Multinational Corporations Research Articles

Influence of Cultural Factors on Organizational Performance of Multinational Corporations: A Bibliometric Review from 1983 to 2020

Cultural factors are critical in shaping the organizational performance of multinational corporations (MNCs) operating across diverse countries and cultures. This study conducts a comprehensive bibliometric analysis to explore scientific developments in this research area from 1983 to 2020, based on 856 documents published across 195 journals indexed in the Web of Science. The analysis provides insights into (i) productivity and performance trends within the field, (ii) the most influential countries, regions, journals, authors, and citations, and (iii) frequently occurring keywords that highlight future research directions. This study captures the historical evolution of research on cultural factors, providing a valuable baseline for understanding the pre-COVID-19 context and enabling MNCs to better navigate cross-cultural communication and collaboration in an increasingly complex global environment.

Context‐driven implementation strategies: Exploring three approaches to implement a lean capability framework within a global production company

AbstractThis paper explores global implementation of capability building projects as part of an corporate lean programme. The aim is to identify the core parameters in global implementation of complex knowledge in various contexts within the corporation. The empirical research investigates the global implementation of a lean capability project in three regional clusters within a large pharmaceutical multinational production company. The findings indicate that contextual situations in regional clusters, for example, maturity levels, national culture, and previous experiences, influence the design of the implementation approaches embedding knowledge management principles in various ways. Three types of implementation approaches (horizontal, parallel, and delegated) are identified, which highlights the strategically different pathways to realise new frameworks for knowledge management. This study shows how adjustments to contextual situations influence the implementation process and identifies various hallenges with various approaches that may hinder the execution of lean strategy. This paper puts forward five identified implementation parameters that could guide future research and knowledge management practitioners in opex, HR, and learning and development functions.

Systemic Failings or “Isolated Incidents”? A Discourse Analysis of Corporate Blame Avoidance for the Mistreatment of Immigration Detainees

This article draws on data from a major public inquiry in the UK to examine how the multinational corporation G4S sought to avoid blame for the mistreatment of immigration detainees in its care. Our analysis is based on a critical discourse analysis of oral and written evidence given by G4S and one of the company’s managing directors to the Brook House Inquiry. We show how discursive strategies of blame avoidance were prominent features of this evidence, including the scapegoating of individual custody officers, the legitimation of the profit-seeking management of immigration detention and the de-legitimation of those who brought the mistreatment of detainees to light. The article contributes to our understanding of the discursive practices employed by powerful actors to limit corporate responsibility for systemic failings.

Corporate Cash Holdings and Advertising Spending After the Financial Crises

This paper examines the link between a firm’s characteristics and advertising budget allocation. It also shows the firm’s behavior after the Asian financial crisis and the American subprime mortgage crisis. Results show that crises can significantly impact management decisions. They can influence how multinational companies plan for their future. The study also identifies the macroeconomic factors that can influence a firm’s decision to allocate funds.

Bringing the state back in the lithium triangle: An institutional analysis of resource nationalism in Chile, Argentina, and Bolivia

International efforts to tackle climate change have ignited a global surge in demand for the “critical metals” that are used in the production of lithium-ion batteries and electric vehicles (EVs). Among them, lithium represents a critical strategic component that is concentrated in only a limited number of extractive zones. In theory, limited availability and strong demand creates favourable conditions for producer states. In practice, many states have struggled to nationalize the production of battery-grade lithium, reflecting the dominant role that multinational corporations play in the sector. This paper explores the strategies that producer states in Chile, Argentina, and Bolivia have used to navigate this rapidly changing dynamic, making the case that the recent surge in demand for battery metals has created new opportunities for challenging the oligopoly of multinational capital but the ability of governments to reorient production linkages for enhancing incomes, technical capacity, and economic opportunity in the production of lithium derivatives remains structurally and historically constrained by the institutional legacies of nationalization and social mobilization that vary across the three states. Drawing upon the “political settlements” literature, we contend that national and subnational efforts to exert greater control over the lithium sector can be attributed to the institutional legacy of political contestation and the role of social actors in crafting new power configurations that challenge dominant state-business coalitions.

