German Multinational Companies Research Articles

Moving from voluntary to mandatory sustainability reporting—Transparency in sustainable development goals (SDG) reporting: An analysis of Germany's largest MNCs

AbstractA growing number of multinational companies (MNCs) report on their progress toward contributing to the Sustainable Development Goals (SDGs) in their annual reports, yet the amount and quality of the information they disclose varies significantly. The aim of this study is twofold: First, we investigate how transparent MNCs report on their SDG engagement and second, we study how the reported SDG engagement changed over time due to major shifts in sustainability reporting requirements. Using a dataset of the largest German MNCs, we analyze their disclosure of SDG contribution reporting practices. Our results show that, overall, between 2016 and 2021 all German MNCs increased their SDG reporting activity and that the MNCs adopted four different practices to report their SDG engagement. We also found that the largest MNCs were more transparent and systematic in their SDG reporting than smaller MNCs, whose reporting was more heterogeneous. Our study contributes to legitimacy research and the role of transparency in corporate reporting as well as the debates on the efficacy of sustainability reporting legislation in the context of SDG engagement. Our findings imply that regulations on environmental and social regulation increase the transparency of sustainability reporting.

The Role of the Communication Climate, Appearance Attraction and Personality Type to the Silence Behaviour of the Malays in the German Multinational Company

Silence behaviour is a phenomenon that occurs in an organisation that is influenced by various factors. The behaviour of employees who fail to provide important information to the immediate superior is influenced by related factors such as communication climate, appearance attraction and personality type (extrovert-introvert). This study examined the influence of the communication climate, appearance attraction and personality type (introverted extroverts) on silence behaviour. PLS-SEM is used to test the hypothesis based on data from 360 Malay workers in four key sectors: industry, services, banking, and education, especially in the Klang Valley. The findings showed a significant positive direct relationship between communication climate, appearance attraction, personality type (extrovert-introverted), and silence behaviour. Theoretically, this study contributes to the knowledge management literature by studying the communication climate, appearance attraction and personality of introverted extroverts, which has proven that predictors of silence behaviour directly. Meanwhile, the application practically helps the management to identify the behaviour of Malay employees by promoting holistic dissemination of information within the organisation.

Driving Innovation Initiatives in a Multinational Company Subsidiary: A Case Study and Conceptual Framework for Further Application

This study aims at identifying factors that facilitate the development of the capacity to generate innovations in a subsidiary of a multinational company. Based on the understanding that innovation management deals with the establishment of organizational routines and the investigation of environmental factors that affect the success of the innovation process, the purpose of this work is to contribute toward identifying these factors. For this, a single case study was carried out in a Brazilian subsidiary of a German multinational company, having as incorporated objects the two Business Units of the subsidiary. The results include 20 potential factors to drive the innovation process in the subsidiary company organized as a tree-like structure with three categories: reasons to innovate, spontaneous factors and induced factors. The structure serves as a conceptual framework to address future research, as well as to help subsidiaries’ managers to leverage innovative potential. The study opens room for further implementation of open innovation in the company, as the innovation process is now more stable and robust. Excellent alternatives for open innovation projects are available in the local market and can now be implemented by the company.

Patent management and the globalization of firms: the case of Siemens (1890–1945)

PurposeThe purpose of this paper is to discuss how multinational enterprises have historically managed global patenting and to what extent the localization of patent management has supported the expansion of these enterprises. This study focuses on the electric appliance industry (one of the first industries to see the emergence of global companies) and consider the case of Siemens, a German multinational company, comparing it to General Electric (GE), an American company.Design/methodology/approachThe work adopts a global business history approach. Taking GE’s global patent-management model, described by Nishimura (2004, 2009, 2016), as the benchmark, this study analyzed Siemens’ worldwide control of its intellectual property rights between 1890 and Second World War, using German, Japanese and American primary sources.FindingsPatent management is a common means for firms to globalize and transfer technology internationally, but it can take various forms. While GE transferred patent management to its foreign subsidiaries (a process known as localization), Siemens kept worldwide patent management at its headquarters – except in Japan, where in time it transferred this activity to a joint venture. The transfer of production called for localization of patent management while focusing on exporting to other markets made it possible to keep patent management at headquarters.Originality/valuePatents are usually a source for quantitative surveys. This paper uses them to discuss how multinational companies manage property rights globally. It is the first paper to address this issue by comparing two major actors in a similar industry.

