Performance Of Multinational Corporations Research Articles

Employee Performance in Multinational Corporations: The Impact of Cross-Cultural Training in the Globalized Era

In today’s era of rapid globalization, cultural conflicts among employees can pose a significant challenge to the development of multinational corporations (MNCs). This paper examines the impact of cross-cultural training on employee performance in MNCs. The literature review emphasizes the growing significance of International Human Resource Management (IHRM) and the crucial role of employee behavior and attitudes in shaping job performance. The study hypothesizes that cross-cultural training enhances the cross-cultural adaptability of expatriate employees, thereby positively impacting their performance. The methodology section outlines the methods used in the study for sample selection, variable measurement, data collection, and statistical analysis. The discussion section discusses the strategic costs of cultural integration within organizations. It emphasizes the importance of cross-cultural training in promoting effective communication, mutual understanding, and productivity in multicultural work environments. The paper highlights the need for MNCs to adapt to different cultural environments and achieve success in global business operations by fostering cross-cultural communication and collaboration.

CROSS-BORDER TAX CHALLENGES AND SOLUTIONS IN GLOBAL FINANCE

In the dynamic landscape of global finance, cross-border transactions have become increasingly prevalent, facilitating economic growth and international trade. However, accompanying this expansion are complex tax challenges that both multinational corporations and governments encounter. This abstract delves into the multifaceted issues arising from cross-border taxation and explores potential solutions to mitigate these challenges effectively. One of the primary concerns in cross-border taxation is the issue of base erosion and profit shifting (BEPS), where multinational enterprises exploit gaps and mismatches in tax rules to artificially shift profits to low-tax jurisdictions, thereby eroding the tax base of higher-tax jurisdictions. Such practices not only lead to revenue losses for governments but also create an uneven playing field for businesses. Furthermore, navigating the intricate web of international tax treaties and agreements poses significant hurdles for taxpayers and tax authorities alike. The lack of uniformity in tax regulations across jurisdictions often results in ambiguity and disputes regarding the allocation of taxing rights and the determination of taxable income. Addressing these challenges requires a comprehensive approach that incorporates both policy reforms and international cooperation. Implementing measures such as the OECD/G20 BEPS project, which aims to modernize international tax rules and combat tax avoidance strategies, is crucial. Additionally, enhancing transparency through initiatives like country-by-country reporting enables tax authorities to gain insights into the global operations of multinational corporations, thereby facilitating more effective enforcement of tax laws. Moreover, fostering collaboration among nations through information exchange agreements and multilateral frameworks enhances the effectiveness of tax enforcement efforts and reduces opportunities for tax evasion. Embracing digitalization and leveraging technology tools can also streamline tax compliance processes and enhance the efficiency of cross-border tax administration. The complexities of cross-border taxation in global finance necessitate proactive measures to address BEPS, enhance tax transparency, and promote international cooperation. By implementing comprehensive strategies that blend policy reforms with technological innovations, stakeholders can navigate the challenges posed by cross-border taxation while fostering a fair and conducive environment for sustainable economic growth.
 Keywords: Cross-Border, Tax, Environment, Sustainable, Economy, Review.

Nurturing as a Masculinity-Femininity Dimension and Performance of Multinational Corporations in Uganda

This paper examined the influence of nurturing as a masculinity-femininity dimension on performance of multinational corporations (MNCs) in Uganda. Specifically, it focused on aspects of nurturing that included relationship building and negotiations as key attributes to strategic business performance. The justification for this study was that MNCs in Uganda were under-performing given that they were finding it difficult to continue running their businesses profitably to the extent that some decided to close down. A cross-sectional research design that relied on quantitative approach was employed involving 50 participants who filled in a questionnaire. Two methods of analysis involved simple regression analysis and a multiple regression analysis. Results revealed that both relationship building and negotiations had significant positive influence on performance of MNCs in Uganda. In particular, poor work relationship building and work negotiations among MNCs’ employees contributed to poor performance of MNCs in Uganda. The study recommends MNCs to align their strategic vision and mission towards nurturing to instilling employee work relationship building and negotiations toward achieving the objectives of the MNCs.

