Performance Of Multinational Corporations Research Articles

CSR Evolution in Emerging Multinational Corporations Operating in Developed Countries

The topic of corporate social (and environmental) responsibility (CSR) has been extensively addressed in the academic literature, mostly in the context of multinationals from developed countries. D...

The CSR Challenges in the Clothing Industry

The aim of this paper is to study the clothing and textile industry through the prism of the CSR. First of all, it investigates the ways in which companies of this sector deal with the social responsibility issues that are specifically important to the characteristics of the fashion industry. Secondly, the motivators of implementing CSR in the textile and clothing business are identified and analysed. Thirdly, the CSR practices of H&M Hennes & Mauritz AB, a wellknown multinational corporation operating in the sector of fashion, are discussed in order to illustrate the theoretical review with the case study approach.

Corporate Social Responsibility of Multinational Corporations and the Development of the Niger Delta Region of Nigeria

One of the key objectives of Corporate Social Responsibility (CSR) is to forge a harmonious relationship between corporations and society. But with the spate of youth restiveness and militancy in the Niger Delta region of Nigeria it is not clear that the CSR activities of multinational corporations (MNCs) in the region have yielded the desired effect. This study, therefore, set out to explore the effect of the corporate social responsibility activities of MNCs on the development of the Niger Delta region of Nigeria. Primary data were collected from a total of three hundred and seventy six (376) respondents judgmentally drawn from four states in the region. Data generated were analyzed using the multiple regression model. Interview method was also used. Findings showed that the multinational corporations operating in the Niger Delta region actually carried out some CSR activities and that those activities contributed to the development of the region. However, residents interviewed felt that the massive environmental pollution caused by the operations of the MNCs in the region had practically eclipsed the CSR activities of the multinational corporations. It is recommended that the MNCs should show greater sensitivity to environmental issues and, in particular, adopt international best practices in their oil exploration and production activities in the region.

The transfer and diffusion of HRM practices within MNCs: lessons learned and future research directions

The transfer and diffusion of human resources management (HRM) practices within the geographically dispersed operations of multinational corporations (MNCs) is receiving heightened attention, in particular because it is believed to significantly influence the performance and competitiveness of MNCs and their subsidiaries. However, as a review of the current body of literature suggests, further work is needed if we are to more fully understand the underlying process through which HRM practices are transferred and diffused or provide more holistic guidance with practitioner relevance. In this article, the authors review and synthesize the extant literature on the transfer and diffusion of HRM practices in the MNC context. Five salient themes or questions that prior research attempts to address are identified and critiqued. A general guiding framework is proposed as are possible avenues for future research.

During Global E-business Environment Measure Expatriate Satisfaction for Chinese Subsidiaries Using the Ordered Weighted Averaging

With the fast growth of Chinese market, many multinational corporation enter into China to join various businesses. Thus, more and more was dispatched to China, how to improve them work performance become big problem for each MNCs. Expatriate satisfaction is a really important factor to job performance. The objective of this paper is to find out the criteria that affect to and relative importance for expatriates to be send into Chinese subsidiaries firms. For this study we use AHP, PCA and OWA to measure satisfaction. From the results we can see, for asian countries (Japan and Korea) family and organizational factors are more important to their satisfaction, but for we stern country (America) personal factors are important to them. Also form case study, combined with AHP, PCA and OWA, we give subsidiaries a scientific method to measure the expatriate satisfaction. We expect that the result of this study can help in improving the performance of multinational corporations.

