Managers Of Multinational Companies Research Articles

Optimal Contracting of Pension Incentive: Evidence of Currency Risk Management in Multinational Companies

Using a large sample of multinational companies (MNCs), this paper intends to explore whether executives’ pension incentives will function as a mechanism of optimal contracting in motivating firm risk management. We find that granting more pension to executives is significantly related to the higher likelihood and intensity of currency hedging strategies in MNCs. This suggests that pension incentive should promote executives to more actively manage firms’ risk. Such a positive relationship is robust to endogeneity and is more prominent in firms with strong shareholder power. We further explore the contribution of currency hedging induced by pension incentives to shareholder value. Supporting the hypothesis of optimal contracting, our results indicate that pension incentives play an important role in reconciling managerial risk preference and shareholder value creation.

Diversity Management in Multinational Companies in Germany: A Benchmark Study about Implementing Diversity Management

Diversity Management in Multinational Companies in Germany: A Benchmark Study about Implementing Diversity Management

Analyzing the employment of expatriates as high-performance workers in terms of their impact on selected areas of the company.

The central topic of the paper is human resource management in multinational companies as one of the consequences of globalization. The paper particularly focuses on the use of expatriates as high-performance workers. The aim of the paper is to provide an analytical view of the work of this type of employees in branches of multinational organizations operating in Slovakia. The paper presents research results aimed at analyzing the employment of expatriates in branches of multinational companies in terms of selected features (size of branch, how long the company operates on the Slovak market and number of branches of an multinational company) and finding statistically significant links between the time an expatriate spends in the country and the impact he/she has on selected aspects of the company, namely innovation and new knowledge, his/ her share in addressing business challenges and on relationships at work from the perspective of branch managers of multinational companies. The research was conducted between January and May 2019 using a standardized questionnaire method on a sample of 138 managers of branches in which expatriates worked. The obtained data were processed by the methods of descriptive statistics and Chi-square test, through which three research hypotheses were tested.

Multinational Management Strategies of Expatriate and Local Managers

Due to increasing doubt regarding the ability of multinational companies to recruit the right manager for complex company tasks, this paper describes and analyses the general approaches and administration strategies exercised by expatriate and local managers in multinational companies. Descriptive research is performed by analysing questionnaires administered to 705 employees across 25 multinational corporations in three large cities in China, including Guangzhou, Shanghai, and Beijing. The results reveal that local managers are strongly correlated with lateness, while expatriate managers are correlated with time off. However, the results also show the pros and cons of recruiting expatriate and local managers in multinational companies. The research shows that expatriate and local managers’ management practices have outstanding value for multinational business success. The concept of differences in the management practices of expatriate and local managers in multinational corporations is an innovative notion. The paper highlights that both expatriate and local managers have a positive impact on multinational growth and success.

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

PurposeIn the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance.Design/methodology/approachData were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling.FindingsThe results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance.Practical implicationsThese results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed.Originality/valueThe results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

Corporate social responsibility strategy and economic business value of multinational companies in emerging economies: The mediating role of corporate reputation

AbstractCorporate social responsibility (CSR) and business value of multinational corporations are significantly tied to corporate reputation. In this work, we investigated the mediating influence of corporate reputation of multinational companies (MNCs) on their CSR strategy and economic business value. The study adapted a quantitative methodology with a sample of respondents from multinational corporations in Ghana—an emerging economy. Drawing from 267 employees of MNCs in Ghana, a structural equation modelling and bootstrapping analysis are used to assess the hypothesised relationship. The results showed that CSR strategy positively and significantly predicts economic business value and corporate reputation of MNCs. Findings also showed that corporate reputation mediates the relationship between CSR strategy and economic business value of MNCs operating in emerging economies. This study suggests that good corporate reputation significantly influences MNCs' strategy in corporate responsibility and economic business value. Thus, management of MNCs can enhance their corporate business objectives through sustainability practices.

Leveraging Technology for Talent Management

This study aims to understand the use of technology for talent management and its impact on organizational performance. This study reviewed the extant literature and conducted semi-structured interviews of 125 HR managers in multinational companies in India to understand the impact of technology in talent management for organizational performance. The research utilized the grounded theory approach to conduct the interviews and the analysis of the data was done with NVivo 8.0 software. It was found that organizational performance can be achieved by using technology for talent management. It highlights the role of talent metrics and analytics and HR business partnerships in organizational performance. This study proposes a theoretical model for the usage of talent management technology towards organizational performance using the grounded theory perspective. This study provides key insights for the HR managers, talent management technology marketers and developers.

