Global Business Operations Research Articles

Globalisation and technology: e-business, e-commerce and security issues

In recent years, international business and commerce has been experiencing dramatic changes via economic integration and globalisation. Internet has played a key role in the way companies do business, and synergism has been created between Internet technology and global business operations. This study intends to shed light on the significance and interrelationship between business and technology. It also addresses the existing barriers and security concerns.

Questioning Organizational Legitimacy: The Case of U.S. Expatriates

It has been estimated that U.S. companies with global business operations can reduce their U.S. tax bill by up to 10 percentage points if they reincorporate in a zero or low tax offshore jurisdiction. But this activity, at a time of national crisis following the September 11 terrorists' attacks and recent spate of corporate scandals, has received a less than sympathetic response from the U.S. media, ordinary taxpayers, shareholders and politicians as concerns are raised about the reduction of the tax base and the lack of oversight and regulation in offshore centres. Offshore reincorporation has been condemned as immoral, unconscionable, dishonest and unpatriotic, accusations that cast doubt on the legitimacy of the companies concerned. In question is their right to conduct business in the U.S. and in particular, their right to still be viewed as American. Their legitimacy once bestowed so readily by the company's shareholders is now being questioned not only by shareholders but also the media, politicians, government regulators, pension funds and labour unions. Expatriate companies have been slow to respond to questions of their legitimacy, viewing their offshore move as a financial decision needing only the consent of their shareholders. However, times have changed and corporate legitimacy is now in the hands of all the company's stakeholders. Companies will need to explicitly consider the determinants of their legitimacy and the implications of the implied social contract under which they operate, to remain relevant in the days ahead.

Mobile communications: evolution and impact on business operations

In recent times, a number of handheld mobile communications devices have taken prominence with a significant impact on global business operations. It is fascinating to learn the history of mobile communications, including the types of devices available and the growth of these technologies. The deliverables for determining if the customers are satisfied are provided in examples of successful implementation of mobile communications in businesses. In addition, it is observed in certain industries, handheld mobile communications have led to closer partnerships between a company and its customers and suppliers all over the world.

Determinants of Expatriate Success: An Empirical Study of Singaporean Expatriates in The Peoples Republic of China

ABSTRACT Globalization of business operations has assumed an increased significance in contemporary business strategy across the developed and developing world. Assignment of staff overseas is one of the most critical areas of the global business operations. While there have been numerous studies on various aspects of expatriate performance, such as selection, training, and compensation of expatriates, these studies have been mostly “americentric” in their scope and approach. Keeping in view the growing importance of China as a favored recipient of Foreign Direct Investment not only from the United States and Europe, but also from other Asian countries such as Japan and Singapore this study has examined factors that determine the success of Singapore expatriates in China. One of the significant findings of the study is that there is a discrepancy between perception of success factors between the expatriates themselves and the human resource directors (HRDs) of the multinational corporations who have an im...

The Towers Fall and War Begins

The implications of the tragic attack on 11 September will continue to shape the world we live in for years to come. The loss of life and the consequent declaration of a global war against terrorism will fundamentally change business in many ways. Physical security and the protection of far flung global business operations obviously merit attention.

Conundrums of Urban Planning in a Global Context: The Case of the Frankfurt Airport

The article reviews the complexity of urban policy formulation in Frankfurt, Germany, where officials are trying to enlarge the international airport to stay competitive in international air transportation and meet the challenges of global business operations. This case study analyzes an elaborate mediation process that helped the formal decision-makers avert the violence threatened by anti-globalization and environmentalist protesters. Although some legal challenges loom ahead, a majority of Frankfurt residents support the new airport expansion. The Frankfurt experience will help other communities minimize the confrontation between urban policy makers, corporate business elites, and citizen groups that are concerned with issues of public health and clean environment.

International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility

Globalization of the world economy has encouraged U.S. companies to leverage their resources and skills by expanding into existing or new foreign markets. U.S. companies have also acquired new capabilities by locating important functional activities overseas, and joining with foreign partners in new markets through alliances and joint ventures. These opportunities, however, are tempered by the constraints imposed by the competitive forces that exist in international environments. Aggressive government intervention, technological changes, and fierce local rivalries all contribute to hostile international environments for U.S. firms' global expansion. Success in global business operations requires resourcefulness and entrepreneurial risk taking. The activities of U.S. companies in foreign markets, therefore, provide a unique opportunity to examine the effects of international corporate entrepreneurship (ICE) efforts on company performance. ICE is defined as the sum of a company's efforts aimed at innovation, proactiveness, and risk taking. These efforts offer an important means of revitalizing and renewing established companies and improving their performance. Few studies have empirically examined the effects of ICE activities on companies' financial performance. This study used data from 98 U.S. companies to: (1) determine the impact of ICE efforts on firm performance, and (2) explore the moderating effect that the perceived hostility of the international environment has on the relationship between ICE and company performance. The results showed that ICE was positively associated with a firm's overall profitability and growth as well as its foreign profitability and growth. Those firms that aggressively pursued ICE in international environments with higher levels of hostility had higher return on assets (ROA) but did not achieve significantly higher levels of growth. However, as hostility in the international environment continued to intensify, ROA rose and then fell as companies increased their ICE activities. Thus, there was a point of diminishing returns to a company's aggressive pursuit of ICE under excessive environmental hostility. The results highlight both the rewards and risks of pursuing ICE. Companies benefit from ICE activities by achieving higher overall performance as well as foreign profits and growth in revenue. However, the aggressive pursuit of ICE does not always guarantee superior performance. Our results show that the payoff from ICE is moderated by executives' perceptions of the hostility of their firm's international business environment. Our findings highlight the importance of ICE for organizational success, both overall and in foreign markets. Yet, the results compellingly suggest that there are upper limits to the potential gains a firm achieves from its aggressive pursuit of ICE when the international environment in which it competes is hostile.

