclusions. The generalization of scientific achievements in situational management of domestic and foreign researchers is given. For a better understanding of management in solving the problems of situational management, the authors present knowledge management tools. It is important to promote self-education, self-organization, learn to manage managers first, foremost, be flexible to exogenous, endogenous factors influencing the development of the enterprise. The authors propose a model of human resources management as a basis for ensuring the economic security of the enterprise. This model will provide a clearer idea for managers and HRs about personnel management in terms of situational adaptability. It differs from existing models in its focus on anthropocentrism. Every good successful leader must become a perfect HR.

IN A MODERN BUSINESS STRUCTURE, A RISK MANAGEMENT SERVICE IS PREFERRED

If we could identify a business risk in advance and solve it easily, business would probably lose its main charm. Risk is one of the essential components of business. Only proper identification of risks, their measurement - evaluation and selection of an effective method of reduction are not enough to improve risk management; It is necessary to develop an optimal organizational structure, develop an organizational culture and properly manage the risk management control process. In developed countries, almost all large and medium-sized organizations have a special link in the management system. "Risk Management Center", (Corporate governance) which helps accountable entities assess risks, develop and implement manipulation measures. The researches have proved that in some cases it is still strange to the Georgian business reality to take measures to evaluate risks and ways of their solution, which in some cases raises problems that lead to crucial results. Bankruptcy of foreign enterprises is not strange for the Georgian market, because in most cases they are unprepared to take risks and fail to take measures to solve them. Possible risks should be identified at an early stage of business formation to avoid unintended consequences. Modern tendencies show that it is desirable for companies to have a risk management service whose function will be to identify the expected risks, evaluate and offer anti-risk measures to managers. It is such companies that will show fewer losses from crisis.

Digital transformation of underground mining flow processes: post-event analysis and world’s experience

Introduction. The article presents the stages of underground mining transfer from mechanization to automation of basic production processes. Experience of applying various automation levels in local and foreign enterprises has been considered in details. Methodology. The advantages and disadvantages of introducing the digital technologies have been analyzed at almost 30 mines and shafts with underground and integrated methods of mining. Results. It has been determined that in the present time, semiautomatic and autonomous control over particular production processes has become a frequent practice. Main advantages revealed in the course of field trials consist in the ability to operate in inter-shift breaks, in gassy environment, and in higher speed of equipment travel which has made it possible to significantly improve performance. In many mines the staff has been reduced down to 80%, maintenance capital has been reduced down to 60%, performance improved up to 30%, operating costs reduced down to 25%, and service time improved up to 45%. The effect of harmful and hazardous factors on the personnel has significantly reduced due to their occupation mainly in the surface of the mine. Summary. Significant improvement in the efficiency of operation is due to the integrated digitalization and autonomous operation of the whole enterprise which has a single center of information accumulation, data analysis and the flow processes control. It takes time to create an autonomous “digital enterprise” as well as step by step transfer of all production processes in the autonomous operating mode.

Corporate culture as a driver of the corporate security of foreign military-industrial enterprises

Subject. The military-industrial complex is one of the core industries in any economy. It ensures both the economic and global security of the State. However, the economic security of MIC enterprises strongly depends on the State and other stakeholders. Objectives. We examine key factors of corporate culture in terms of theoretical and practical aspects. The article identifies the best implementation of corporate culture that has a positive effect on the corporate security in the MIC of the USA, the United Kingdom, the European Union, Japan ans China. Methods. The study employs dialectical method of research, combines the historical and logic unity, structural analysis, traditional techniques of economic analysis and synthesis. Results. We performed the comparative analysis of corporate culture models and examined how they are used by the MIC corporations with respect to international distinctions. Conclusions and Relevance. The State is the main stakeholder of the MIC corporations, since it acts as the core customer represented by the military department. It regulates and controls operations. The State is often a major shareholder of such corporations. Employees are also important stakeholders. Hence, trying to satisfy stakeholders' needs by developing the corporate culture, corporations mitigate their key risks and enhance their corporate security.

Foreign partnership in Indian higher education: significance, challenges and concerns

ABSTRACT India, as a developing nation, is consistently progressing in the education field. While Indian higher education has expanded tremendously in terms of enrolment, the country has failed to produce an adequate number of world-class universities. Researchers have analysed challenges like demand-supply gap, lack of quality research and innovation, inadequate infrastructure, shortage of quality faculty, etc. Worldwide higher education policies have been transformed by various internationalisation processes that operate in a constant flux of globalisation. Given the projected demand for massification and quality improvements needed, internationalisation of higher education has become an important national goal in India. This paper conceptualises the importance of foreign partnerships in the Indian higher education sector. It delineates major challenges for the foreign enterprises to enter the Indian higher education market and highlights some recent developments on policy initiatives and schemes initiated by the Indian government to bring higher education at par with international standards. Specific hindrances of foreign partnerships in the higher education sector have also been discussed. In conclusion, this paper critically argues for formulating useful regulatory guidelines for foreign partnerships by fostering research on understanding the policy and management of the Indian higher education system.