Aggressive Tax Avoidance by Managers of Multinational Companies as a Violation of Their Moral Duty to Obey the Law: A Kantian Rationale

Managers of multinational companies often favour an aggressive tax avoidance strategy that pushes the legal limits onto the advantage of shareholders and the disadvantage of the spirit of democratically legitimized tax laws. The public and media debate whether such aggressive behaviour is immoral. Aggressive tax avoidance is a subset of the aggressive legal interpretations potentially observable in all fields which places little weight on the will of a democratically legitimized legislation. A thorough ethical analysis based on the deontological approach of Kant demonstrates that aggressive tax avoidance as a special case of operating on the edge of legal boundaries is potentially immoral. Applying the Kantian “contradiction of conception or will” test shows that this maxim might not be conceived or willed as a general law of nature. If all natural or legal persons aggressively interpret laws on all subjects and in every imaginable situation, then central principles of the system of law we all rely upon would be severely compromised. Therefore, aggressive tax avoidance by managers of multinational companies may violate the managers’ moral duty to obey not only the letter but also the intention or spirit of the law. The validity of the argumentation depends critically on the formulation and interpretation of the respective maxims and on assumptions about the legal system. Preserving central elements of Kantian philosophy, the article demonstrates the complexity of a philosophical argumentation which tries to justify the moral intuitions that underpin the common negative evaluation of aggressive legal strategies in business.

Global Project Management-Challenges and Barriers

The present research paper carries a lot of weight in current global business scenario. With globalization, the volatility in business and project management has been increased. Many internal and external factors have been affecting the successful execution of global projects of multinational companies. This present examine the responses of 50 managers of multinational companies from IT and Construction companies and evaluate the various factors within and outside of company that may affect the performance of global project team. T-test has been implemented as statistical technique in the research paper. The results indicate that Organizational Culture, Socio Economic Factors, Cross National Culture and Top Management Attitude influence the performance of global project team. The study will assist the decision makers in exploring and considering the factors that affect the performance of global projects while taking their final verdict. The findings of study will help the organizations in formulating strategies to tackle the expected challenges and barriers.

Leveraging the common and outsourcing the distinct: institutional difference and multinational company identity in emerging economies

ABSTRACTThis paper explores the challenges of outsidership faced by multinational companies (MNCs) accessing emerging economies. The paper departs from popular conceptualisations of culture drawing instead on social identity theory as part of an institutions-based view, to explain how employing a singularities approach can allow the identification of commonalities of Indianness and Australianness that can be leveraged to ameliorate negative socially embedded business norms that pose a challenge to MNC success in emerging economies. This study shows that despite recognised formal (regulatory) and informal (cultural) differences, managers of Australian MNCs operating in India were able to innovatively identify and exploit cultural commonalties/singularities to ease cultural adjustment and mitigate intergroup conflict, allowing them to achieve an innovative institutional fit. The paper discusses how, using this approach, sole-venture MNCs can access many of the benefits provided by collaborative entry modes while preserving MNC identity. We further propose that the singularities approach can provide a valuable starting point to develop culturally appropriate competence training initiatives.

Cultural Model of Information Technology Usage (CMITU)

Abstract
 
 Since usage is a necessary condition for deriving benefit from information technology and the use by the end users is not guaranteed, one of the main streams of research in the field is the explanation of acceptance and use. Increasingly, it appears that researchers are shifting focus from Technology Acceptance Model (TAM) to Unified Theory of Acceptance and Use of Technology (UTAUT). The main contribution of the UTAUT to the TAM was the addition of demographic variables (such as age, gender, and experience with IT) and situational variable (voluntariness) as the main moderators of beliefs on technology usage. This paper extends this line of research beyond these moderator variables. Given recent trends in the globalization of business and the prominence of multinational team members, managers in multinational companies are now confronted with the need for increasing usage of information technology from a workforce comprised of different cultures. Furthermore, without understanding the role of cultural values in IT usage, it could be hard for developers to design and guide systems development in ways that are appropriate in different cultures. Since individuals are conditioned by their culture and the suggestion form prior research that UTAUT model do not universally hold across cultures, this paper extends the UTAUT model by espousing national cultural values as an important set of individual difference moderators. These espoused national cultural values of masculinity/femininity, individualism/collectivism, power distance and uncertainty avoidance are incorporated into an extended model of UTAUT as moderators. At this stage, the model was constructed and will be explained in this paper. The future work is the validation of the model in which a cross-sectional survey will be conducted in two countries varying in term of culture according to Hofstede’s cultural dimensions’ indexes. The findings may provide a useful lens for the successful implement of information technology in multinational and transnational organizations.
 Keywords: Information Technology, user’s acceptance, use of information technology, national culture, cultural change.