Political Counterbalance and Personal Values: Ethics and Responsibility in a Global Economy

Abstract:The extraordinarily rapid growth of global communications, information technology, and investments have energized hundreds of millions of business people and opened up immense opportunities in most of the countries of the world. Yet this apparently inevitable global business growth also has parallel dangers for people. In two areas the weaknesses of the global economy are evident: (1) Global business and financial operations with little accountability for long-term human needs; and (2) Goals and values of business managers that are not sufficient for business or for life.

Seniority‐based promotion in Thailand: it’s time to change

Defines and compares the differences in management styles and performance measures in Eastern and Western global business operations. The cultural differences between Thailand and the USA specifically, will be analyzed to determine their impact on the selection of a seniority v. merit promotion system. The methodology used was a questionnaire consisting of 12 questions distributed to 50 Thai companies and 50 US companies. The respondents were asked to identify the promotional structure as seniority or merit based, distinguish the benefits, and/or negative impact of the promotional structure within their respective firms, and define the effects of the structure on promotion, benefits, and corporate decision making. A summary of the findings, inclusive of statistical data comparison, is also included. Conclusions and recommendations are provided based upon the data, which suggest that the seniority‐based promotion system should change for Thailand to remain competitive in a hyper‐intensive, dynamic global marketplace.

Think Globally, Pay Locally: Finding the Right Mix

Globalization is sweeping the world, spurred on by increasingly open markets, information technology that makes it easier and more efficient to maintain global business operations, and a booming global economy that has created a host of cash-rich companies eager to go global. Thanks to this unprecedented energy and excitement surrounding globalization, companies are working to find ways to align all their structures and processes, including the pay program, to support their increasingly global enterprises. In general, companies will find that they have three compensation options for their global operations-(1) Support Locality by using a set of common worldwide principles to guide the design of pay programs, while yielding the actual design, application, and administration to local operations; (2) Emphasize Commonality by using a common set of design principles, as well as a standardized design, application and administration process for the entire the organization; (3) Balance Commonality and Locality by using a common set of principles and a common design while allowing for local application and administration. This article will help companies choose the option that is right for them while also identifying programs that are necessary to support the pay program, as well as potential problems that can derail that program.

The Internet and global cultural transformation

In this article, we discuss the role of the internet in cultural changes and transformation. The traditional view is that inherent cultures affect business operations so corporations must be cognizant of the prevalent cultures in their operating environments. Frequently, failures of multinational corporations in new environments are often blamed on corporate lack of knowledge and understanding of these prevalent cultures. While this may still be true in today’s environment, the influence of technology, particularly the internet in the 21st century, has been so significant that the world may be approaching a “unification of cultures”. Thus, this paper argues that the internet will lead to a global cultural transformation that will enhance global business operations by removing cultural barriers that lead to sub‐optimal business operations.

Islamic Ethics and the Implications for Business

As global business operations expand, managers need more knowledge of foreign cultures, in particular, information on the ethics of doing business across borders. The purpose of this paper is twofold: (1) to share the Islamic perspective on business ethics, little known in the west, which may stimulate further thinking and debate on the relationships between ethics and business, and (2) to provide some knowledge of Islamic philosophy in order to help managers do business in Muslim cultures. The case of Egypt illustrates some divergence between Islamic philosophy and practice in economic life. The paper concludes with managerial implications and suggestions for further research.

Economic liberalization in India: opportunities for multinational corporations in the hospitality and tourism sector

Multinational corporations (MNCs) in the hospitality and tourism sector have traditionally concentrated their global business operations on the more open and rewarding economies of the developed world. However, the contemporary global business environment has been fast changing in the post-Cold-War era. Asia's fast developing countries, such as India, are now offering enormous opportunities to MNCs. This paper offers a vision of what MNCs can do in order to incorporate India into their global expansion and diversification strategies. The paper gives an overview of the liberalized economic environment in India. It then identifies opportunities in the hospitality and tourism sector. It goes on to analyse the socio-economic factors that favour the entry of multinational corporations into the Indian hospitality and tourism sector.

Global Strategy of Japanese Corporations

I. Objective and outline of the survey: In carrying out its global development, if the Japanese firm continues its existing organizational structure of heavy dependence on home headquarters in Japan and a limited role of the overseas corporate subsidiaries its adaptive ability to local conditions would become weak even though it could pursue efficiency. When the adaptive ability to the local condition is lacking, the competitiveness as indicated by the share in the local market or the growth of earnings such as the rate of return can only not be expected but could even worsen. Starting with this premise, we conducted a questionnaire survey to assess the real state of the global strategy of Japanese firms to analyze the direction of the globalizing Japanese firms. Our two basic viewpoints are: 1. The necessity of the concentration (centralization) of the operation and localization (decentralization) of the global business operations of Japanese firms.