The Impact of Remote Work on the Culture and Performance of Multinational Corporations

This research explores the complicated dynamics of how remote work influences MNC culture and productivity. This mixed-methods research explores global work's ever-changing reality using quantitative data and qualitative insights from Schein's Organizational Culture Model and the Globally Distributed Teams Framework. Qualitative research within MNCs shows major cultural developments, including changes in communication techniques, acceptance of adaptation as normal operating practice, and increased cultural diversity. The quantitative study reveals that remote work improves organizational and employee effectiveness. The study emphasizes the strategic importance of adaptability, different perspectives, and flexibility for multinational companies (MNCs) to prosper in the era of remote labor. The Resource-Based View (RBV) and Hofstede's Cultural Dimensions Theory lead discussions and provide practical guidance for businesses managing a remote, global workforce. As practitioners, legislators, and organizational leaders define remote work's post-pandemic trajectory, the research provides pragmatic insights and theoretical understanding about the future of work. How cultures grow, how leadership influences remote teams, how to enhance performance metrics, and how new technology affects talent management and distant collaboration in global businesses are possible study subjects.

Regional Logistics Capability, Supply Chain Strategy, and Performance of Multinational Corporations

Regional Logistics Capability, Supply Chain Strategy, and Performance of Multinational Corporations

ВПЛИВ ЕКОНОМІКИ 4.0 НА ГЛОБАЛЬНІ ЛОГІСТИЧНІ ОПЕРАЦІЇ ТРАНСНАЦІОНАЛЬНИХ КОРПОРАЦІЙ

The article examines the transformation of logistics processes under the influence of the latest technologies that characterize Economy 4.0. The main goal of the study is to analyze the impact of the Economy 4.0 concept on the global logistics operations of multinational corporations. The authors analyze how the implementation of these technologies helps to optimize supply chains, reduce costs, increase transparency and efficiency of inventory management, and ensure seamless delivery. It studies how TNCs adapt to the changes caused by Economy 4.0 and how these changes affect their competitiveness in the world market. The article also reveals the challenges and opportunities that arise before TNCs in the context of the integration of Economy 4.0 technologies. In particular, it examines the impact of global crises such as the COVID-19 pandemic, military conflicts and climate change on logistics processes, as well as the strategies that companies can apply to minimize these risks. Based on the analysis, it is concluded that the integration of innovative technologies is key to improving the efficiency of logistics operations in TNCs, allowing them to achieve better results in a globalized world. A number of recommendations have been developed for TNCs regarding the implementation of Economy 4.0 technologies, which will help them optimize their logistics processes, increase the level of customer satisfaction, and strengthen their positions on the market. One of the key scientific innovations is the development of a theoretical model that integrates Economy 4.0 technologies in the context of global logistics, providing a new perspective on supply chain management in the digital economy. Economy 4.0 allows logistics operators to integrate advanced analytical tools and supply chain management systems, providing greater transparency and accuracy in cargo tracking, route optimization and inventory management. The study identifies and systematizes specific changes in logistics operations due to the introduction of these technologies, and determines how these changes contribute to the optimization of supply chains, increasing efficiency and competitiveness at the international level.

Protectionism and its Impact on MNC Subsidiaries’ Performance

AbstractThis study investigates the relationship between local protectionism and performance of multinational corporation (MNC) subsidiaries in China. We integrate overarching theories (i.e., institutional theory and extended resource-based view) to investigate a model for identifying whether local protectionism at the subnational level is beneficial or detrimental for foreign subsidiary operations or functions as a double-edged sword. We also examine whether or not internal organizational capabilities and relational capital with government moderate the effects. On the basis of regression analyses, our empirical findings reveal that the positive or negative effects of subnational protectionism in China depend on performance types. Moreover, performance contribution is considerably moderated by various internal capabilities of MNC subsidiaries. Findings offer valuable and practical implications for MNCs intending to invest in emerging economies.

Realizing the 2050 Paris climate agreement in West Africa: the role of financial inclusion and green investments

International organizations have emphasized the importance of global economies supporting efforts to combat climate change. The Paris Agreement or Agenda 2050 urges nations to ensure that the increase in global temperature is limited to 1.5 °C. Studies have analyzed the factors that contribute to harmful emissions, particularly carbon dioxide emissions, in order to limit temperature rise. However, since there are other equally harmful pollutants, this study evaluates the impact of financial inclusion and green investment on reducing greenhouse gas emissions. The study uses data from West Africa, where environmental pollution has significantly increased. The study employed regression analysis while controlling for economic growth, foreign direct investment (FDI), and energy consumption. The study's key findings reveal that financial inclusion and green investment have a monotonic effect on reducing greenhouse gas emissions. Additionally, the study confirms the environmental Kuznets curve hypothesis and the pollution haven effect for the region. Technological innovation reduces pollution, but green investment and financial inclusion reinforce this effect. Therefore, the study recommends that governments in the sub-region commit to supporting green investment and environmentally friendly technological innovations. It is also crucial to strictly enforce laws regulating the operations of multinational corporations in the region.