Effects of transformational leadership and organizational climate on project performance in industrial revolution 5.0: a systematic literature review

Purpose The relationships between transformational leadership (TL), organizational climate (OC) and project performance have been investigated by previous studies, but no review of existing studies has systematically analyzed the effects of TL and OC on project performance in the industrial revolution (IR) 5.0 era. Therefore, this study aims to conduct a systematic literature review on the effects of TL and OC on project performance in IR 5.0, and to identify mainstream research topics, research gaps and future research directions. Design/methodology/approach To do this, a total of 53 included journal articles were obtained after initially retrieving 648 documents from the Scopus database by following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. It consists of four main steps, namely, identification of documents, screening, eligibility and included articles. In addition, science mapping analyses were conducted for keyword co-occurrence and document analyses, which aided in identifying the mainstream research topics, research gaps and future research directions. Findings The results report the annual publication trends, keywords and document analyses. Furthermore, a detailed qualitative discussion highlighted four mainstream research topics including TL in project management; the relationship between TL, OC and innovation; safety climate; and OC in project management. Moreover, this review study identified four research gaps and future research directions aligned with the mainstream research topics. They include: longitudinal investigations and multinational corporation surveys in TL; scope and longitudinal data in innovation; mono-method bias and universality of safety climate; and more comprehensive analyses of OC. Originality/value This review study would contribute to not only advancing the effects of TL and OC on project performance in IR 5.0, but also enabling project managers to understand TL or OC issues to improve project performance.

Evolving needs of learners and role of artificial intelligence (AI) in training and development (T&D): T&D professionals' perspective

PurposeThe principal aim of this research is to acquire a deeper understanding of the opinion held by the training and development (T&D) professionals, regarding the use of artificial intelligence (AI) technology in the area of T&D. Particularly in response to the evolving needs of learners, the research aims to ascertain T&D professionals' perspective on the efficiency of AI in fostering T&D, while understanding the constraints and limitations associated with this technology.Design/methodology/approachThe study is based on qualitative data. With the help of semi-structured interviews, qualitative data has been collected from 21 T&D professionals. Experts working with multinational corporations (MNCs) are selected as a study sample using a convenient sampling technique. Qualitative data were analysed using thematic analysis. Conclusions were drawn based on the results of thematic analysis.FindingsThe findings of the study have revealed a notable and rapid evolution in the requirements of learners, particularly during and post-COVID-19 period. AI-based technology has emerged as a significant contributor, offering learners distinct personalised experiences and enhanced convenience. However, the implementation of AI in training remains in its early stages and has not reached widespread adoption. The findings of the study also highlighted various challenges and limitations, while using AI-based technology for training. It has been found that AI complements rather than replaces the role of a physical trainer.Originality/valueThe originality of this study lies in the application of AI-based training for professional learners, from the perspective of the T&D practitioners working with MNCs in Maharashtra, India. Numerous studies that have recently been published, emphasise the areas in which AI technology can transform the T&D industry. Yet, there are currently very less studies that have attempted to understand the evolving needs of learners and support of AI-based training for the same, from the perspective of the T&D professionals working in Maharashtra, India.

Þarfir netsins

Sú fallvatnsorka sem seld hefur verið til stóriðju hefur skilað óverulegum hagnaði og fyrirséð er að hún mun ekki skila verulegum hagnaði nema dregið verði úr skuldsetningu raforkufyrirtækjanna. Söluverðið er þekkt og að hluta til fast. Væntingar um að stóriðja verði leið til að styrkja iðnað í landinu og auka fjölbreytni útflutnings hafa snúist upp í andhverfu sína. Stóriðjugeirinn skapar ekki fjölda starfa og margföldunaráhrifin eru ekki mikil. Þjóðhagslseg áhrif eru mest á byggingartíma virkjananna. Niðurstaðan er að virkjun fallvatna hefur skilað litlu; orkusölu til fimm fjölþjóðafyrirtækja og óverulegum skatttekjum, utan tímabundins orkuskatts sem nú hefur verið aflagður. Fræðileg nálgun er að mestu sótt til Max Weber; annars vegar tilgátunnar um yfirburði regluveldisins, læsingu ákvarðanatöku í járnbúr, og hins vegar um að markleitin skynsemi, verkfærnin, geti umpólast þannig að leiðin verði að markmiði. Þannig hefur virkjun og orkuveita orðið að sérstakri atvinnugrein sem hefur eigin vöxt að markmiði undir yfirskini arðsemi. Yfirlýst markmið um samfélagslega ábyrgð, skyldur við nærsamfélagið og ábyrga umgengni við náttúruna eru löguð að fyrirætlunum og framkvæmd, þ.e. "heildsölu á raforku til stórnotenda innan rammaáætlunar.

