Large Multinational Companies Research Articles

You cannot hide your telephone lies: Providing a model statement as an aid to detect deception in insurance telephone calls

Deception research regarding insurance claims is rare but relevant given the financial loss in terms of fraud. In Study 1, a field study in a large multinational insurance fraud detection company, truth telling mock claimants (N = 19) and lying mock claimants (N = 21) were interviewed by insurance company telephone operators. These operators classified correctly only 50% of these truthful and lying claimants, but their task was particularly challenging: Claimants said little, and truthful and deceptive statements did not differ in quality (measured with Criteria‐Based Content Analysis [CBCA]) or plausibility. In Study 2, a laboratory experiment, participants in the experimental condition (N = 43) were exposed to an audiotaped truthful and detailed account of an event that was unrelated to insurance claims (a day at the motor races). The number of words, quality of the statement (measured with CBCA), and plausibility of the participants' accounts were compared with participants who were not given a model statement (N = 40). The participants who had listened to the model statement provided longer statements than control participants, truth tellers obtained higher CBCA scores than liars, and only in the model statement condition did truth tellers sound more plausible than liars. Providing participants with a model statement is thus an innovative and successful tool to elicit cues to deception. Providing such a model has the potential to enhance performance in insurance call interviews, and, as we argue, in many other interview settings.

The Tax and Inflow of FDI

The article examines the impact of corporate tax rates on inflow of foreign direct investments. In the last 15 years the countries all over the world have adopted numerous measures in order to attract more foreign capital. One of the most common measures has been the reduction in the corporate tax rates. Although useful article shows that taken in isolation this measure has not had a significant impact on investment decision taken by the foreign investors. Macroeconomic stability, stable social and political environment, ease of doing business and ability to hire skilled labour influence investment decisions much more then the level of corporate tax rates. Croatia has also louvered its corporate tax rate from 35% to 20% in 2001. Judging from the available data that has not had any impact on inflow of FDI. In order to attract more greenfield investment Croatia will have to sort out some domestic issues and to organise more effective targeting of the largest multinational companies.

Strong or invisible hands? – Managerial involvement in the knowledge sharing process of globally dispersed knowledge groups

This paper investigates factors affecting the effectiveness of knowledge sharing in globally dispersed expert groups in a professional service MNC. We specifically focus on possible moderating effects of managerial involvement on the relationships of dispersion and trust with the individual satisfaction with knowledge sharing within such groups. We test our hypotheses in the context of a large multinational software company. This paper contributes to a deeper understanding of how knowledge is shared in globally dispersed settings in the MNC and challenges traditional assumptions on the appropriate level of analysis in studies of knowledge flows within MNCs.

Conceptualizing structural ambidexterity into the innovation of human resource management architecture: the case of LG Electronics

This study documents, examines and conceptualizes how a large Korean multinational company, LG Electronics, achieves structural ambidexterity within the human resource management (HRM) function through architectural innovation. Synthesizing from prior studies of HRM architecture, architectural innovation and ambidexterity, a conceptual framework is proposed. Based on this conceptual framework, our interpretation of the collected data depicts how structural ambidexterity is developed within the HRM function. Our research contributions are twofold. First, we incorporate the theory of structural ambidexterity into the conceptualization of architectural innovation in HRM. Second, our study provides some useful insights for practitioners who face the challenge of and the need for continuously adjusting HRM practices to meet the ever-changing business environment.

