Overseas Units Research Articles

The double-edged sword of ethnic similarity for expatriates

Identifying employees to represent headquarters (HQ) effectively in overseas units is a management challenge faced by all multinational corporations (MNCs). To date, management of this type of expatriate employees has accorded a central role to culture, such as understanding cultural differences, facilitating cultural adaptation and adjustment, and cultivating cultural intelligence. Although culture is a critical factor in ex-plaining expatriates’ experiences, identity offers an alternative angle to reveal the challenges that occur when expatriates interact with host country employees. In this article, we introduce ethnically similar expatriates – a sub-category of expatriates who share an ethnicity with host country employees – to showcase the role of identity, especially the interpersonal dynamics associated with ethnic similarity.

Survey on trainees' perception on creation of special interests within the domain of general surgery in Sri Lanka: is it the way forward?

Introduction Sri Lankan surgical training curriculum underwent a major revision in 2012 with the introduction of special interests within the domain of general surgery. The main employers are yet to recognize this transformation into the employment structure. In such a setting, evaluation of the trainees' perspective is important as their careers may be negatively affected. Methods A pre-tested questionnaire was sent electronically to all fiftyone general surgery senior registrars (SR) who started their post-MD general surgery training after February 2012. Gathered data were reviewed during an observational study. Results Among twenty-four (47%) respondents, eight (33%), seven (29%) and nine (38%) were second years SRs, SRs in overseas training and acting consultant surgeons (aCS) respectively. Four, nine, five, four and two trainees have declared upper-gastrointestinal surgery, coloproctology, hepato-pancreaticobiliary surgery, breast surgery and endocrine surgery. Eight (33.3%), thirteen (54.2%) and three (12.5%) had their speciality training at a university unit, a ministry unit and an overseas unit respectively. Eleven (46%) believed they had adequate special interest training during local or overseas training. Six out of nine (66.7%) colorectal trainees believed they had adequate special interest training during local training compared to other categories. Trainees who had speciality training in university units (7/8) were more satisfied compared to those in the ministry units (3/13). Three (12.5%) said their employer recognizes this system and two (8.3%) believed that they can practice the special interest in future. Seven (29%) each believed that there are career benefits and patient care improvement with the new system but only three (12.5%) believed it is better than the previous one. Five of nine aCSs who have completed training thought they would opt for general surgery without a special interest if the option was available compared to SRs on training (1/15). Discussion and conclusions Colorectal speciality and trainees selected to university units were more satisfied with the local special interest training circumstances. Non-recognition of the new system by the employer was a major concern for them. A limited minority of trainees believed to have the opportunity to function with a trained speciality. Trainees doubted personal career benefits or patient care improvement from this change and this as a better system overall.

Ethical management and leadership: a conceptual paper and Korean example

Business ethics have become an important topic globally for both policy-makers and businesses. This paper first discusses the conceptual framework for business ethics followed by ethical management (EM) and corporate social responsibility (CSR) as well as relevant theories. Within this conceptual framework, Korea is used as a country context as to the development of EM and CSR. An important example of an ethical scandal is the major steel manufacturer, POSCO as it was held up as an exemplar and role model of ethical management. However, in 2015, it faced allegations that the engineering and construction overseas unit chief of its Vietnamese subsidiary created a slush fund by overstating payments to Vietnamese contractors. This conceptual paper discusses the factors that created this situation referring to the theory of connection. It locates the case in the EM and CSR literature and analyses what went wrong and what the parent company could have done to prevent this from happening.

Managing Scarcity and Ambition in the NZ ETS

The fundamental purpose of an emissions trading system (ETS) is to constrain emissions and enable the market to set an emissions price path that facilitates an effective transition to a low-emissions economy. In a conventional ETS, the emissions constraint is defined by a cap (a fixed limit) on tradable, government-issued emission units together with a quantity limit on any external units allowed in the system (e.g. via an offsets mechanism). Essentially, an ETS cap underpins the ambition, cost-effectiveness, distributional implications, and credibility of a jurisdiction’s approach to decarbonisation. From 2008 to mid-2015, the New Zealand Emissions Trading Scheme (NZ ETS) broke from convention by linking to the global Kyoto cap without its own limit on domestic emissions. NZ ETS participants met compliance obligations using unlimited overseas units at low prices and faced little incentive to reduce their own emissions. The NZ ETS delinked from the Kyoto market in mid-2015, creating uncertainty over the future of domestic unit supply and an efficient price path for domestic decarbonisation. This working paper, which evolved under Motu’s ETS Dialogue process from 2016 to 2018, explores key considerations for ETS cap setting and proposes the design for a cap on units auctioned and freely allocated in the NZ ETS. The recommendations focus on issues of cap architecture rather than ambition. The proposed cap is defined in tonnes of emissions per year, fixed for five years in advance, extended by one year each year, and guided by an indicative ten-year cap trajectory. The fixed cap and cap trajectory need to reflect consideration of New Zealand’s domestic decarbonisation objectives, international targets, mitigation potential and costs in both ETS and non-ETS sectors, and prospects for cost-effective investment in overseas emission reductions. Two companion working papers address how the choice of cap will interact with decisions on ETS price management mechanisms and linking to overseas markets. The three working papers elaborate on an integrated proposal for managing unit supply, prices, and linking in the NZ ETS that was presented in Kerr et al. (2017).