Analysis of Security Paradigms for Resource and Infrastructure Management in Global Organizations

There is widespread agreement that information systems are the lifeblood of the global economy, providing businesses with a crucial competitive edge in international markets and giving the world's governments and corporations of the 21st century the foundation they need to ensure the safety of their citizens and deliver superior services. Despite their importance, information systems face significant risks within and outside of the company. The best security methods can be circumvented by professional hackers, as the complexity of security attacks, the number of vulnerabilities, and the absence of implementation of quality information security management within companies have expanded substantially in recent years. For the sake of this discussion, the authors examine several security paradigms designed by scientists to protect the operations of multinational corporations.

Does Employee Empowerment Influence Employee Motivation? Findings of A Study on A Multinational Corporation Operating In the IT Industry

Does Employee Empowerment Influence Employee Motivation? Findings of A Study on A Multinational Corporation Operating In the IT Industry

A Tale of a Rentier Social Contract and Diminishing Economic Rents: Multinationalism and Resource-Seeking Capital in Contemporary Africa

The invisible hand of private global enterprises in the political and economic landscape of Africa’s rentier states best exemplifies the extent to which Multinational Corporations (MNCs) now personify the variant/competing strategic resource-seeking interests of two fronts, i.e., (i) the emerging economy MNCs [BRICS nations, with China and Russia in particular] and (ii) the EU (European Union) and North American states. We have also seen from these fronts, a growing prioritization of economic/political hegemonies over mutually-beneficial bilateral relationships that ensure shared economic development and stability (with respect to ideals, such as good governance, human rights, and democracy) in the Global South. Inadvertently, this has emboldened the proliferation of oligarchs and shadow states whose resilience is contingent upon the existence of autocratic infrastructure, inequality, and a shrinking democratic space. In rentier states, such as the Democratic Republic of Congo (DRC), positive spillovers (in both development and economic terms) have been dwindling—notwithstanding the ubiquity of private global enterprises therein. Using the Rentier State theory and the Agency thesis, the article explores the operations of MNCs in Africa. Through a content analysis of literature on global capital, institutions, and the role of multinationals in resource rich states, the article focuses on the DRC to highlight what we know and do not know on the negative side of globalization. Some of the negative outcomes of the unregulated power of private global enterprises (as discussed in the article) include their involvement in electoral process interferences, authoritarian collaborations, the establishment of oligopolies, shadow states, etc., to the detriment of equitable development (within rentier states), and a salience of inequities within the global natural resource trade.

Strategic Management: Factors Influencing (De) Centralization in Multinational Corporations Operating in Slovakia

In the field of (de)centralization of companies, there is a need to explore the factors that influence decision-making processes and organizational structures. However, limited research has focused specifically on the Slovakian business environment, warranting further investigation. This article aims to examine the relationships between ownership structure, the establishment of direct foreign equity participation (DFEP) and company size in relation to aspects of (de)centralization in a select group of companies in Slovakia. The aim is to highlight the importance of the (de)centralization problem. The researchers employed statistical methods to analyse the data, including the nonparametric Kruskal‒Wallis test and post hoc analysis using the pairwise comparison post hoc test. These tests were applied to identify statistically significant differences between the chosen factors and individual variables relating to (de)centralization. The findings indicate that the establishment of DFEP significantly influences (de)centralization in areas such as the purchase of materials/goods, production/planning/provision, marketing planning, sales to the end customer and the filling of managerial positions. Ownership structure was also found to significantly influence (de)centralization with regard to the purchase of materials/goods, production/planning/provision and marketing planning. Similarly, company size seems to play a role in strategic management and production/planning/provision decisions. This study contributes to the existing body of knowledge by offering insights into the specific context of (de)centralization in the Slovakian business environment. The use of statistical analysis methods enhances the rigor of the findings. The findings provide practical implications for decision-making processes, resource allocation strategies and organizational design. This research fills a gap in the literature by focusing on the relationships between ownership structure, the establishment of DFEP and company size within the context of (de)centralization. This study serves as a foundation for future research in this field, guiding further exploration and understanding of the factors affecting (de)centralization in Slovakia.