Tax Avoidance and Regulation of Transfer Pricing: From the Perspective of International Law

With the social economy developing continuously and the deepening of economic globalization, the scale of multinational corporations is expanding increasingly. However, due to the gap in tax rates between different countries, multinational corporations have room for tax planning. As a common means of tax avoidance in multinational enterprises, transfer pricing is officially realized by relying on the difference of tax rates in different countries. But transfer pricing in bring huge profits to multinational companies at the same time, the multinational home and host country revenue caused great damage, so the transfer pricing has become the focus of the tax authority regulation, this paper mainly through the case analysis of Coca-Cola company, this paper expounds the multinational companies through the transfer pricing tax avoidance and transfer pricing multidimensional adjustment of thinking. Therefore, for multinational corporations, under the constraints of relevant laws and norms, reasonable planning and control of the risk of transfer pricing is the key to enterprise tax avoidance compliance.

Jurisdictional Conflicts and Solutions in Bribery Cases of Multinational Corporations

Commercial bribery by multinational corporations is hampering global economic development and threatening the legal authority of states. In dealing with such cases, countries often form violent conflicts of jurisdiction in cases due to differences in legislation, law enforcement and judicial systems, among other reasons. Such conflicts not only affect the efficiency of handling cases, but may also lead to a waste of law enforcement resources and the evasion of legal responsibility by multinational corporations. By introducing the basic types of jurisdiction in cases of multinational corporations, this paper points out the reasons for the formation of conflicts of jurisdiction among countries. Then this paper systematically analyzes some representative domestic acts and international conventions, and finds that most countries and international organizations are actively working on legislation. In many years of judicial practice, the world has achieved remarkable results in combating transnational commercial bribery. However, there are still many shortcomings in these existing legal mechanisms and implementation methods. This paper aims to propose a more efficient solution to the existing dilemma, and suggests that the mechanism for determining jurisdiction in bribery cases of multinational corporations should be further improved by strengthening the international cooperation mechanism and establishing a global anti-bribery body.

The Exploration of the Remedies of Environmental Infringement by Multinational Corporations: Taking China as an Example

Under the background of an increasing number of multinational corporations, it is noteworthy that they can bring great benefits and harm to host states at the same time. Consequently, it is necessary for host states to build up effective regulations to deal with potential risks. This essay chooses to take China as an example. As the biggest developing country in the world, how to regulate foreign investments has become an imperative issue if China wants to achieve further and sustainable development. By introducing its current legislative system and displaying cases, this essay analyzes the deficiencies of the current regulation system from legislative and judicial aspects. Based on the above analysis, this paper also attempts to explore possible solutions to make up for the weaknesses. Ultimately, the author agrees to construct a more exclusive and comprehensive legal system for MNEs in China and refine the prevailing judicial remedies. The main methods used in this paper are literature analysis and comparative analysis.

The UK CFC State Aid Saga: Chronicle of a Death Foretold

The purpose of this article is to outline the key issues raised in the UK controlled foreign companies (CFC) case which is currently being litigated before EU Courts. This case involves the alleged grant of unlawful State aid by the United Kingdom to certain multinational companies via the group financing exemption included within CFC rules. This article describes the state of play in this ongoing State aid saga and argues that the ECJ should follow the Opinion of Advocate General Medina and conclude that State aid was not granted.

A compass for sustainability? Semiconductors, rare earths and CSR: the case of onsemi