The New Zealand Emissions Trading Scheme De-Link from Kyoto: Impacts on Banking and Prices

The New Zealand Emissions Trading Scheme (NZ ETS) presents an opportunity to compare the theory of linked emissions trading with practice. From 2009 until late 2012 New Zealand was linked to the Kyoto market and there was no indication that this link would be broken. In November 2012 the New Zealand government announced that it would not proceed with the second commitment period of the Kyoto Protocol and future linking became uncertain. This de-link was confirmed by the government in December 2013 and it was announced that it would take effect from 31 May 2015. After this date overseas Kyoto units were no longer acceptable for surrender within the NZ ETS. We find that prices within the NZ ETS behaved as theory would predict. In a climate of certain linking, from 2011 when New Zealand began buying overseas units to surrender, New Zealand Unit (NZU) prices were roughly equal to Kyoto prices. Once the possibility of a future de-link emerged, NZU and Kyoto prices decoupled. NZU prices traded at a price reflecting their anticipated future scarcity – for New Zealand as a buyer of units this implies that NZUs traded at a higher price. In anticipation of the coming de-link NZ ETS participants banked (almost) all of their NZUs for future use and used cheap Kyoto units to meet (almost) all of their current obligations. The long delay between the announcement and implementation of de-linking led to a large bank of NZUs.

How Psychological Resistance of Headquarter Engineers Interferes Product Development Task Transfer to Overseas Units

Abstract: There are very few existing studies that focus on internal headquarter organization in relation to knowledge transfer or innovation in overseas units. It is almost as if there is an implicit assumption that headquarter members ought to be proactive in transferring knowledge or information to overseas units. Thus, this study investigates bottlenecks of process in transfer of product development tasks to overseas units, with particular focus on psychological resistance of headquarter engineers. A detailed case study of a automobile supplier revealed following problems that were faced by headquarter engineers: lack of motivation to business in emerging markets, perception gaps about original developers, and a high turnover rate of local engineers. Next, how psychological resistance of headquarter engineers, which originate from these problems either directly or indirectly interferes with transfer of development tasks, was explained by two paths, that is, decline in motivation toward information sharing and technical advices, and lack of communication channels. To promote overseas expansion of development tasks, which is necessary for emerging market strategies, it will be critical to manage causes and effects of psychological resistance of headquarter engineers.Keywords: global product development, task transfer, psychological resistance of headquarter engineers, emerging marketsIntroductionCases of firms trying to expand their product development tasks abroad have been increasing since late 2000s. A number of major firms, including Toshiba, Fuji Film, Clarion, Hitachi, Toyota, Honda, and TDK, have sought ways for speedy response to emerging market needs by establishing product development units onsite and increasing employment of local engineers. 1 Furthermore, according to Survey of Overseas Business Activities, conducted by Ministry of Economy, Trade, and Industry in July 2013, expenditure ratio on overseas research and development for 2012 was a record level of 4.4%, which was highest ever. From these facts, Prahalad and Doz (1987) and Bartlett and Ghoshal's (1989) observations that Japanese business are characterized by products standardized by headquarters that are expanded overseas in a globally integrated manner are becoming less and less applicable to current businesses. This is because need for dealing with diversified overseas markets and number of overseas development units to meet that needs have been increasing for products deployed overseas.In most cases, development functions intended for overseas expansion are limited to minimal tasks necessary to promptly respond to local customers' various and heterogeneous needs.2 This is because process of transmitting each of local customers' demands to requesting applied development works, and waiting for responses are inadequate for emerging market businesses that are highly competitive and require more speed than usual. In other words, there has been a shift of dividing development tasks, which used to be concentrated on between advanced technology development and standard product development at headquarter side, and tasks necessary for locally adapted design of existing products at local units.3However, although a number of firms are challenging overseas expansion of product development tasks, it seems difficult. The author conducted field researches of multiple firms on this topic from 2008 to 2014, and found out that both in local units and headquarters have complaints and dissatisfaction toward each other. For instance, in local units often express dissatisfactions such as the only concerns of expatriates are decisions and evaluations made by headquarters, engineers in headquarters do not share information timely, and they would not understand, no matter how hard we explain issues of local markets to them. …