다양한 유형의 지리적 거리가 중국진출 다국적기업 자회사의 CSR 활동에 미치는 영향

다양한 유형의 지리적 거리가 중국진출 다국적기업 자회사의 CSR 활동에 미치는 영향

Вплив прямих іноземних інвестицій на цифровий розвиток

The transition to the digital economy has become a priority for the government policy at all levels in almost all the countries. The acceleration of the measures for the digital development contributes to increasing competitiveness in all sectors of the national economy, creates new opportunities for business and society, as well as new ways of accessing foreign markets. The purpose of the study is to analyze changes in the FDI priorities under the influence of the activation of national and regional strategies for accelerating digital development and to develop recommendations for stimulating FDI in the digital development of the national economy. It is substantiated that modern investment policy creates competitive advantages for attracting investments from digital MNEs, responds to global challenges and crisis phenomena and provides strategic opportunities for digital development for the country, including preparation for changes in investment determinants and investor profiles in other industries that implement digital technologies into the global value chains. It has been proven that the existing strategies are not comprehensive and effective, as they should include investments in infrastructure, in digital companies and in the digitalization of the economy as a whole. Foreign direct investment has been found to play a crucial role in accelerating digital development. The digital economy has already begun an active transformation of the international operations of multinational corporations, which consists in changing the motivation when choosing the main directions of their FDI. It is recommended to coordinate digital development strategies with all areas and policies of the state to create a transparent regulatory framework for the FDI in the digital development, mitigating the negative impact on social, environmental and economic consequences of the digital transformation.

The Moderating Effect of Cross-Cultural Psychological Adaptation on Knowledge Hiding and Employee Innovation Performance: Evidence from Multinational Corporations

This study explores the effects of three dimensions of knowledge hiding: evasive hiding (EH), rationalized hiding (RH), and playing dumb (PD), on employee innovation performance in multinational corporations. Additionally, the moderating effects of cross-cultural psychological adaptation on the above relationships are analyzed. In terms of the empirical analysis, corresponding assumptions were investigated with a sample of 273 respondents from Chinese multinational corporations in different industries and regions. The research findings show that EH and PD significantly negatively impact employee innovation performance in multinational corporations. In contrast, RH has a significant positive impact on the latter. Notably, cross-cultural psychological adaptation weakens the negative relationship between EH, PD and employee innovation performance, while strengthening the positive relationship between RH and employee innovation performance in multinational corporations. This study provides a new perspective for understanding the internal relationship between knowledge hiding and employee innovation performance. It comprehensively reveals the impact mechanism of knowledge hiding on innovation performance at the individual level by exploring the boundary effect of cross-cultural psychological adaptation. This study expands the literature on knowledge management and innovation on the theoretical side. On the other hand, this study suggests that RH may improve the employee innovation performance of multinational corporations, and provides a potential research direction for predicting the positive consequences of employees’ knowledge-hiding behavior. On the management side, this study offers practical guidelines for the human resource management of multinational corporations. Managers can promote cooperation and innovation among colleagues with cultural differences in home and host countries by improving employees’ cross-cultural psychological adaptability, thus improving employee innovation performance.

The impact of social media technologies on organization cultural intelligence and new product development in international markets

PurposeThe study examines the role of social media technologies (SMTs) as a driver of organization cultural intelligence (OCI) and new product development (NPD) capabilities, and how the complementary effects of these capabilities contribute to multinational corporations (MNCs)’ performance. Further, the study investigates the capability–performance relationship under conditions of high and low market and technological turbulence.Design/methodology/approachA quantitative survey method was implemented, with the data provided by senior marketing managers employed in MNC regional offices. The proposed model was tested using structural equation modeling and multi-group moderation analysis, and fuzzy-set qualitative comparative analysis (fsQCA).FindingsThe results indicate that SMTs support the development of OCI and NPD capabilities, which in turn contribute to MNC regional performance. A high level of technological turbulence only weakens the relationship between OCI and performance.Research limitations/implicationsThe results suggest that OCI contributes to MNCs’ performance, by deploying social media information and complementing the organization’s NPD capability under a specific environmental context.Practical implicationsThe paper offers practical recommendations to MNCs on social media use when developing and launching new products in different regional markets. MNCs need to recruit culturally intelligent managers, who consider the level of market and technological turbulence when combining several types of capabilities.Originality/valueWithin the dynamic marketing capabilities literature, this is the first study to incorporate and reliably measure cultural intelligence capability. The research offers empirical evidence that OCI and NPD capabilities are necessary to achieve superior MNC performance and depend on the level of market and technological turbulence.