Individual Level Effects of Entrepreneurship Training: A Natural Field Experiment

It is scientific consensus that entrepreneurship training of school kids and university students is effectively resulting in entrepreneurial activity. However, we have a limited theo-retical understanding of entrepreneurship training of employees. As most employees are not inherently entrepreneurial, we lack an understanding of entrepreneurship training as a poten-tial explanatory link between the organizational and individual level to explain the emer-gence of entrepreneurial employees. Within this study, we conceptualize a theoretical model based on the established constructs as well as a self-developed scale. Our model reflects both the organizational embeddedness and entrepreneurial behavior of employees inside the or-ganization. We conducted a natural field experiment within a large German multinational technology company over a time period of half a year. As we measured the effects of entre-preneurship training as change within entrepreneurial behavior of employees over time, we tested our model using a difference-in-differences estimator. Our results support the hypothe-sized positive treatment effect of entrepreneurship training on entrepreneurial self-efficacy. Moreover, we find a significant impact of time availability and management support on the development of entrepreneurial behavior of employees. Our results suggest entrepreneurship training to be an explanatory link between an organization and the emergence of entrepre-neurial employees.

Translanguaging Practices in Local Employees’ Negotiation to create Linguistic Space in a Multilingual Workplace

This study explores the language practices and beliefs of local employees at a Shanghai-based subsidiary of a German multinational company. We conducted a seven-month ethnographic study and collected data from the company’s publicly accessible documents, meeting transcripts, semi-structured interviews with five employees, and ethnographic notes. Qualitative data analysis revealed that local employees frequently utilized translanguaging practices despite the company’s implicit assumption that English would be used as the common corporate language. Four major translanguaging practices were identified: key terms in English, bilingual label quest, cross-language recapping, and cross-language alternation. In addition, local employees perceived language as both a resource and an obstacle, often engaging in translanguaging practices to establish their own linguistic and communicative spaces, indicating that translanguaging is a complex multilingual practice influenced by internal and external factors, subject to social milieu, personal language competence, and beliefs. Ultimately, this study extends the notion of translanguaging and probes its analytical benefits for understanding fluid and discursive activities in multilingual workplaces and the sustainability of linguistic ecology and knowledge dissemination.

Conditional factors for training activities in Chinese, Indian and Mexican subsidiaries of German companies

PurposeThe purpose of this paper is to analyse the qualification measures of 12 German multi-national companies (MNCs), all of which are present in China, India and Mexico. In particular, the transfer of dual initial training practices and further training measures are investigated. It examines the impact consistent training strategies across national borders have emerged in German companies or local arrangements have developed despite identical internal influencing factors.Design/methodology/approachBecause of its design, the focus is on the external factors that influence the companies’ training measures. However, an exploratory approach was followed. To pursue the research question face-to-face expert interviews were conducted with 46 training managers in 12 active companies in all 3 countries. The interviews were completely transcribed and evaluated using qualitative methods.FindingsThe analysis shows that it is not internal company factors but country-specific contextual factors that influence training measures and that companies cannot act in the same way worldwide.Research limitations/implicationsThe study is based on 12 MNC and only analyses the blue-collar area. Therefore, it would have to be evaluated whether a similar analysis would result from a survey of other companies in different sectors or whether the differences in terms of training and further training measures would then be even greater.Practical implicationsThe study supports the internationalization strategies of MNC by providing first-hand empirical results concerning recruitment and training of blue colour workers on an intermediate skill level. It gives evidence on the need of national adaptation in the process of transferring training cultures from countries of origin into the host countries. More attention must, therefore, be paid to external factors when developing and implementing training measures.Social implicationsThe economic development in many countries includes an expansion of foreign investments. MNC provides employment and income for workers and their families. However, successful foreign investments also include sustainable recruitment and training strategies of the local workforce. The results of the study support policymakers to guide and support foreign companies to develop successful Human Resource Management strategies in the host countries.Originality/valueThis paper is original because due to the research design the internal factors are kept largely constant and the external influencing factors are singularly focused in detail. Therefore, this procedure makes it possible to investigate whether consistency training strategies across national borders have emerged in German companies or local arrangements have developed despite identical internal influencing factors.