Ethnic Identity Confirmation in Knowledge Transfer between Expatriates and Host Country Employees

Effective knowledge transfer between headquarters and overseas units has been a challenge for MNCs. Expatriates are often expected to facilitate this task. Since there are many challenges in workin...

Central Board of Direct Taxes Sets Up Income Tax Overseas Units in Its Bid To Join Global Efforts To Increase Transparency in International Financial Matters

The author considers steps being taken in India to address the issue of so-called “black money” and other tax avoidance schemes.

Surgical management of gastroschisis in North Queensland from 1988 to 2007

To review outcomes of gastroschises originating in North Queensland and repaired in the neonatal centre in Townsville from 1988-2007, and compare these outcomes with published data from other centres. A retrospective chart review of outcomes after primary operative repair (POR) with wound closure in fascial layers in the theatre, primary non-operative repair (PNOR) with apposition of the umbilical cord and adhesive dressing in the ward, secondary repair (SR) after a silo, and complex repair (CR) of cases with obstruction, perforation or atresiae. Epidemiological data of babies originating in North Queensland but managed in Brisbane were secured from Mater Mothers' Hospital and the Royal Hospital for Children. Fifty cases were treated in Townsville: 16 by PNOR, 22 by POR, 6 by SR and 6 by CR. Outcomes of uncomplicated cases treated by PNOR, POR and SR were similar. Outcomes of complicated cases after CR were significantly worse. No significant differences were found between PNOR in Townsvillle and published outcomes after SR from four overseas units. No differences were detected in outcomes of inborn and outborn babies, those delivered by vaginal or caesarean birth or between indigenous and non-indigenous babies. Three (6%) died. Gastroschisis is increasing in North Queensland, particularly in younger mothers. The incidence is 2-3 times higher in indigenous mothers. No significant differences were found between PNOR and other techniques for uncomplicated cases. PNOR avoids the use of theatre and staff, reducing delay and cost, and the need to transport a sick baby.

Training in laparoscopic renal surgery, in a few weeks of intense exposure

Objectives Laparoscopic renal surgery has only recently become popular in the UK and, still, only a handful of pediatric urologists are offering the laparoscopic approach to their patients; therefore, there are only limited places available for training in this discipline. In this institution, which is a major tertiary referral center for pediatric urology having four consultants, one urologist specializes in laparoscopic renal surgery and about 50 laparoscopic ablative renal surgical procedures are performed annually. The aim of this study was to determine the effectiveness of the training provided, for three trainees, in light of the complexity of the ablative procedures performed. Patients and methods Patients who required laparoscopic ablative renal surgery from June 2003 to May 2004 were identified from the prospectively maintained database and data were analyzed. During this period of 12 months, 49 operations have been performed laparoscopically. There were three trainees, A, B and C, who joined the mentor, at different times, for a continuous period of 6, 12 and 6 weeks, respectively. The training was one to one and, at an appropriate level of expertise, the trainees were allowed to perform operations independently; they continued to do so after returning to their units. Results There were 22 males and 27 females, age ranging from 8 months to 16 years (mean 3.6 years). There were 25 nephrectomies, 23 via the prone retroperitoneal (PRP) approach and two via the transperitoneal (TP) approach; the mean time taken was 70 min. There were 12 nephroureterectomies, six via the PRP, three via the TP, and the other three via the lateral retroperitoneal (LRP) approach; the mean time taken was 100 min. There were 10 heminephroureterectomies (six upper pole and four lower pole), six via the PRP, three via the TP and one via the LRP approach; the mean time taken was 160 min. Of two bilateral nephrectomies one was via the PRP and one the TP approach, and the mean time taken was 170 min. The mean time to discharge for nephrectomy was 7 h, and for nephroureterectomy, heminephroureterectomy and bilateral nephrectomy 21, 23 and 43 h, respectively. Trainee A had been in pediatric surgery for 4 years and during a period of 6 weeks he assisted in five operations, but did not get the opportunity to perform independently. Trainee B had been in pediatric surgery for 13 years and during a period of 12 weeks he assisted in nine operations and performed three. Trainee C had been in pediatric surgery for 20 years and during a period of 6 weeks he assisted in five operations and performed one. Since returning to their overseas units, trainee B and trainee C have successfully performed two nephrectomies each. Conclusion Retroperitoneoscopic renal surgery is within the grasp of any experienced urologist or urology trainee. With intensive exposure and one-to-one mentoring, 6–12 weeks would be sufficient to achieve adequate competence and confidence to perform a prone retroperitoneoscopic nephrectomy.