The UK and the Joint Strike Fighter

The 20 years since the end of the Cold War have seen a radical shift in the nature of the defence industrial sector, with a rationalization of the number of companies involved. While something similar happened in the civilian aerospace market, which has become dominated by two giant rivals-the United States-based Boeing Corporation and the European consortium of Airbus-it occurred over a much shorter timescale. For example, in the US defence market Boeing merged with McDonnell Douglas in August 1997; Lockheed and Martin Marietta merged in March 1995; while Northrop Aircraft acquired Grumman Aerospace in April 1994.1 Today the defence market is increasingly dominated by a smaller number of large multinational companies that have global interests, such as Boeing, Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, EADS, Thales, and BAE Systems. In conjunction with this slow but steady rationalization, most western countries since the end of the Cold War have sought some form of peace dividend and diverted resources from defence to other areas of public expenditure.2 For example, the United Kingdom's defence expenditure dropped as a percentage of Gross Domestic Product (GDP) from 4.6 percent in 1987 to 2.56 percent in 2010. This drop mirrored much of what was happening in the rest of NATO, with the average defence expenditure falling from 1.93 percent in 2001 to 1.58 percent in 2010.3These budgets have been put under severe pressure by the financial crisis and recession from 2007 onward, including the slow economic recovery in North America and the sovereign debt crises in Europe. For the UK, this pressure resulted in the publication of a strategic defence and security review by the Ministry of Defence (MoD) in October 2010. The review outlined reductions to the defence budget, the number of platforms operated by the services, and the numbers of civilian and service personnel.4 These cuts were implemented even as the UK became involved in the crisis in Libya and continued to operate in Afghanistan.5 Meanwhile, weapon systems increasingly have been incorporating cutting edge technology in a process that requires additional expenditure by NATO countries on software development, systems integration, and supporting technology, such as satellites and real-time global communications. These requirements have caused the proportion of fixed costs to variable costs to rise; and that, combined with the decline in defence spending, has resulted in a decrease in the number of actual systems procured from one generation to the next, so that the unit production costs have risen as well.6These factors have forced companies on both sides of the Atlantic to increase their participation in, and support for, the global defence market. As a result, defence industries have looked to increase partnering opportunities with their opposite numbers around the world, although challenges remain.7 Indeed, although the US still has a total national defence budget that is twice as large as the rest of NATO put together (in 2007, US$625.9 billion compared to $311 billion), even Washington is finding it increasingly difficult to adequately fund all of its modernization programs.8 For example, the US cancelled the RAH-66 Comanche helicopter program in 2004 and had reduced the planned number of F-22 Raptor air-superiority fighters from the original requirement of 750 to 381 by November 2008.9 jn this increasingly austere environment, with governments and companies looking to increase cooperation and collaboration, the Joint Strike Fighter (JSF) program came into being-a program that now has three export customers, eight partner countries, and international defence industrial participation. This article looks at the UK's involvement in what is now a multi-service, multinational defence program, examining the problems the UK has encountered-including the difficulties in predicting the program's costs and time schedule-the risks in recent UK MoD decisions, and the policy options and problems facing the UK, if it wants to remain one of the main partners in the JSF program. …

How Transformational Leaders influence Team Creativity: An Empirical Test of Mediating Mechanisms

Using a sample of 62 ongoing research and development (R&D) project teams from a large multinational company, the present study examines how transformational leaders enhance team creativity. The re...

Application of knowledge management technologies in Korean small and medium-sized construction companies

In today’s emerging knowledge-based economy, Knowledge Management (KM) is being rapidly disseminated in both academic circles and the business world. The effective management of knowledge is vital to the survival and prosperity of a company, particularly in project-based industries such as construction. As a result, construction companies have adopted Information Technology (IT)-based KM systems (KMSs). KMS refers to the technology platform and infrastructure that an organization employs to support KM. However, the increasing attention given to KM is targeted at Large Multi-national Construction companies (LMCs), with little attention given to Small and Medium-sized Construction companies (SMCs). Compared to LMCs, SMCs need different sources and types of knowledge and technology to remain nourished and healthy. In this context, this research attempts to facilitate KM activities within SMCs through the distribution of a set of KM technologies tailored to meet the requirements of SMCs. First, we analyze key obstacles to implement KM activities within SMCs through a survey. Based on this analysis, a set of KM technologies are then identified and adapted to support the KM activities of SMCs in a feasible fashion. In addition, we discuss the expected change of organizational behavior by the distribution of those KM technologies. In the end, these technologies are synthesized into a web-based Construction Knowledge Management Portal (CKMP) system that seeks the inter-organizational sharing of construction knowledge. By delivering key KM technologies to SMCs, our study benefits both academia and the construction industry.

