Large 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.

Assessing BizDevOps maturity using international standards: Case studies and lessons learned

AbstractDevOps has emerged as a practical approach to the interaction between development and operations. This approach has been extended to the interaction with business functions, generating the term BizDevOps. Although many proposals and tools support BizDevOps from a technical viewpoint, there has been no significant improvement in management aspects, such as evaluating the practices and processes involved in the area. This paper presents two case studies on the assessment of BizDevOps practices using MMBDO (Maturity Model for BizDevOps), a maturity model for BizDevOps based on international ICT standards. The case studies were conducted in two organizations with different profiles: a large multinational ICT company with a unit specialized in providing DevOps to the rest of the company and a small software development company that implements DevOps practices as part of its development system. The evidence we obtained in the case studies supports the adequacy of MMBDO for assessing the maturity of BizDevOps in real companies. Also, the combination of the two case studies supports the adequacy of the model for being used in companies with different sizes and levels of maturity. MMBDO is an adequate proposal for assessing the maturity of BizDevOps in software organizations and a suitable tool for process improvement.

Optimizing Digital Tools for the Field of Substance Use and Substance Use Disorders: Backcasting Exercise.

Substance use trends are complex; they often rapidly evolve and necessitate an intersectional approach in research, service, and policy making. Current and emerging digital tools related to substance use are promising but also create a range of challenges and opportunities. This paper reports on a backcasting exercise aimed at the development of a roadmap that identifies values, challenges, facilitators, and milestones to achieve optimal use of digital tools in the substance use field by 2030. A backcasting exercise method was adopted, wherein the core elements are identifying key values, challenges, facilitators, milestones, cornerstones and a current, desired, and future scenario. A structured approach was used by means of (1) an Open Science Framework page as a web-based collaborative working space and (2) key stakeholders' collaborative engagement during the 2022 Lisbon Addiction Conference. The identified key values were digital rights, evidence-based tools, user-friendliness, accessibility and availability, and person-centeredness. The key challenges identified were ethical funding, regulations, commercialization, best practice models, digital literacy, and access or reach. The key facilitators identified were scientific research, interoperable infrastructure and a culture of innovation, expertise, ethical funding, user-friendly designs, and digital rights and regulations. A range of milestones were identified. The overarching identified cornerstones consisted of creating ethical frameworks, increasing access to digital tools, and continuous trend analysis. The use of digital tools in the field of substance use is linked to a range of risks and opportunities that need to be managed. The current trajectories of the use of such tools are heavily influenced by large multinational for-profit companies with relatively little involvement of key stakeholders such as people who use drugs, service providers, and researchers. The current funding models are problematic and lack the necessary flexibility associated with best practice business approaches such as lean and agile principles to design and execute customer discovery methods. Accessibility and availability, digital rights, user-friendly design, and person-focused approaches should be at the forefront in the further development of digital tools. Global legislative and technical infrastructures by means of a global action plan and strategy are necessary and should include ethical frameworks, accessibility of digital tools for substance use, and continuous trend analysis as cornerstones.

Global tendencies in turkey meat production, trade and consumption

Global meat production totaled 357 million metric tons in 2021. Poultry accounted for nearly 40 percent of total meat production, including 4.2 percent of turkey meat (5.8 million tons). Global turkey meat production has stagnated between 5.5 and 6.0 million tons since 2008, in contrast to the monotonous upward trend in poultry meat production. Turkey meat production generally occurs under well-integrated conditions, with some large multinational companies and smaller, regional players. The industry is exposed to a number of factors that affect supply and demand, including disease outbreaks, government regulations, consumer preferences, and economic conditions. Key factors driving market growth include population growth, urbanisation, and increasing consumer awareness of the health benefits of turkey meat over other meats. In addition, advances in processing, packaging, and distribution technology have improved turkey meat's shelf life and availability, further fueling growth. Turkey farming and production are mainly concentrated in certain regions such as North America and Europe, where industrialisation has a long history and infrastructure is well developed. Turkey meat production in these areas is sufficient to meet local demand and is often exported to other regions. However, in other regions where turkey farming is less developed, such as parts of Asia and Africa, turkey meat production is insufficient to meet local demand. This type of meat must be imported from other regions. The degree of self-sufficiency in turkey meat depends on the level of development of the sector in each region. This study investigates the factors affecting global and regional markets for turkey meat and systematised the development of global consumption, production, and trade of turkey meat.