Colonialismo na América Latina? Uma perspectiva pós-colonial sul-sul nas relações humanas de uma empresa brasileira na Bolívia

Abstract The case addresses the situation experienced by José, an executive, HR manager of a Brazilian oil and gas company in Bolivia. José sustains his work from a unique humanistic standpoint. However, when starting his job, he gets scared of a cultural diagnosis that occurred the previous year. The employees revealed a negative view of Brazil and the company, related to a history of domination. Looking at a Bolivian engineer’s drawing during the interviews, José could see this representation. One participant sketched a Bolivian employee as a boy imprisoned by chains to a ruthless adult representing the Brazilian managers. How can one react to a drawing with such a clear expression? For the first time, José saw himself in the oppressor’s shoes. As a Brazilian, he was used to feeling what it is to be in a subordinate role. Now, he is challenged to create an action plan to deal with the situation, even facing a headstrong boss like the adult’s depiction. He wondered what solution could make a difference for everyone involved and reduce this asymmetry. Thus, the case allows students to have a critical view of the subalternity involved in cultural differences in the international operations of multinational corporations. Furthermore, students can propose solutions for relational issues in the international field between the organization and employees within the South-South axis.

Innovative Foreign Direct Investment Policy: Latvia’s Case

As globalization accelerates, the influence of innovative foreign capital on economic development and employment level becomes more significant. However, the impact of FDI on the standard of welfare and economic development is controversial. The demand to promote or target innovative FDI has increased as it has been seen as an innovative tool to stimulate regions’ economic growth or intervene in economic structure changes by orienting it in the most favourable way for the host country. Interest in attracting foreign direct investment has increased since the 1980s as it is one of the external financing sources for both developing and developed countries. However, scientists still argue whether the impact of foreign capital on economic growth is positive or negative. Some researchers state that inward FDI is limited to a short-term positive impact. In contrast, others maintain that the performance of multinational corporations cannot harm the host country at all, and FDI only positively influences economic growth. Modern economic science questions whether it is worthwhile for the state to interfere with the market and stimulate the identified target business sectors with the help of innovative FDI policy. In this way, even significant market flaws are revealed, and some companies are doomed to fail. The benefits of FDI are obvious: the creation of new jobs, «know-how», and the tendency to increase exports. In this sense, the host country should attract specific MNCs motivated towards expanding business through research and development. The article proposes a targeted, complex, innovative FDI policy while applying the ANP method. The methods applied in this research include Analytic Networking Method based on the SWOT approach. The ANP has been chosen as a qualitative method based on the experts’ opinion, allowing determining the best or several alternatives. The findings & value added of the study demonstrated that to gain a competitive advantage, Latvia should attract more innovative FDI into the service business area, followed by manufacturing. The research contributes to the internalization theory while emphasizing the importance of promoting innovative FDI.

Understanding a Big Elephant and its Small Chains: SWOT Analysis of Pakistan’s Economy

‘What we Foreign Direct Investors need is a level playing field.’ This was claimed by the Chief Executive Officer (CEO) of a multinational corporation (MNC) operating in Pakistan for more than 50 years, on two separate occasions during 2015-18. This idiom motivated the authors to understand business nuances associated with Pakistan’s economy not being captured by indices such as the ‘Ease of Doing Business Index’ (EDBI) and ‘Global Competitiveness Index’ (GCI) primarily because of their measurement in quantitative terms. By conducting a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of the country’s business environment, with the help of in-depth interviews with the CEOs of 19 MNCs and three national corporations (NCs), this study tries to capture some of these nuances. The respondents, based on their availability, were drawn from ten different industries. Based on the analysis, it can be inferred that ‘enduring’, ‘flimsy’, ‘enormous’ and ‘manageable’ are the four words which may be used to define the strengths and weaknesses associated with the opportunities and threats to Pakistan as a market. 

The coevolution of international scope and technological knowledge in MNCs

We explore coevolution in the growth of technological knowledge and international scope in multinational corporations (MNCs). We focus on technological knowledge and international scope because they are core to the performance of MNCs and because research has found that technological knowledge stimulates international growth, while internationalization stimulates technological growth. We address this seeming paradox by consolidating arguments about their growth under the coevolutionary umbrella. In so doing, we advance a novel coevolutionary argument: technological knowledge and international scope are both outcomes of interdependent, long-term strategic decisions aimed at optimizing the complementary effects of both dimensions on MNC performance. Accordingly, we develop a formal model of the dynamic processes by which technological knowledge and international scope coevolve. Our dynamic optimization model identifies four coevolutionary trajectories: (1) a trajectory in which growth in technological knowledge and international scope occur simultaneously; (2) a trajectory that has simultaneous reductions in both; (3) a trajectory in which technologically rich but domestically oriented firms expand international scope but reduce technological knowledge; and (4) a trajectory in which highly internationalized but technologically lagging firms expand technological knowledge but reduce international scope.