Morocco's Novatis Group: diaper manufacturing in a developing country

Subject area This case tackles the diaper industry in a developing country and can be applied to three different undergraduate or graduate level courses, including Marketing Management, Strategic Management, and Operations and Supply Chain Management. The case describes the industry, the manufacturing process, along with detailed information about Novatis Group's business and functions and the overall improving economic environment in Morocco. Study level/applicability The Novatis Group case has several objectives that can be applied to three different courses within undergraduate and graduate studies including Marketing Management, Strategic Management, and Operations and Supply Chain Management. Case overview The case focuses on Novatis Group, a diaper manufacturing company located in Morocco which competes against multinational companies (MNCs) such as Procter and Gamble and Kimberly Clark in order to satisfy the rising diaper needs of the country. Morocco is a developing country that is strengthening its manufacturing industries. The rising economic conditions have given way to a growing middle class and an increased demand for disposable baby diapers. Novatis uses two distribution channels for the diapers: the multi-tiered distribution channel and the streamlined (straight to retailer) channel. Novatis Group is producing diapers at full capacity; still demand has exceeded supply. Expected learning outcomes Students will understand the business processes in a developing country and how a small, local company can compete against large MNCs. Supplementary materials Teaching notes are available, please consult your Librarian to access.

A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies

Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.

Transformational and transactional leaderships, empowerment climate, and innovation performance: A multilevel analysis in the Chinese context

Innovation through creativity is an important factor in the success and competitive advantage of organizations. Theory and research suggest that both leadership and organizational climate have important consequences for individual creativity. However, researchers have rarely considered the interactive effects of leadership and organizational climate. This study taking a “Substitute for Leadership” perspective, develops and tests the idea that empowerment climate affect the relationship between leadership and followers' creative performance. Data were collected from 93 teams, including 465 team members and 93 team supervisors, in a large multinational company based in China. Hierarchical linear modelling was used to examine the hypothesized cross-level model. As expected, transformational leadership and team empowerment climate were positively related to subordinates' creative performance and transactional leadership was negatively related to subordinates' creative performance. In addition, the relationship between leadership and subordinates' creative performance was moderated by team empowerment climate. The study resulted in the implication of several major variables for explaining individual creativity in the Chinese context.

Integration of data mining within a Strategic Knowledge Management framework

In today’s globally interconnected economy, knowledge is recognised as a valuable intangible asset and source of competitive advantage for firms operating in both established and emerging industries. Within these contexts Knowledge Management (KM) manifests as set of organising principles and heuristics which shape management routines, structures, technologies and cultures within organisations.When employed as an integral part of business strategy KM can blend and develop the expertise and capacity embedded in human and technological networks. This may improve processes or add value to products, services, brands and reputation. We argue that if located within a suitable strategic framework, KM can enable sustainable competitive advantage by mobilising the intangible value in networks to create products, processes or services with unique characteristics that are hard to substitute or replicate. Despite the promise of integrated knowledge strategies within high technology and professional service industries, there has been limited discussion of business strategies linked to Knowledge Management in traditional capital intensive industries such as mining and petroleum. Within these industries IT-centric Knowledge Management Systems (KMS) have dominated, with varying degrees of success as business analysis, process improvement and cost reduction tools. This paper aims to explore the opportunities and benefits arising from the application of a strategic KM and Data Mining framework within the local operations of large domestic or multinational mining companies, located in Western Australia (WA). The paper presents a high level conceptual framework for integrating so called hard, ICT and soft, human systems representing the explicit and tacit knowledge embedded within broader networks of mining activity. This Strategic Knowledge Management (SKM) framework is presented as a novel first step towards improving organisational performance and realisation of the human and technological capability captured in organisational networks. The SKM framework represents a unique combination of concepts and constructs from the Strategy, Knowledge Management, Information Systems, and Data Mining literatures. It was generated from the Stage 1- Literature and industry documentation review of a two stage exploratory study. Stage 2 will comprise a quantitative case based research approach employing clearly defined metrics to describe and compare SKM activity in designated mining companies.