The Formation and Diffusion Mechanism of Financial Risks in Marine Enterprises

Qiu, J., 2020. The formation and diffusion mechanism of financial risks in marine enterprises. In: Li, L. and Huang, X. (eds.), Sustainable Development in Coastal Regions: A Perspective of Environment, Economy, and Technology. Journal of Coastal Research, Special Issue No. 112, pp. 165-167. Coconut Creek (Florida), ISSN 0749-0208.With the deep implementation of marine resources development in various countries, more and more marine enterprises have invested in market-oriented competition, which makes them face more and more severe competition and diversified risks, especially financial risk has become an important factor restricting the healthy development of marine enterprises. Under this background, this paper first studies the connotation and prediction basis of financial risk of foreign enterprises, then analyzes the causes of the formation and diffusion of financial risk of marine enterprises, and finally gives the control strategies and measures for the formation and diffusion of financial risk of offshore enterprises.

Workers Industrial Relations Response Course in Chinese Enterprises: Racialization Question at Industrial Parks in Tanzania

(Foreign Direct Investments) FDIs plays great role on promoting economic development of both the host country and place of their origin. Tanzania’s recent move of industrialization witnesses a huge influx of Chinese foreign direct investments in special economic zones and industrial parks. With the increase of FDIs and industrial parks, cheap migrant laborers are of great importance to the development of these factories in industrial zones.Spending half a year in different Chinese enterprises and local owned companies in Tanzania, a field study was conducted on Chinese -Tanzanian labor racialization at Mkuranga industrial park in Tanzania. The analysis in this article is based on labor racialization at Mkuranga industrial zone where life course migration of workers, interactions in the workplace and Chinese workers interaction with surrounding environment.The study found that, while foreign enterprises improved livelihoods of migrant and local society at the park, there is racialization from both sides and is being fueled by total cultural misunderstanding. Keywords: migrant workers, Chinese enterprises, racialization, Tanzania. DOI: 10.7176/DCS/10-11-08 Publication date: November 30 th 2020

Social Responsibility of Business: Practical Aspect in the Conditions of Bifurcation

The article deals with an actual issue of industrial enterprises’ economical activity – corporate social responsibility – basics of the national economy’s constant development. Continuation of European integration processes and domestic enterprises’ access to the international market have caused a tendency of gradual transfer of responsibility for solving social problems from state to business subjects. It has been proven that the business’ social responsibility in modern crisis conditions is an economic activity that is oriented to satisfaction of not only own, but social needs. The research focused on practices of domestic enterprises’ social responsibility, the main of which are implementation of improving the labor conditions policy, charity, and help to JFO soldiers. We defined the main incentives and motives of corporate social responsibility implementation in Ukrainian enterprises, the most specific value of which have moral considerations, desire for a company’s reputation improvement, and increase of the personnel’s loyalty. The author generalized the indicators of the business’ corporate social responsibility effectiveness estimation from the point of view of the enterprise’s activity aspects characterization, mostly used in international practice. We researched the ways of the international leading companies’ social responsibility by the version of Reputation Institute (RI), the world leader in reputational audit and consulting, the main focus of which is on environment protection programs, the use of ecological and natural raw materials, implementation of charity programs, and social projects. When comparing activity of Ukrainian and foreign enterprises in the sphere of social responsibility, it was determined that activities of the last mentioned are more directed to the problems of the inner environment: improvement of labor conditions, increase of the personnel’s health level. It is shown in modern crisis conditions, with the whole world in such conditions, that corporate social responsibility is approved as a necessary condition of the business’ continuity and is demonstrated with the companies’ initiations in help to hospitals, healthcare, safety of the personnel and their families, and support of socially-vulnerable groups. We have analyzed the ways to help in the fight against COVID-19 by the leading companies of Ukraine and the world and justified the main reasons of the business’ corporate social responsibility implementation necessity in the activity of domestic enterprises. JEL classіfіcatіon: М14 Manuscript received 27.04.2020

Legal Entrepreneurship and the Strategic Virtues of Legal Uncertainty

The field of law and strategy (LAS) has advanced our understanding of the law's role in competitive advantage. To date, however, LAS has neglected low rule of law environments—countries characterized by expansive degrees of legal uncertainty. LAS should account for these settings, too, since environmental uncertainty is a strategically significant factor for any company. This article situates the strategic relevance of legal uncertainty in the Chinese context and fills an important gap by illustrating how LAS principles apply in low rule of law jurisdictions. Specifically, this article develops the construct of legal entrepreneurship—the notion that attorneys may apply an entrepreneurial mind‐set and skill set to position the client favorably and legitimately within the uncertainties of the legal landscape, thereby creating legal competitive advantages for the client. Drawing upon interviews with expert attorneys and executives, this article presents a typology of legal strategies available to U.S. companies in China, uniquely modeling these approaches along the two fundamental dimensions of legal strategy. Additionally, this article identifies two basic types of legal uncertainty in the cross‐border context and offers guidelines for the exercise of legal entrepreneurship. Together, these arguments demonstrate that legal entrepreneurship is an empirically viable construct within the LAS project. In low rule of law jurisdictions that have embraced foreign enterprise, legal entrepreneurship will generally optimize the American company's pursuit of both legal value creation and legal risk management.