How Does Practicing HR Analytics Establish HRM Credibility? An Epistemic Practice Approach

Whether HR Analytics (HRA), i.e., the processing of (big) data to optimize HRM decisions and interventions, promotes HRM credibility in organizations remains a puzzling issue in extant literature. Framing HRA as epistemic practice, we attend to the question how HR practitioners establish HRM credibility by practicing HRA. Drawing on observational and interview data from a case study of HRA practices at TechCom, a large German multinational company (MNC), we show that establishing credibility is largely a result of accumulating, integrating, and translating expertise distributed across the organization, which enables practitioners creating relevant insights and demonstrating HRM’s value added to its stakeholder. Within these practices, we identify epistemic alignment, i.e., aligning to HR stakeholders’ perception of business reality as well as to norms of knowledge creation when creating analytical outputs, as the main mechanism behind establishing credibility. At the same time, our analysis uncovers HRA practitioners’ need for handling a range of contingencies, i.e., compliance issues, internal dependencies, and political tensions, constraining them from fully exploiting the potentials of HRA. Highlighting the role of dashboard-building in establishing HRM credibility, our findings illustrate HRA is a deeply sociomaterial process in which knowledge and its presentation are constantly negotiated.

How Top Managers Use the Entrepreneurial Gap to Drive Strategic Change

Prior research provides strong evidence for the association between business strategy and the design and use of management control systems. We complement this research by examining the role of management control systems in situations of strategic change. We report the results of an in-depth longitudinal field study of Henkel, a German multinational company, from 2008 through 2013. During this period, the company declared a new strategy. To implement this strategy, senior management purposefully misaligned span of control and span of accountability – labeled the entrepreneurial gap – to stimulate individual initiative and higher levels of performance. Our description of how top managers enacted change suggests a strong relationship between management control systems, organizational structure, and cultural norms that together support desired outcomes. In addition, we provide evidence on the timing and sequencing of actions by top management. By the end of our study period, Henkel was a top performer in its various markets and was leading the German blue-chip index in stock returns.

Multinational corporations as institutional entrepreneurs: the dynamic interplay between automobile firms and the Turkish vocational education and training system

AbstractThis article analyses the two‐way relationship between multinational companies (MNCs) and Turkey's vocational education and training system through case studies of Japanese and German MNCs in the automotive industry. Drawing on semistructured interviews, it addresses the initiatives the MNCs have taken to guarantee skilled employees and their interaction with the Turkish vocational education and training system. The analysis shows how the MNCs have been ‘institutional entrepreneurs’ by introducing new practices. This was possible as the host environment has been open to change but also a requirement where strong industrial relations systems constituted an essential but missing home country institution.

“#Australia in the morning, #Thailand by midday, #America in the afternoon”

PurposeThe purpose of this paper is to generate insights into how multinational companies (MNCs) promote global mobility in their Employer Branding (EB) messages on Facebook.Design/methodology/approachThe authors analyzed 13.340 EB messages found on the Facebook career pages of 30 major MNCs (10 of each in the US, UK and Germany) drawing on a methodological approach combining Grounded Theory and text-mining.FindingsBuilding on the perspective of psychological contracts as sensitizing concept, the analysis of the overall sample reveals a range of core themes in EB messages across all MNCs studied. With regards to global mobility, MNCs emphasize relational, i.e. socio-emotional, contents, particularly, highlighting opportunities of experience and personal development. While global mobility is an overall marginal theme, German MNCs extensively promote global mobility, whereas US- and UK-based MNCs do not explicitly make it a subject of their messages. The findings are discussed in the light of institutional theory.Originality/valueDespite mega-trend, little is known about social media EB, especially when it comes to the contents that MNCs communicate to (potential) employees. Applying an innovative methodological approach, the authors offer insights into these contents. Discussing the findings in the light of institutional theory, it is concluded that promoting global mobility in socio-emotional terms seems of high importance to reduce uncertainties associated with living and working abroad. This might help firms to hire internationally mobile employees, especially in countries where job mobility is generally low.

Practices for building innovation capabilities of local employees at German manufacturing subsidiaries in China

Many German multinational companies aim to transform their subsidiaries in China that previously solely focused on manufacturing into subsidiaries that also drive innovation. However, these companies face numerous challenges, due to local differences compared to the West. In order to facilitate the process, this paper studies practices for building innovation capabilities at German manufacturing subsidiaries in China, taking into account the local challenges. Based on in-depth interviews with managers in China, this study identifies three practices for driving the build-up of innovation capabilities within the subsidiary organisation: build knowledge, establish a mindset for innovation and increase measures for employee retention. The study adds to extant research by detailing these practices with approaches that target local challenges. Compared to the West, the local challenges include differences in skills and knowledge, culture, as well as work behaviour.