Job Stress and Work Performance of Marketing Professionals

Marketing professionals are under a great deal of stress due to many antecedents of stress such as overload, role ambiguity, role conflict, responsibility, participation, etc. The stress badly affects the physical, cognitive and behavioural health and also effects professionalism as well as person’s consistency in the environment and acceptance to change .The outcomes of stress is also seen on work performance. This study examines the relationship between job stress and work performance by using (n=3200) data of marketing professionals, designated as managers and assistant managers in multinational companies working in Pakistan. The data obtained through questionnaire and analysed on percentages. The comparison of the level of stress and performance showed that out of respondents who had low stress 58.33% were performing at a high level as compared to the 70% respondents who had high stress but their performance was low. The difference between the above two percentages was 11.67 % which supported the hypothesis. The results showed that job stress significantly reduce the performance of an individual. The results also suggested that organization should plan to help the employees in coming out of stress.

Labour Standards in Global Value Chains: Disentangling Workers’ Voice, Vicarious Voice, Power Relations, and Regulation

Theoretical developments and case studies have started to explore the complexity and intricacies of new forms of labour regulation in Global Value Chains (GVCs). This paper builds on these to integrate what we know into a coherent framework that can guide practice and future research. We bring together existing knowledge on new forms of labour standards regulation—such as Private Social Standards (PSSs) and International Framework Agreements (IFAs)—into a framework that integrates and disentangles the contextual determinants, processes, regulatory mechanisms, and outcomes of such regulation in GVCs. Of special significance is the distinction between regulatory processes—vicarious voice, workers’ voice, coordinated international campaigns—, and regulatory mechanisms—IFAs and PSSs. Extant literature tends to deal with existing forms of regulation without much clarity on their respective roles. Our framework identifies two pathways from regulatory processes to regulatory mechanisms: the labour power and the customer power pathways. Our framework also establishes clear connections between concepts, underlining links of causality and moderating effects. We explore the impact of value chain structure, and specifically, the connections between workers’ and vicarious voice, on regulatory outcomes. With regard to the structure of supply chains, we examine the coupling of operations and the sensitivity of value chain participants to reputational risk and drive within value chains. We add the significant dimension of ‘internal drive’ to existing understandings of drive to capture the possible internal discrepancies leading managers in multinational companies (MNCs) to apply mixed incentives to their suppliers to comply with labour standards. Additionally, we introduce the concept of ‘vicarious voice’, which we define as a situation where workers’ voice is substituted by that of actors who, unlike local unions or activist unionism, do not have a close representative link with workers. Vicarious voice may be composed of ethical consumerism, social advocacy, and international union federations.

HRM implementation in multinational companies: the dynamics of multifaceted scenarios

This study explores why the subsidiary line managers of multinational companies (MNCs) implement HRM practices differently than intended by headquarters. HRM implementation is understood as a process in which one has to differentiate between a range of multifaceted HRM implementation scenarios. We build on a single case study in a Dutch subsidiary of a US engineering company that we characterised as an extreme case. The analysis comprises in-depth interviews with HRM and line managers and a study of policy documents using multiple iteration cycles with the software ATLAS.ti. Line managers engage in a range of behaviours: they ignore, deviate, imitate, internalise, initiate and/or integrate the delegated practices because they fail to see the value of the content of the practice and the process of execution. The HRM implementation scenarios found, although distinctive, often overlap, evolve or coexist in a dynamic HRM implementation process. We predict a support role for HRM managers in which they facilitate line managers in deviating from intended practices, and initiating new ones, in order to increase the likelihood of successful internalisation and integration.

Customs Management in Multinational Companies

What do senior customs managers within multinational companies do? By answering this seemingly simple question this paper sheds light on an overlooked but significant business function with immediate relevance to logistics and supply chain management practice. The paper draws on a series of long interviews with key informants at nine multinational companies. Their combined annual turnover is in excess of $400 billion. Multiple feedback cycles enabled robust analysis and factual accuracy. A review of relevant customs law, procedures and literature gives the necessary context. Findings show that senior customs managers are involved in three interdependent areas of activity: logistics support, supply chain management and regulatory compliance. However, there is considerable diversity in practice and managers are often drawn between allocating time and effort to reducing costs, safeguarding compliance and developing strategic capabilities. The identified customs management practices provide an opportunity for relevant staff in companies to identify and reflect on scope for improvements and to take more informed trade-off decisions about the allocated time and effort. A more informed understanding of the customs management practices also has utility for trade and customs policy makers tasked with reducing the transaction costs between businesses and border agencies—especially in the context of trade facilitation. Last, but not least, the paper may also serve as a stepping stone for further academic enquiry that extends the link between businesses and Customs agencies.

Enforcing the International Code of Marketing of Breast-milk Substitutes for Better Promotion of Exclusive Breastfeeding: Can Lessons Be Learned?