AbstractSemiconductors are a rampant ICT sector utilized in everyday life for electronic devices. This industry provides plentiful income to multinational corporations (MNCs) but has been put in the spotlight for its tremendous social, ecological, and political impact. The figures become dramatic in sub-Saharan Africa and developing countries, which have abundant resources but poor working conditions and abrupt environmental degradation. In this interplay, rare earths have become leading assets for companies and governments and are highly debated for their controversial nature; thereby, corporate social responsibility (CSR) and environmental practices turn pivotal. This work aims to connect the bountiful industrial sector of semiconductors with rare earths governance and CSR. To this end, this inquiry critically scrutinizes these three assets, analyzing the case study of onsemi as a business case and launching selected strategic and policy perspectives. This paper reviews these three concepts and conducts a content analysis on onsemi CSR Report and Annual Sustainability Report. The literature review emphasizes the increasing importance of these three topics within the mineral economics and sustainability research. The company analyzed produced cogent reports but supplementary information is needed to better understand its results within the semiconductors and extractive industry. This may help determining key achievements and areas for improvements in the private sector for REE sustainability, CSR and environment, social and governance (ESG) results and disclosure. The availability and governance of rare earths will determine decisive sustainability directions of utmost priority for geopolitical equilibria. The undertaken corporate and institutional strategies will lean toward dramatically diverse scenarios.

Regulation of Environmental Responsibility by Multinational Enterprises: From the Perspective of Host States

With the vigorous development of the global economy, the global ecology and environment are deteriorating. As one of the main economic activities in the world, transnational corporations greatly promote the economic development of the home country and the host country. However, at the same time, when transnational corporations conduct business activities overseas, due to various reasons, their activities in the host country have a great impact on the surrounding environment, and have caused actual environmental harm to the local environment. This paper uses the method of case analysis and comparative analysis to study. Therefore, this paper discusses the environmental regulation of multinational enterprises from the perspective of the host country. It examines how host countries implement local environmental standards and the impact of MNEs activities on the local environment. The analysis includes a discussion of the effectiveness of the current regulatory framework and its ability to hold multinational corporations accountable for environmental degradation. At the same time, taking the environmental impact as an example, the problems existing in the current legal regulatory framework are pointed out. Finally, the paper proposes strategies to strengthen the environmental responsibility and sustainability practices of MNE operating in host countries.

Global tax avoidance and evasion: A landscape through insights from a systematic literature review and bibliometric analysis

This research aims to comprehensively investigate contemporary practices and factors influencing global tax avoidance and evasion through a systematic literature review (SLR) and bibliometric analysis. This study methodology uses SLR with bibliometric analysis to map this research trend. Relevant literature was collected and systematically analyzed to identify key themes, methodologies, and findings regarding tax avoidance and evasion. The study’s findings identify various tax avoidance practices, including profit shifting, transfer pricing strategies, and the use of tax havens by multinational corporations. The report also highlights various forms of tax evasion, such as money laundering and illicit financial flows. Key factors influencing tax behavior are ethical considerations, government policies, economic factors, and corporate governance practices. This analysis highlights the complex interactions between these factors in shaping tax practices globally. The study’s conclusions show that effective tax governance requires a multifaceted approach integrating ethical standards, a strong regulatory framework, and international cooperation. Ethical corporate behavior and transparent reporting are essential in promoting tax compliance and fairness. This study emphasizes the critical role of policymakers in designing and enforcing tax policies that discourage aggressive tax planning while encouraging economic growth and equality. Recommendations from these findings are to increase transparency in multinational operations, strengthen international tax cooperation, and improve global tax administration capabilities. In addition, increasing taxpayer education and awareness can foster a culture of compliance and ethical tax practices. Future research should prioritize longitudinal studies and case-specific analyses to deepen understanding and develop targeted interventions to address tax avoidance and evasion challenges.

Exploring the Interplay between Business Economics and Global Trade

This study explores the interplay between Business Economics and global trade, focusing on how firms apply economic principles to navigate international markets. The primary aim is to understand how economic policies, risk management, and strategic decision-making processes influence global trade strategies. Utilizing a qualitative research methodology, the study involves in-depth interviews with business economists, trade experts, and senior executives from multinational corporations. Data collection centers on participants' experiences and insights regarding the impact of economic policies, risk management strategies, and decision-making processes in global trade contexts. Thematic analysis of the interview data reveals that firms actively use Business Economics to adapt to changing trade policies, manage risks such as currency fluctuations and geopolitical instability, and optimize their market entry and pricing strategies. The study highlights that businesses leveraging economic models and principles are better positioned to respond to external changes, mitigate risks, and capitalize on growth opportunities in the global market. These findings underscore the critical role of Business Economics in shaping effective global trade strategies and offer valuable insights for firms seeking to enhance their international operations.