Practices for building innovation capabilities of local employees at German manufacturing subsidiaries in China

Many German multinational companies aim to transform their subsidiaries in China that previously solely focused on manufacturing into subsidiaries that also drive innovation. However, these companies face numerous challenges, due to local differences compared to the West. In order to facilitate the process, this paper studies practices for building innovation capabilities at German manufacturing subsidiaries in China, taking into account the local challenges. Based on in-depth interviews with managers in China, this study identifies three practices for driving the build-up of innovation capabilities within the subsidiary organisation: build knowledge, establish a mindset for innovation and increase measures for employee retention. The study adds to extant research by detailing these practices with approaches that target local challenges. Compared to the West, the local challenges include differences in skills and knowledge, culture, as well as work behaviour.

Power struggles in the MNC – the contribution of a Bourdieusian perspective

Purpose The purpose of this paper is to enhance Bourdieu’s Theory of Practice for the analysis of power in multinational corporations. Therefore, they adopt and apply the Theory of Practice on power struggles within the board as the key field of power within the multinational company (MNC), which is interwoven with power struggles at the intraorganizational and interorganizational level of an MNC and its environment.Design/methodology/approach This paper describes the main elements of Bourdieu’s Theory of Practice and demonstrates their applicability to power struggles in MNCs, particularly through the development of a multi-level framework. This argument is illustrated by the case of a large German MNC’s supervisory board.Findings Extending Bourdieu’s Theory of Practice to the analysis of power in MNCs provides several advantages. Above all, we show the relevance of the board as the key field of power within MNCs that influences and is influenced by power constellations and power struggles throughout the MNC and its environment. Thereby, a more differentiated picture of (key) actors involved in power struggles in MNCs, and a deeper comprehension of the very nature of power in MNCs is achieved.Research limitations/implications Placing the supervisory board at the center implies that our framework is relevant to the study of not only power in MNCs but also boards. In addition, the authors arrive at practical implications for organizational actors and politics. As they concentrate on the presentation and illustration of the conceptual framework, the discussion of its methodological applicability options, as well as the integration of the various, detailed empirical findings of the previous MNC literature remain limited.Originality/value In contrast to earlier studies, this paper introduces a theoretical perspective that is not limited to either the micro-, meso- or macro-level of organizational analysis, but includes them and balances aspects of structure and agency well. The value of this fresh perspective on power in MNCs and its capability to deal with the complexity of this specific type of organization is demonstrated.

Change in China? Taking stock of blue collars’ work values

PurposeThis paper aims to provide insights into current issues, such as changing expectations and needs of blue-collar workers, from both an employee and HR perspective, to provoke further research in the business context on this crucial cohort, as well as broaden the current understanding of Human Resources Management (HRM) measures and incentives implemented by the respective foreign companies.Design/methodology/approachThe author conducted semi-structured interviews with 25 Chinese employees of German multinational companies working in the automobile industry located in Shanghai. Among them, 17 were blue-collar workers and 8 were white-collar workers (General Manager or HR Manager).FindingsBesides factors attributed to work conditions, all of the work values are located in the individual domain, regarding their level of focus (Facet C according to Lyons et al.). Work values in the growth orientation domain (Facet B according to Lyons et al.) show a mix between context- and growth-oriented factors. However, context-oriented factors are still outnumbering the frequency of growth-oriented ones. Regarding the modality of work values (Facet A), all of the categories (instrumental, social, cognitive and prestige) were reflected in the answers of the blue-collar workers.Research limitations/implicationsDue to the limited number of interviewees no final statement can be made on how age, education, gender, or other demographics influence certain work values. Additionally, Inglehart and Abramson (1994) also mention other potential explanations for observed differences, such as inflation or unemployment rates, and per capita gross national product which were not discussed in this research. Furthermore, the HR management selected the interview candidates regarding the blue-collar cohort which could indicate biased answers of the interviewees.Practical implicationsHRM systems (e.g. reward systems or job design) should be adapted to meet the individual preferences of employees and be sensitive toward a potential value change among certain generational cohorts. The findings showed that although pay is still on the mind of the blue-collar worker, career development seems to be even more important for the future blue-collar workforce. Therefore, companies should as well consider non-financial retention strategies in the future.Social implicationsDue to the talent shortage in China, employee’s ability to assert their interests, wishes and values could be taken to a new level. However, this does not hold true for the (still increasing) flood of migrant workers, often suffering from bad working conditions or discrimination incurred by their hukou status. Although recent changes in the labor regime have taken place (e.g. social insurance reform and labor contract law), the protection of migrant workers still remains insufficient.Originality/valueBy examining the work values of blue-collar workers, this paper draws meaningful implications for talent management with regard to work outcomes, in particular voluntary employee turnover, which is considered to be an issue of concern by both economists and businessmen.