Should I Stay or Should I Go? From Turning Points to Decision to Quit in a Call Center Environment

Traditionally, call centers have experienced high voluntary turnover rates among their agents (i.e., Customer Service and Sales Representatives). This continues to be an unresolved issue. This paper presents a research study that was conducted to gain a better understanding of the reasons behind employees’ decisions to leave a Customer Service and Sales organization belonging to a large multinational company in Financial Services in the USA. The company’s call centers have consistently experienced a high turnover rate among its agents. This qualitative study was conducted with former employees across three markets to understand the “turning points” which led them to decrease their commitment to the organization and subsequently leave their job. This research aims to enhance our comprehension of the sequential decision-making process that culminates in an employee’s decision to resign. The key findings and recommendations from this study could be used to create targeted organizational development initiatives designed to improve employee retention.

Policy complementarity and the paradox of carbon pricing

AbstractWe present an economics framework appropriate to the exceptionally broad scope of the climate change problem. This considers that economic and social processes, particularly those involved in purposive transitions of energy technologies and systems, involve the interplay between three distinct domains of decision-making and associated actors. The first concerns small-scale and often short-term decision-making, much of which reflects extensive ‘satisficing’ and habituation as identified in behavioural economics. Calculated economic optimization decisions, especially of companies in the energy and energy-intensive industries, then best reflect the core assumptions of neoclassical and welfare economics, including discrete market failures. Third, at the largest scale are strategic judgements made by big actors (e.g. governments, large multinational companies) relevant to transformation of complex systems over long periods—particularly concerning innovation and structural changes, for which lessons from theories of evolutionary and institutional economics are most relevant.Economically, these can be logically mapped in relation to the technology (or more accurately, ‘best practice’) frontier. Each has corresponding policy implications: most directly, respectively in terms of (i) standards and engagement to establish norms; (ii) competitive markets with the critical role of prices; and (iii) strategic investment in innovation and infrastructure. Each faces challenges of implementation and government failure, as observed, for example, with wholly inadequate carbon pricing to date, naïve and ineffective approaches to enhancing energy efficiency, or misdirected support to R&D. Based on the domain distinctions, we argue that the corresponding pillars of policy are naturally complementary, and can be mutually supportive: strong standards and norms on energy efficiency, for example, would enhance the political space for carbon pricing by reducing its direct consumer impacts, while carbon pricing has multiple positive two-way interactions with enhanced low-carbon innovation.From this we also posit a ‘carbon pricing paradox’: that adequate carbon prices, the central recommendation of most economists, are in most jurisdictions only feasible (or even optimal) if equal analytic and policy attention is devoted to the other pillars, and the wider context of macroeconomic and fiscal policies. Only these other aspects can reduce the absolute cost impact of carbon pricing (potentially turning into a gain) and offer consumers and businesses better lower-carbon alternatives, which are critical to establishing climate-compatible pricing structures across our economies.

Sustainable by design: An organizational design tool for sustainable business model innovation

When firms want to meet ambitious sustainability targets, they often fail to deliver on more radical innovation at the level of the business model. They often struggle to design and successfully implement new, sustainable business models in practice. While sustainability tools might help bridge the design-implementation gap in business, they often lack a grounding in both theory and practice. In this study, we build on empirical research that recognises the importance of dynamic capabilities to develop sustainable business models, and the barriers and drivers that might exist at the organizational level. We investigate the following research question: How can firms address organizational design issues in order to develop the dynamic capabilities necessary for sustainable business model innovation? The research method consists of four stages derived from the iterative, user-involved method of design science research: 1) identifying the problem and defining objectives for a solution; 2) design and development; 3) demonstration; and 4) evaluation. The work results in the “Sustainable By Design” tool which was used in a workshop setting with two large multinational companies seen as sustainability leaders in their sectors: DSM and IKEA Retail (Ingka Group). The work makes two contributions. First, we contribute the Sustainable By Design tool which practitioners can use to evaluate their current organizational design, identify barriers and drivers for sustainable business model innovation, and develop strategic interventions to engage in organizational transformation. Second, we elucidate the theoretical connections between organizational design, dynamic capabilities, and sustainable business model innovation, and suggest directions for future research.

Facilitating Communities of Practice: A Case Study

Communities of practice (CoP) have become a popular source of knowledge-sharing and learning in organizations. However, several problems occur in managing them and more knowledge about this area is needed. This article addresses this knowledge gap and aims to understand and describe how to facilitate communities of practice in a large corporation. The research draws on a qualitative case study based on interviews with people involved in CoPs in a large multinational technology company and the analysis followed the method introduced by Gioia et al. (2013). The findings relate to participants' conceptions of the nature of CoPs, how CoPs align with the organizational structure of the company in which they operate, and a CoP’s working model. This research extends the knowledge of how to facilitate CoPs, with several findings about the characteristics and challenges of CoPs and potential solutions to their problems. It also helps practitioners who are responsible for establishing and leading CoPs in organizations by proposing a pragmatic approach to doing that.