Agrobusiness et agriculture familiale

EnglishThe banana sector in Ecuador is unique compared with other main exporting countries: many small andmedium producers operate alongside large national andmultinational companies. And while differences between these different production units are minimal in terms of productivity at the plot level, they become pronounced when it comes to packaging and transportation aspects of the production process where economies of scale are critical. Nonetheless, preserving small-scale operations, despite the trend towards a concentration of land holdings, permits agribusinesses to adjust their volumes in response to fluctuating demand. francaisLe secteur de la banane-fruit en Equateur presente l'originalite d'une structure productive tres differenciee, contrairement aux cas des principaux pays producteurs pour l'exportation. De nombreux petits et moyens producteurs cotoient en effet les plus grosses entreprises nationales ou multinationales. Les ecarts de productivite entre ces differents types d'unites productives sont pourtant peu marques en ce qui concerne la production au champ. Ils apparaissent en revanche determinants dans les processus de conditionnement, d'emballage et de transport jusqu'au port d'exportation, segments du processus productif ou apparaissent les economies d'echelle. Mais le maintien des petites structures de production, malgre une tendance a la concentration du foncier, permet aux entreprises agro-exportatrices de disposer d'un volume d'ajustement leur permettant de s'adapter au marche.

治疗精神疾病药物知识产权分析

世界各国精神疾病患者数量逐年上升，覆盖地区逐年增多，中国是精神疾病发病重灾区。国际上非常重视精神疾病治疗药物的研究，目前临床使用广泛且疗效优良的原研治疗精神疾病药物几乎被大型跨国制药企业垄断。本研究以精神药物专利申请量为评价指标，分析中国在精神药物研发方面的创新性。结果提示：1) 国内精神药物研发相对滞后，中国的制药业与发达国家和地区相比存在较大差距，国内制药企业在精神药物研发方面进行完全自主开发新药，在今后相当长时间内仍有一定难度；2) 通过对跨国公司专利到期时间的分析，仿制药开发和生产是国内在精神药物研发方面的方向之一。为了填补精神疾病药物研发的空白，缩短与国际间差距，我国应加强精神药物的创新和仿制力度。 Currently the number of mental illness increased in each countries and the coverage area has increased every year, where China is the hardest area. The international community attaches great importance to the study of antipsy-chotic drugs, which excellent drugs, which are widely used in clinical and showed efficacy, monopolize by large multi-national pharmaceutical companies. This study analyzed the innovativeness on antipsychotic drugs in China, with its patent application for evaluation index. The results indicated that: 1) The development of domestic antipsychotic drugs were relatively dropped behind, in which there was a considerable gap compared with the pharmaceutical industry in China and developed countries, and the domestic companies were still more difficult to complete self-development of new drugs for quite a long time; 2) Generics development and production were the direction of domestic antipsychotic drugs, by analyzing the multinational patent expires time. In order to fill our gaps in antipsychotic drugs market, we should strengthen efforts in antipsychotic drugs of innovation and imitation.

El mercado petrolero internacional

El petróleo es una mercancía especial. Las variaciones en sus precios han tenido un impacto significativo en la economía mundial. Por ser un recurso natural, las reservas no se distribuyen de acuerdo a las necesidades de consumo, lo que hace de la industria y del mercado el petróleo una actividad de alcance global, con un comercio internacional importante e intenso. De reflejar principalmente transacciones entre subsidiarias de grandes empresas multinacionales, los mecanismos de determinación de precios del petróleo han evolucionado hacia formas abiertas de mercado, con diversos participantes del lado de la oferta y de la demanda, que incluyen grandes empresas estatales, empresas multinacionales con negocios en la producción y refinación, así como especuladores e intermediarios financieros que compran y venden contratos que no necesariamente involucran entregas físicas. El presente artículo ofrece una visión integral de las características, funcionamiento y perspectivas del mercado petrolero, con el propósito de proporcionar información e interpretaciones útiles para los analistas de este importante tema