The Changing Japanese Multinational: Application, Adaptation and Learning in Car Manufacturing and Financial Services*

ABSTRACT The combination of increasingly international operations, the continuing domestic recession, and the gradual opening of the Japanese economy to foreign investment might be expected to change many features of Japanese multinational companies. In particular, the level and mode of central control of overseas units, especially their reliance on expatriate managers, could change as firms become more willing to use foreign subsidiaries as sources of innovation and learning rather than as delivery pipelines for domestically designed and developed products. These changes are more likely in sectors dominated by non‐Japanese firms, such as international financial services. Interviews with managers of 14 Japanese manufacturing and financial service firms in the UK and Japan confirmed substantial differences in their internationalization patterns in the 1990s, both between and within sectors. Car manufacturers in particular invested major resources in transferring significant features of their domestic operations to UK units, usually with expatriate managers, and one was investing in developing an international cadre of managers.In the case of banks and other financial service companies, the continuing banking crisis in Japan and limited profitability of their European operations, had stimulated a variety of responses. While some had simply withdrawn from serving non‐Japanese clients, or withdrawn altogether from Europe, others were trying to develop new skills and approaches to compete effectively with established Anglo‐Saxon firms at the same time as refocusing on Japanese customers to improve profitability. However, the sharply contrasting labour market practices in London and Japan made it difficult for many banks to develop firm specific skills that would enable them to become competitive in markets currently dominated by western banks. This raises general questions about how multinational companies coordinate skills and careers across differently organized skill formation and control systems.

Level of Control, Staffing Policy, and Training Needs for Overseas Units of Multinational Corporations: An Integrative Approach

This paper suggests an integrative model in which MNCs combine staffing policy with training requirements given the level of control over foreign operations. The main premise of the paper is that different levels of control need determine the type of personnel and the extent of training required for managing foreign operations. At the highest level of control need, expatriate managers are provided with extensive cultural training. Conversely, at the lowest level of control need, host country nationals are given minimal functional training. When the control needs are moderate, firms can select either expatriates or host country nationals. Since the costs incurred in extensive functional training for host country nationals are usually greater than those for expatriates who require only a minimal level of cultural training, MNCs tend to prefer expatriates to host country nationals.

Between autonomy and control: Expatriate managers and strategic IHRM in SMEs

Much research in the relatively new area of International HRM has concentrated on the problems of expatriates and expatriation issues (Scullion, 1995; Brewster & Harris, 1999). These are often related to concerns that they face in working in a foreign environment; particularly, such issues as cultural difficulties and other factors associated with assignment failure (Harzing, 1995; Forster, 1997). However, there is very little research on what expatriates do as managers in a foreign context, and how this relates to overall business and HRM strategy in the organization as a whole. This article is a small contribution to this growing debate, and examines the strategic relationship between the HRM department at national HQ and how its strategy and policy is translated by expatriates at subsidiary levels in a relatively small organization operating in 37 countries. The article focuses most particularly on the tensions between local autonomy of the organization's various overseas units and the attempts by its headquarters to achieve control. We particularly examine the role of HRM in attempting to find this balance. © 2001 John Wiley & Sons, Inc.

Accident Characteristics on Low-Volume Roads in Indonesia

Road accident statistics from the Indonesian Traffic Police Headquarters for the last decade show that there have been 10,000 fatalities on average per year. This situation has become a serious national issue. Since 1989 the Overseas Unit of Transport Research Laboratory has been involved in a collaborative research study on road safety with the Institute of Road Engineering in Bandung, using the Microcomputer Accident Analysis Package (MAAP). A pilot study to implement the MAAP system was set up in four regions. The characteristics of road accidents on selected low-volume roads are described and processes for identifying contributory factors at hazardous locations are introduced.