Rita Cloth Store: rethinking for the times

Social implications Cases currently available on business model canvas pertain to large multi-national companies. However, this case takes the happenings at a relatively small business and applies the business model canvas there. Through the case, the authors illustrate how small Indian businesses in various small towns and cities are adapting to the disruptions in their businesses. In addition, insight regarding omnichannel operations and their implementation and decision-making at the level of such small businesses is also provided. Learning outcomes The case intends to acquaint participants with the business model canvas and its application in evaluating business models, identifying shortcomings and adapting business models accordingly. The case also provides an overview of how small businesses across India are adapting to the disruptions brought about by their traditional business models. The case also provides insights into omnichannel operations and the challenges of implementation. Case overview/synopsis Small family-owned establishments/businesses today are faced with an onslaught of disruptions to their prevalent ways of doing business. This case deals with one such business, Rita Cloth Store. The case follows in the footsteps of Sampa Kar, who realises the need for re-evaluating their decades-old business and rethinks their business model to adapt to the changing times and consumer habits. She must consider a number of measures to transform Rita Cloth Store as she attempts to change the decades-old business models to ensure its survival. Complexity academic level The case can be taught in undergraduate and post-graduate courses on entrepreneurship, business models and operations strategy. Supplementary materials Teaching Notes are available for educators only. Subject code CCS 3: Entrepreneurship

Penilaian Kinerja dan Perilaku Inovatif di Era Digital

In the digital competitive environment, the ability of organizations to innovate more than ever is the key to competitive advantage. One way to address this increased pressure for innovation is to leverage the ability of employees to generate new ideas and use these as building blocks for new and improved products, services, and work processes. This study draws on a process-based approach to HRM (Bowen and Ostroff, 2004) suggesting that HRM practices may have a signaling effect, to answer the following research question: which specific characteristics of performance appraisal are more likely to be perceived as promoting innovation in individuals at work? To address this issue, we conducted a survey of 865 employees working in large multinational companies operating in digital sectors or industries with the potential to go digital. We collected data on the main characteristics of the performance appraisal system adopted by the company where the respondents work, as perceived by the employees themselves. We also collected data on respondents' overall perception that performance appraisal encourages innovative work behavior (IWB). Then, we employ logit analysis to examine the relationship between data on the performance appraisal system and performance appraisal effectiveness data as a driver of IWB. Our results reveal that, compared to informal feedback, formal performance appraisals are more likely to reduce the perception that performance appraisals promote individual innovation and creativity at work. In addition, we find that in employee perceptions performance appraisals that focus on achieving a predetermined quantitative outcome are more likely to influence IWB positively than assessments that focus on the predetermined skills exhibited by employees performing their jobs. However, performance appraisals focused on new competencies developed by employees have a positive perceived impact that is even stronger than results-oriented appraisals. Together, these results advance our understanding of how organizations should evaluate employees in the digital age

Industry 4.0 maturity and readiness assessment: an empirical validation using Confirmatory Composite Analysis

Manufacturing enterprises’ business operations are expected to be significantly transformed by Industry 4.0 technologies. However, due to a lack of solid assessment framework and procedures to evaluate the current status and readiness to change in the academic literature, many manufacturing firms frequently fail to assess, assimilate, or struggle to implement Industry 4.0 technologies and processes. To fill this need, this research proposes a novel multi-dimensional analytical framework and indicators for assessing Industry 4.0 maturity and preparedness. This framework include-six dimensions and 32 indicators that have been tested with reference to a large multinational steel manufacturing company. The study employed CCA and IPMA analysis techniques to validate the survey data from the case company. The results support and verify the status wherein the supply chain dimension has the highest performance, and the business model dimension has the lowest in terms of Industry 4.0 maturity and readiness status. The framework and index thus developed have practical relevance as it is easy to understand, interpret and validate in any other manufacturing organization. Furthermore, this study is the first to apply the structural equation modelling technique, i.e. CCA and IPMA, to evaluate Industry 4.0 maturity and readiness from a developing country perspective in the context of steel manufacturing.