Operational effects and firms' responses

PurposeThe purpose of this paper is to clarify the impact of international outsourcing on manufacturing strategy and performance of apparel manufacturing firms. The authors aim to show how managers address the effects of international outsourcing on four dimensions of manufacturing strategy – cost, quality, flexibility and delivery.Design/methodology/approachThe paper utilises a qualitative exploratory approach. The authors adopted a case study method, collecting data through face‐to‐face, semi‐structured interviews with managers of six apparel manufacturing firms, selected on the basis of a number of criteria, including their use of international outsourcing.FindingsThe findings show that international outsourcing generates both positive and negative effects on the firms' competencies in four manufacturing dimensions (cost, quality, flexibility and delivery). A conceptual framework is presented that shows how firms' managerial actions carried out to address the effects of outsourcing play a crucial role in determining their manufacturing performance.Research limitations/implicationsBecause the sample comprised small and medium‐sized apparel firms from New Zealand, the findings may lack generalisability. Further research could expand this work to large multinational companies and service providers in international outsourcing.Practical implicationsThe findings suggest that managers of apparel firms which engage in international outsourcing of manufacturing need to consider the impacts on their manufacturing strategy, particularly with respect to the potential trade‐offs between the manufacturing priorities.Originality/valueThe paper addresses a research gap in the outsourcing and manufacturing literatures by exploring the effects of international outsourcing on manufacturing strategy, and the impact of managerial responses to these effects, on firm performance.

Trust Building in Globalized Software Engineering: A Cultural Perspective

Commitment is the manifestation of trust. Therefore the building of trust in global software engineering (SE) companies is a relevant question to study. The objective of this research is to explore the trust-building processes in global SE from a cultural perspective. In this research, staff from five large multinational SE companies were interviewed. In the conceptual part of the article, firstly the domain of SE is introduced, secondly there is a discussion on the concept of trust and trust-building processes and thirdly, cultural dimensions affecting trust-building processes are examined. Finally, findings from the case companies are discussed.

A quantitative approach to guiding the promotional efforts of IPAs in emerging markets

Investment promotion agencies (IPAs) engage in a range of promotional activities with the aim of improving foreign direct investment (FDI) inflows. However, at any particular time, they tend to concentrate their efforts towards image building or investment generation. The decision of where to focus promotional efforts depends on investors’ perceptions of the IPA's location. In contrast to current methods, this paper employs an innovative quantitative finance approach that allows IPAs to speedily measure risk perceptions using real-time data. Using this approach, the paper focuses on determining whether or not the risk of nationalisation is a concern for large multinational companies in the natural resource sector. Our empirical results demonstrate that such companies are not concerned about nationalisation risk. The findings have implications for guiding the promotional efforts of IPAs, both in countries where nationalisation is a risk and in countries where changes in the political environment have reduced the risk of nationalisation.

Factors Influencing Sales Revenue in the Multinational Pharmaceutical Companies

The paper analyzes the role of lagged profitability, lagged sales revenue, lagged R&D expenditure and marketing expenditure on firms’ amount of sales revenue in pharmaceutical industries. The model was estimated for multinational pharmaceutical companies using annual data, gathered from thirteen large multinational pharmaceutical companies in the world, during the period 2003 to 2010. The regression analysis method uses a fixed effect model method, with generalized least squares (GLS) method. The result further shows those firms one-year lagged profitability (t-1), one-year lagged sales revenue (t-1), one-year lagged R&D expenditure (t-1), and marketing expenditure to be positive and affect significantly the firms’ sales revenue in the multinational pharmaceutical companies.

Building Innovation Subsidiaries in Emerging Markets: The Experience of Novo Nordisk

OVERVIEW:Innovation subsidiaries increasingly follow manufacturing subsidiaries into emerging markets. Compared to well-established Western economies, emerging markets present unique challenges for the development of innovation management capabilities at subsidiaries. This paper distinguishes between implementer and innovator subsidiaries and provides suggestions on how to transform an implementer subsidiary to an innovator. This transformation may start as a strategic priority within the company and then be translated into specific actions. Suggestions for actions are based on the experience of a large multinational pharmaceutical company, Novo Nordisk. Lessons learned include assigning the subsidiary responsibility for a self-contained piece of work while maintaining a central R&D function, balancing local and in-company management, using local innovation talent, and educating new hires into the company culture.

How do large multinational companies implement open innovation?

This paper addresses a major gap in reported research on open innovation (OI): how do companies implement open innovation? To answer this question a sample of 43 cross-sector firms were reviewed for their OI implementation approaches. The study analyzed how firms moved from practising closed to open innovation, classifying the adoption path according to the impetus for the adoption of the OI paradigm and the coordination of the OI implementation. The way firms adopted OI was found to vary according to (1) their innovation requirements, (2) the timing of the implementation and (3) their organizational culture.