Entrepreneurs in Africa – the agenda for Business History in Africa: Complexity and continuity

Abstract Africa has been the location of centuries of business activity. African business displays a complex development path through early indigenous kingdoms, colonial control and post–1950 independence. The historiography on these developments is unbalanced in favour of the role performed by enterprises embedded in capitalist metropolitan economies. Complex and dynamic African entrepreneurial activity persisted but adapted to global market changes. Business historians have not systematically explored African agencies in business, the management systems and the organisational evolution of enterprise in Africa. As market liberalisation provided new business opportunities, African businesses emerged to complement and compete with foreign-owned enterprises. As market liberalisation stimulated globalisation, multi-national companies returned to African markets, fostering competition and collaboration. Changes in the political economy of many African states gave rise to more dynamic regulatory contexts and public-private partnerships in different sectors of developing African economies. These trends appear in the Business History of Africa from the perspective of African business, owned by Africans from diverse ethnic origins as proof of the complex trends and processes in African enterprise development. This contribution seeks to refine the focus on business and entrepreneurs in Africa as agents in the continent’s business landscape. The manuscript acknowledges the diversity among African entrepreneurs and the dynamically changing state-business nexus through history. Can one identify a distinct «African» nature of enterprise? This manuscript addresses aspects of conceptual clarity on what constitutes African business in an attempt to map the agenda for Business History in Africa.

Effectiveness of Performance Appraisal in Multinational Companies

A strategic HRM method called international performance appraisal (IPA) helps multinationalcorporations (MNCs) to regularly assess and enhance corporate, subsidiary, and individual performance inrelation to well-defined, predetermined goals. An incentive structure established by an effective IPA canguarantee that foreign workers and foreign subsidiaries are operating in the best interests of the parent firm.Information asymmetry and goal incongruence between the parent firm and its subsidiaries are theprimary causes of IPA's complexity. MNCs can select from a variety of IPA approaches, and theseapproaches are influenced by a host of firm-specific and host-contextual factors. Even though IPAs arewidely acknowledged to be important, most MNCs have not handled IPAs well.

Competencies displayed by multinational corporation senior managers in critical business situations

PurposeThis research investigates the types of critical business situations worked on by multinational corporations' senior managers and the competencies they employ to achieve desired outcomes.Design/methodology/approachThe research is based on a database of N = 440 critical success incidents obtained from semi-structured interviews with a sample of 143 senior managers during competency-based consulting projects over a 25-year period from 1995 to 2019. Content analysis was used to categorise critical success incidents, by similarity of business intent, into groups labelled as critical business situations. Behavioural coding was used to identify competencies.FindingsNine critical business situations were found, and 10 competencies identified, accounting for 79% of behaviours displayed by the senior managers. Five competencies were found to be used more universally and five were more dependent on the specific critical business situation.Research limitations/implicationsThis research provides an overview of the initial stage of this topic. Further empirical validation including applicability in contemporary business contexts, testing of competency relationships with critical business situation criterion-referenced outcomes, and temporal and geographic usage will be presented in an accompanying study.Practical implicationsKnowledge of the specific competencies and their relative frequencies when displayed in different critical business situations provide the potential to give more targeted development suggestions to senior managers facing similar situations.Originality/valueThis study examines concurrently, both the business situations and associated competencies of senior managers, a group for whom extant research is significantly limited.

Peer conformity and competition shape how business managers evaluate withdrawals from Russia amid the Ukraine War

States have long used economic sanctions in response to violations of international law as a strategy to restore order. Increasingly, firms also reject doing business with violators. In response to the war in Ukraine, hundreds of multinational corporations voluntarily withdrew from Russia, even when policymakers were still debating the extent of sanctions. How did firm managers evaluate whether to withdraw from the Russian market? Using a survey experiment with Japanese firm managers conducted three months after the Russian invasion of Ukraine in 2022, we explore how peer effects-information on what other firms are doing in response to the crisis-influence support for withdrawal of business activity with Russia. Our findings show that information about withdrawal by other firms from a diverse set of countries promotes peer conformity that increases support. In contrast, information about ongoing business with Russia by Chinese firms fosters competition that reduces support. Market exposure moderates these reactions, although the concern about peer behavior does not appear to be driven by a reputation mechanism. Our research provides insight into how business actors perceive the strategic interplay of peer influence and market dynamics in the context of geopolitical conflicts.