Global Virtual Team Working during the Covid-19 Pandemic

Abstract Virtual work introduces distinct challenges when compared to face-to-face or on-site work. Communication and collaboration are key factors in team development and in team performance. When teamwork is of a global nature, imposed because of a pandemic, then additional variables are introduced into the equation. The challenges that global virtual teams (GVTs) encounter when communicating and developing in the context of the Covid-19 pandemic impacts how work is structured and teams develop. This qualitative study was conducted just over 1 year after the start of the Covid-19 pandemic when working from home became mandatory and particular challenges for GVTs became apparent. Data are gathered through an online anonymous survey and followed by semi-structured video-mediated interviews with staff in a large multinational software development company. Findings show that GVTs encounter a number of distinct challenges than face-to-face teams. However, individuals are actively adapting to the situation in which they find themselves and are learning to deal with the challenges by being proactive. Even though the tools used previously may not be entirely suitable for virtual work, GVTs learn to change how tools are used to be more productive and collaborative. Challenges continue to exist in areas, such as knowledge gathering and knowledge sharing. Communication failures can lead to delays and confusion. The findings also indicate that even though GVTs are not communicating as much informally or socially with their colleagues because of remote working in the pandemic, being remote is not having a negative effect on the ability to get work done. Some aspects of team development can be negatively affected when working in GVTs. Impacts are identified relating to trust and relationship building, as well as being able to identify and resolve conflict. These results prompt further research opportunities as organizations and individuals continue to adapt and embrace global virtual teamwork.

From theory to practice: a novel meditation program at a global corporation

Global levels of stress, worry, sadness, and anger hit new highs in recent years, and employee well-being has been identified as a necessary focus in occupational health. Developed over 6 years in a large multi-national company, the Meditation Without Expectations™ 8-week course evolved from theories to practice. The intervention teaches 8 meditation techniques in a specific order and incorporates health coaching and adult learning principles that drive impact. The wellbeing program was offered using a virtual online platform to employees in more than 30 countries during 2021-22. Its effectiveness was evaluated using established standard questions and cutting-edge consumer research methods. The descriptive study uses quantitative and qualitative analyses from more than a thousand employees. Paired t-tests are used to compare pre- and post-course survey scores. The test subjects who completed the 8-week course had significant improvements (p < 0.0001) across genders, geographies, and durations of employment, and in all measured domains of stress, mindfulness, resiliency, and empathy, whereas the comparison group did not. Advanced topics analysis is used to extract common learning objectives from unstructured text submitted by enrolled employees, which helped focus the intervention on what people need or want to learn. A proprietary artificial intelligence model is used to classify subjects’ comments after completing the course, finding highly positive outcomes with potential for new habit creation due to a mental model change. A framework of characteristics that make the intervention impactful is also shared.

Blinded by the person? Experimental evidence from idea evaluation

AbstractResearch SummarySeeking causal evidence on biases in idea evaluation, we conducted a field experiment in a large multinational company with two conditions: (a) blind evaluation, in which managers received no proposer information, and (b) non‐blind evaluation, in which they received the proposer's name, unit, and location. To our surprise—and in contrast to the preregistered hypotheses—we found no biases against women and proposers from different units and locations, which blinding could ameliorate. Addressing challenges that remained intractable in the field experiment, we conducted an online experiment, which replicated the null findings. A final vignette study showed that people overestimated the magnitude of the biases. The studies suggest that idea evaluation can be less prone to biases than previously assumed and that evaluators separate ideas from proposers.Managerial SummaryWe wanted to find out if there were biases in the way managers evaluate ideas from their employees. We did a field experiment in a large multinational technology company where we tested two different ways of evaluating ideas: one where managers did not know anything about the person who came up with the idea and one where they did know the person's name, which unit they worked for, and where they were located. The results were surprising. We did not find any bias against women and employees that did not work in the same location and unit as the evaluator. Managers are advised that hiding the identity of idea proposers (from idea evaluators) may not be a silver bullet to improving idea evaluation.

Acquisition strategy to access innovation: the EMC experience in learning lessons

ABSTRACT Large multinational IT companies are always trying to produce competitive innovation at a faster pace. Even giant IT corporations, however, are unable to produce sustainable technological innovation alone. Literature offers many alternatives to obtain external technologies, but there are few studies about acquisition strategy to obtain technology innovation. A case study was carried out in a multinational IT company, EMC, which has applied mainly the acquisition strategy to develop innovations and increase its competitive position. The company has acquired many technology-based IT companies in the U.S. and abroad, and this strategy showed effectiveness in value creation, leading them to increase their income, value and market capitalisation during this period. An important finding here is that, by combining acquisitions with increasing investments in R&D, EMC was able to leverage innovations and strengthen its competitiveness and global market presence. The EMC experience has also allowed proposing a graphical tool, showing which are the key management processes that might be considered to get successful in using the acquisition strategy to create values for the business through innovation. Associated with this tool, this study also presents a step-by-step procedure to guide practitioners on how to manage the strategy of acquisition to access innovation.