Exclusive breastfeeding, one of the best natural resources, needs protection and promotion. The International Code of Marketing of Breast-milk Substitutes (the Code), which aims to prevent the undermining of breastfeeding by formula advertising, faces implementation challenges. We reviewed frequently overlooked challenges and obstacles that the Code is facing worldwide, but particularly in Southeast Asia. Drawing lessons from various countries where we work, and following the example of successful public health interventions, we discussed legislation, enforcement, and experiences that are needed to successfully implement the Code. Successful holistic approaches that have strengthened the Code need to be scaled up. Community-based actions and peer-to-peer promotions have proved successful. Legislation without stringent enforcement and sufficient penalties is ineffective. The public needs education about the benefits and ways and means to support breastfeeding. It is crucial to combine strong political commitment and leadership with strict national regulations, definitions, and enforcement. National breastfeeding committees, with the authority to improve regulations, investigate violations, and enforce the laws, must be established. Systematic monitoring and reporting are needed to identify companies, individuals, intermediaries, and practices that infringe on the Code. Penalizing violators is crucial. Managers of multinational companies must be held accountable for international violations, and international legislative enforcement needs to be established. Further measures should include improved regulations to protect the breastfeeding mother: large-scale education campaigns; strong penalties for Code violators; exclusion of the formula industry from nutrition, education, and policy roles; supportive legal networks; and independent research of interventions supporting breastfeeding.

The bottom of the pyramid: an integrative approach

Purpose – The purpose of this paper is to examine the concept of the bottom of the pyramid (BOP) in the context of the knowledge economy. Design/methodology/approach – A conceptual approach integrating the BOP perspective, diffusion of innovations, and the new product development process. Findings – This paper structures a framework that might be helpful in advancing the competitiveness and product development capabilities of multinationals. Practical implications – The paper provides managers of multinational companies with an organized way of evaluating opportunities in BOP markets in the context of a global knowledge economy. Originality/value – The paper incorporates ideas and theories from three business and marketing fields into a framework that could be used as basis for an action plan.

Corporate Leadership Responsibility of Global Top Executives at the Cavite Export Processing Zone Authority

This study was designed to evaluate the profile of various foreign top-level managers of multinational companies operating at the Cavite Export Processing Zone as a basis for proposing a model for global corporate leadership responsibility (GCLR). The study was conducted in 2011to 2012. The setting was multinational companies located at the Cavite Export Processing Zone: Cavite Export Processing Zone Authority in Rosario, Gateway Business Park in General Trias, and the First Cavite Industrial Economic Zone in Dasmariñas.

Human resources management in multinational companies in Africa: a systematic literature review

This study provides a systematic review of literature on the analytical perspectives and empirical research on human resource policy and practice in multinational companies (MNCs) in Africa. There is a need to ‘take stock’ of research publications on HRM in MNCs in Africa both intellectually and practically. The review identifies modes of analysis and thematic approaches in HRM literature on MNCs in Africa. The results provide support for particular clusters of research literature. These pertain to interests and motivations of MNCs, comparative political economy and institutional theory, labour market and HRM modes of analysis, cultural paradigms of indigenous management thought and clusters of HRM practice research. Areas for further research are identified.

The roles and competencies of HR managers in Slovenian multinational companies

Purpose– The HRM literature provides various typologies of the HR managers’ roles in organizations. The purpose of this paper is to examine how the roles and required competencies of HR managers in Slovenian multinational companies change when these companies enter the international arena.Design/methodology/approach– The authors explored the total population of 25 Slovenian multinational companies (MNCs) operating in Serbia. In these companies the authors conducted interviews with 16 expatriates working in branches in Serbia, sent questionnaires to the CEOs, and conducted a survey of 50 HR managers and interviews with 15 of them. The authors used a triangulation approach and analyzed the results by multivariate methods and content analysis.Findings– The authors found that the complexity of HR managers’ roles, and expectations of their competencies, increases with an increasing level of internationalization of companies. Orientation to people and conflict resolution are seen as elementary competencies needed in all stages of internationalization. The key competence is seen to be strategic thinking that, according to CEOs and expatriates, goes hand in hand with cultural sensitivity, openness to change and a comprehensive understanding of the international environment and business processes.Practical implications– These results can potentially be used for assessing the HRM roles and competencies in different stages of company internationalization, especially MNCs operating in the ex-communist states of Europe, and will help HR managers to support expatriates, CEOs and other employees working in branches abroad more efficiently.Originality/value– This study contributes to the review and evaluation of the quite limited research on HR managers’ roles and competencies in MNCs. It focuses on MNCs and outward internationalization in the Central and Eastern European region. It contributes to studies of the HR managers’ roles and competencies and is the first study to establish a set of roles and competencies for HR managers in Slovenian MNCs.