The Importance of Implementing Digitalization in Kazakhstan

Goals and objectives of the research – The goal of the article is to analyze the international experience in implementing digitalization, both in the private and public sectors of the economy. The objectives of the article are the analysis of the digitalization implementation algorithm in foreign enterprises and the adaptation of this algorithm for most Kazakhstani entrepreneurs, taking into account the specifics of doing business in Kazakhstan. Investigation of logical chain, which introduces digitalization in large world companies. It begins from the first department that has undergone digitalization to obtaining the final result from the process for the company. 
 Methodology – To solve the tasks set in the article we used system, logical, comparative-analytical methods. The provisions and conclusions are illustrated by statistical data presented in tables, diagrams, diagrams, accompanied by references to scientific literature and legal acts.
 Results/Findings – The conclusion is made about the importance of implementing digitalization in business, regardless of the size of the enterprise itself. The examples of digitalization implementation in foreign companies are analyzed. Based on the analysis of foreign experience, an algorithm for the introduction of digitalization for most businesses in Kazakhstan has been compiled.
 Novelty/Originality/Value – there are several factors that allow increasing digital technologies in all areas of industry in Kazakhstan. Digital technologies provide an incentive for the development of new areas in SMEs. This fact pushes to review legislation of the country and develop a transit direction in trade.
 Theoretical or Practical Implications – The digitalization implementation algorithms discussed in the article in foreign companies and the algorithm for domestic entrepreneurs can be used both to improve business strategies by company leaders and government agencies in Kazakhstan to create an internal development program and encourage the introduction of new technologies and digitalization in state enterprises.

Internal control management in russian and foreign enterprises: paradigm and approach

Purpose. The complication of the competitive situation in the context of import substitution forces modern companies to pay increased attention to the organization of management. One of the ways to increase the efficiency of management is the development and improvement of such an element of it as the internal control subsystem. The organization of internal control at domestic enterprises shows the need to develop measures to improve this procedure in order to increase the efficiency of internal control. For this, the authors of the article study the features of the internal control procedure in foreign countries, identify the distinctive features of each of the models used abroad, as well as the goals, conditions and results of their application. Along with that, the internal control procedures at industrial enterprises of Voronezh are subjected to a deep analysis, weak points in the process of organizing internal control are revealed. Combining the experience of foreign companies, the authors conduct a study of the possibilities of using certain methods and procedures that have successfully proven themselves abroad, at Russian enterprises in the process of carrying out internal audit.Objectives. In this article, the authors investigate approaches and models to the organization and conduct of internal control in various countries, consider control procedures, stages of control of business processes, as well as the organization of internal control at enterprises.Methodology. In the process of achieving the set goals, the methods of scientific knowledge were used: dialectical; analysis and synthesis, comparison. The research is based on the study of relevant scientific and periodical economic literature.Results. Тhe Authors proposed the stages of control of business procedures and the procedural model of internal control of the economic part of the final Assembly shop at the JSC «VASO», which is able to increase the efficiency of the internal control system, which can be a business tool for executives and Board of Directors, and also eliminate all kinds of risks.

КОНЦЕПЦИЯ БЛАГОПОЛУЧИЯ РАБОТНИКОВ КАК ИНСТРУМЕНТ РАЗВИТИЯ СОЦИАЛЬНЫХ ГАРАНТИЙ РОССИЙСКИХ КОМПАНИЙ

The article examines the content of the current collective agreements of Russian companies. The features of social guarantees of some enterprises are described; the features associated with their activities, location, form of ownership are specified. An analysis of the differences between social guarantees of enterprises operating in the Russian Federation and in developed countries is carried out. Examples of social support for workers in American and German corporations, their features and the result of the impact of social programs on the productivity of these companies are given. The concept of the concept of employee well-being is revealed, the components of this concept are described. The article provides a general analysis of human well-being, refers to the “theory of the hierarchy of needs” by Abraham Maslow, according to which human needs form a hierarchical system, where each need has its own level of significance. As they are satisfied, they give way to other needs. Five key human needs are formulated: human physiological needs; the need for comfort and safety; social needs; the need for respect; the need for self-knowledge. Only by satisfying the last need, a person will be motivated to increase the productivity of his enterprise. An integral part of the concept of well-being for an employee of foreign companies is consultations by experts in various fields of knowledge, trainings for personal and professional growth, programs for a healthy lifestyle and proper nutrition, a free schedule of office visits, and much more. The article provides positive examples from the implementation of this concept in the social programs of foreign enterprises. In the final part of the article, conclusions are drawn and the results of a study on the occupancy rate of collective agreements in Russian companies are presented.