An analysis of the intra-firm sales activities of Japanese multinational enterprises in the United States: 1977 to 1989

This paper examines the activities of the largest Japanese multinational enterprises (MNEs) operating in the United States by looking at data on exports, imports, and intra-firm trade between the Japanese subsidiaries in the United States and their parent and other foreign groups. It also examines how much of the domestic sales in the United States are accounted for by local production of the Japanese subsidiaries. Sales data provide an indication of the advantages of being multinational, which are mirrored in the growth of the post-investment sales of overseas units (both manufacturing and non-manufacturing). Data on the flows and stocks of foreign direct investment (FDI) represent the initial decisions to undertake FDI and largely ignore the learning effects of having overseas production.

The internationalisation of research and development by Japanese enterprises

AbstractEvidence indicates that Japanese Multinational Enterprises (MNEs) have established a large number of R&D labs outside of Japan in recent years. It is suggested that these units play particular roles in global‐innovation strategies, which are themselves a key element in global competition. The first role played by such overseas units is to provide basic research inputs, that help the Japanese parent companies to derive the basis for a new generation of products. It appears that this role is especially prominent in Japanese MNEs, who are notably responsive to the high‐quality science‐base in certain countries. The second role of overseas R&D in global‐innovation strategies is to develop specific variants of new products that fully respond to distinctive consumer needs, and production conditions, in important national (or regional, e.g. European) markets.

Mass transit in developing cities

AbstractUsing case study material, this paper examines the relative merit of metros and high performance bus systems in use in Third World cities. It demonstrates that buses with suitable priority measures are capable of meeting high passenger demands. The paper also shows that despite the poor financial performance and other shortcomings of metros, they can yield a respectable economic return. The paper draws on studies undertaken as part of the research program of the Overseas Unit of the Transport Research Laboratory.

The Queensland Liver Transplant Programme: the first two years

Orthotopic liver transplantation began in Brisbane in January 1985. During the first two years of the programme an assessment committee evaluated 55 patients (38 adults, 17 children). Patients were either accepted for transplantation, rejected as unsuitable or deferred for elective reassessment. All of the 10 adults who were rejected for transplantation because they had "too advanced" disease died within four months of assessment. Six children who were accepted for transplantation died before a suitable donor liver could be found. In the first two years, 21 orthotopic liver transplantations were performed on 18 patients (adults, 13 patients; children, five patients). Fifteen of 21 grafts were procured from within Queensland. Twelve (67%) patients are alive at three to 23 months and all have been discharged from hospital. Deaths in adults were due to sepsis (three patients), aspiration pneumonitis (one patient), rejection and hepatic artery thrombosis (one patient) and the recurrence of a hepatocellular carcinoma five months after discharge from hospital (one patient). Two patients underwent a second transplantation procedure because of chronic rejection at four months and at 11 months, respectively, after the initial operation. One patient received a second transplant for primary graft failure at four days after the operation. A scoring system which considered the presence of pre-operative patient factors, such as coma, ascites, malnutrition and previous abdominal surgery, partly predicted the operative blood loss and patient survival. In conclusion, orthotopic liver transplantation is being performed in Australia with survival rates that are comparable with those of established overseas units.

Road accidents in developing countries

By the early 1970s countries of the Third World were becoming increasingly aware that they faced a growing road safety problem. In 1972, following numerous requests made by developing countries for aid and guidance in the road safety field, a small research team was formed within the Overseas Unit of the Transport and Road Research Laboratory. The aim of this team was to undertake research in Third World countries with a view to establishing the nature and extent of their traffic accident problems and, in the longer term to assess the effectiveness of remedial measures. This paper describes some of the major findings of this research team.

The industrial special library universe—A “base line” study of its extent and characteristics

AbstractThe “heart” of the industrial technical library universe is encompassed in the library systems of 311 of FORTUNE'S “500” Corporations. Of the 30+ variables used to delineate these 311 systems, the number of professional librarians, libraries, and corporations were most important. A “Library Penetration” ratio was evolved from the three measures. To meet the budget‐setting need for cross‐industry comparison, FORTUNE'S 29 industry classifications were used, with Chemicals and Petroleum Refining most important. Systems including overseas units, or internationally operating systems, were statistical leaders in every measure. Twenty‐four pairs of measures were found to have a correlation (R) of 0.80 (or higher) with significance R of 0.00001. How the re‐maining 189 of FORTUNE'S “500” operate without formal information services requires study.