Relationship between organizational culture and performance among German multinational companies in Mexico

The objective of this research is to determine if there is a relationship between organizational culture and organizational performance in German multinational companies operating in Mexico. To this end, we use a multiple case study, analyzing five German multinational autoparts companies with operations in Mexico, applying a questionnaire to executives at each of the five companies and to 232 employees at one of them. Our main finding is that there is a significant relationship between organizational culture variables and organizational performance variables, such as turnover, job satisfaction, satisfaction with the company, and sales. The study illustrates the importance of promoting human resources policies aimed at increasing employee satisfaction, and studies should be carried out to identify the triggers of satisfaction with greater precision, which may improve the performance of this type of company. The main limitation of this work is that as a case study, the results cannot be generalized; however, very few previous studies have attempted to establish the relationship between culture and performance in the Mexican context, so this study constitutes a milestone for knowledge in this area.

Retaining Repatriate Knowledge at the Crossroads Between Global Knowledge Management and Global Talent Management

While recent contributions introduce the need for dialog between global knowledge management (GKM) and global talent management (GTM) to facilitate repatriate knowledge transfer, a literature gap exists regarding the implementation of this hybrid approach. Using the theoretical backgrounds of repatriate knowledge, GKM and GTM, we define the challenges of retaining repatriate knowledge and suggest approaches to overcome these. Building on the qualitative case study of a German multinational company we introduce a specific organizational measure, the country expert program, which, by being at the crossroads between GKM and GTM and thus facilitating learning, overcomes repatriate knowledge transfer’s major challenges.

IDENTIFICATION OF CULTURAL DIFFERENCES IN MANAGEMENT IN MULTINATIONAL COMPANIES BASED IN SLOVAKIA

: In 2004, Slovakia became a full-fledged member of the European Union. Since then, Slovakia has been one of the attractive investment locations for multinational companies in the region of Central Europe for its skilled and educated labor force. Managers who want to succeed in running multinational companies in culturally diverse settings must have the intercultural competence, i.e. the capability of thinking and acting in interculturally appropriate ways. The lack of intercultural competence skills in managers may result not only in miscommunication but can also be detrimental to the financial and economic success of organizations. The purpose of the paper was to identify cultural differences in management in German, Korean and French multinational companies operating in Slovakia. In the paper, the methods of questionnaire, literature research, analysis, synthesis were utilized. 160 respondents participated in the research on establishing cultural differences in management based on Hofstede’s model of cultural dimensions.

Outward R&D Investment and Host-Country Patenting of German Multinational Companies

As innovation is not directly measurable, the author deploys the proxy of patents to analyze the R&D activity of the German companies with the biggest R&D spending in 2015. Through the method of partial-counting of patents filed with the ‘European Patent Office’ (EPO) and under the ‘Patent Cooperation Treaty’ (PCT), provided by the OECD REGPAT database, the author determines for the years 2008 and 2012 how many patents have been created respectively with domestic and foreign inventors. Host-country patents, i.e. patents with foreign inventors indicate, that the underlying research activity has been done abroad, meaning that the company has internationalized its R&D. The findings suggest that German firms, depending on their industry, mostly conduct research in their home-base, i.e. Germany, followed by R&D activities in select neighboring European countries and the USA.

Systemic in-house consulting: an answer to building change capacities in complex organizations

ABSTRACTChallenged by the increase in parallel change projects, many organizations have created internal change consulting teams. One theoretically inspiring and practically important phenomenon that we find in our empirical context of a German multinational company is systemic in-house consulting (SIHC). This change consulting approach, which intervenes on the back of strong system-theoretical considerations, faces a paradoxical challenge: to consult on organizational change from within, without the cachet of an external expert. Using the case of an automotive supplier creating SIHC as a coping resource for multiple, heterogeneous, and parallel change processes, the article both examines and illustrates SIHC. We argue that increasing change needs have the potential to stimulate organizational change capacity and that SIHC offers one very concrete and workable expression.