THE ARCTIC IN 2022: RESULTS AND PERSPECTIVES

The Arctic has always been in a focus of close attention for the Russian leadership. The article examines the international aspects of the Arctic, analyzes the updated Arctic strategies and policies of countries (India, USA, Finland, the Faroe Islands, the European Union) and their improvements, and the withdrawal of several large European and Asian multinational companies from Arctic projects in the Russian Arctic after the start of a special military operation (SMO). It is emphasized that foreign states continue to increase their military presence in the Arctic, especially in its western part. The situation in the Arctic region was greatly complicated by the accession of Finland and Sweden to NATO, which strengthened the Arctic capabilities of the alliance and created real military threats to Russia in the Arctic direction. Using the examples of the decisions of the Government of the Russian Federation in 2022, the authors analyze the problems of the development of the Russian Arctic, especially those related to the development of the Northern Sea Route and of some of the territories of the Russian Arctic zone for the next 15 years. The article focuses on the nature of the activities of the country's leadership, ministries and departments, legislative authorities, representatives of business and public organizations for the integrational development and assimilation of the Arctic, in light of the unfavorable international events of 2020–2022. It is noted that the real impact of the SMO on the Arctic region can be only determined by its final results.

Ideological Presuppositions in Media Coverage of Corporation Tax Policy in the UK and Ireland: A Critical Discourse Analysis

This paper argues that the state’s capacity to tax corporations in order to fund itself is reaching crisis proportions. Following decades of trade liberalization, deregulation, and globalization, large multinational companies have been able to take advantage of tax competition between states in order to avoid taxation and offset their obligations. This crisis, arguably, has been facilitated by state actors and exacerbated by non-state actors: we explore the ways in which multi-national corporations (MNCs) manipulate their capital, assets, and supply chains to minimize their tax burdens; and we further consider the ways in which media narratives construct this issue and whether they challenge the practice or intensify it. Discourse surrounding taxation plays a huge part in what is considered acceptable. While the old adage that “death and taxes” cannot be avoided, it has become clear that large companies, helped by a tax avoidance industry do indeed manage to do just that. Discourse analysis reveals the ways in which ideology can be used to manage consensus around this potentially controversial subject and this paper seeks to explicate that by examining the frames, presuppositions and discursive formations present within the discourse structure. The argument is developed through a comparative case study research design demonstrating the different policy-based, economic and historical contexts of the two jurisdictions which offer some insight and explanation of the distinctive ideological discursive formations that are present within the discourses.

Article: The Potential Impact of Pillar Two on Tax Incentives

After lengthy negotiations, the OECD proposed its model rules on Global Anti-Base Erosion Rules (GloBE) on 20 December 2021. They impose a minimum tax rate of 15% on large multinational companies wherever they operate. Consequentially, the GloBE rules are intended to render tax incentives ineffective to the extent that they reduce the effective tax rate (ETR) on in-scope entities below 15%. Moreover, tax competition should also level off at 15% as tax incentives would no longer increase the attractiveness of a jurisdiction to the extent that they reduce the ETR below this amount. Nevertheless, several design aspects of Pillar Two risk obstructing those objectives. Most notably, the substance based carve-out excludes routine profit from substantive activities from the scope of the GloBE rules on a formulaic basis. This means that incentives can theoretically be maintained and tax competition can continue for this income. In practice, however, the design of the carve-out entails that it does not distinguish between incentives for substantive income and those for non-substantive income. Moreover, the combination of the substance based carve-out and the qualified domestic minimum top-up tax (QDMTT) could result in a new form of tax competition. international effective minimum taxation, GloBE, Pillar Two, tax incentives, substance based carve-out, qualified domestic minimum tax, OECD, tax competition

Leveraging ChatGPT for Enhancing the Internal Audit Process – A Real-World Example from a Large Multinational Company

Leveraging ChatGPT for Enhancing the Internal Audit Process – A Real-World Example from a Large Multinational Company

The Arctic in 2022: results and prospects

The article examines various aspects of the Arctic in 2022, analyzing the withdrawal from Arctic projects of several large European and Asian multinational companies, the termination of scientific cooperation and the fundamental changes in the activities of the Arctic Council (AC). The results of the development of the Russian Arctic are summarized (growth in cargo turnover, approval of the plan for the development of the NSR until 2035, development of the Arctic territories). Particular attention is paid to the threats in the Arctic, defense, and security issues.