Knowledge Integration within Multinational Corporations and Organizational Performance

Previous research has highlighted that multinational corporations (MNCs) can improve their competitive advantages by effectively integrating knowledge which are acquired from their headquarters and subsidiaries. Knowledge integration can be facilitated when headquarters and subsidiaries are well coordinated to continuously exchange useful knowledge and frequently update the information of markets, processes, and other business practices. Despite of its significance, there have been few empirical studies which investigate how MNCs can effectively coordinate their headquarters and subsidiaries to facilitate the greater knowledge integration. Furthermore, few studies have empirically investigated whether the knowledge integration will help enhance MNCs’ organizational performance. To fulfil the research gap, this study empirically examined the role of the coordination mechanisms of MNCs in promoting knowledge integration between headquarters and subsidiaries, and the influence of knowledge integration on the innovative and strategic performance of MNCs. This study considers the following two coordination mechanisms for MNCs: structural and formal mechanism, and informal mechanism. The structural and formal mechanism of a MNC includes the following two indicators: network density and centralization. As the indicator of the informal mechanism, the strength of the informal relations of employees is considered. This paper developed a conceptual framework which shows the positive relationship between the coordination mechanisms, knowledge integration and organizational performance of MNCs (i.e. innovative capability and organizational competitiveness in this paper), and established relevant hypotheses. A survey method was employed to test the hypotheses. A mediated regression analysis was conducted for hypothesis testing. The results showed that the MNCs in Korea can integrate useful knowledge globally among headquarters and foreign subsidiaries if they establish a dense network and have strong relationships with each other, and the degree of centralization in the decision-making of multinational corporations is positively associated with knowledge integration between the headquarters and subsidiaries. The finding also showed that MNCs in Korea can improve the organizational competitiveness and innovative capability by effectively integrating knowledge between headquarters and foreign subsidiaries. This paper may provide the managers of international firms with significant strategic insights into how international firms can effectively integrate useful knowledge, and how this knowledge integration can help them to reinforce their organizational competitiveness.

The Impact of Formal and Informal Distance on Gender Equality Approaches: The Case of a British MNC in Saudi Arabia

AbstractThis study explores the forces that promote and hinder gender equality efforts of a multinational corporation (MNC) operating in the Middle East. Specifically, we draw from a case study to document the formal and informal pressures exerted on a British MNC operating in Saudi Arabia to better understand the multiple forces that influence gender equality approaches in the host country. Our findings suggest that while formal institutions such as the legal requirements and localization policies support gender equality, informal forces that are rooted in the cultural norms and traditions are formidable in hindering such efforts and in reinforcing the status quo. The insights generated from our study have the potential to inform public policy makers and organizational decision makers to locate the right policy tool to promote gender equality. © 2016 Wiley Periodicals, Inc.

The Refinement and Validation of the Social Response Scale: The Case of Multinational Corporations Operating in Tunisia

Satisfying multiple stakeholder expectations and, in some cases, stakeholder issues is perceived as a major challenge the companies face. Despite this challenge, corporate social response activities have not been well documented in the empirical literature and have so far attracted relatively limited attention from researchers interested in the field (e.g., de la Cruz Deniz-Deniz, 1999; de la Cruz Deniz-Deniz & Garcia-Falcon, 2002). One of the main causes of this situation is closely related to the lack of a scale for measuring the social response activities among companies. In light of this gap in the corporate social response literature, the main objective of this study is to refine and validate the psychometric properties of a social response scale and to create a scaled-down version suitable for companies, and in particular for multinational corporations (MNCs). The refined scale is based on the prior literature and administrated to a sample of 251 subsidiaries operating in Tunisia. The scale has four dimensions. In quantitative analyses these dimensions highlight high reliability and satisfactory validity. Research contributions are provided based on the study findings. Limitations are also presented and discussed along with suggestions for research. DOI: 10.15458/85451.15

Doing business in India: cross-cultural issues in managing human resources

Purpose– Given the increasing global significance of Indian markets, multi-national corporations (MNCs) are keen to do business here; however, cross-cultural issues can be barriers in managing human resources (HR) in international businesses. The purpose of this paper is to understand how MNCs can successfully do business in India, with special reference to cross-cultural issues and management of HR.Design/methodology/approach– In-depth interviews were conducted with executives working in MNCs and Indian MNCs based in India and abroad. Respondents were senior professionals, working in diverse sectors and had global work experience for about five years. Majority of the interviews were conducted in Delhi and some were conducted in Singapore. Interviews responses were qualitatively analysed.Findings– Findings reveal that MNCs wanting to do business in India need to have a long-term business focus, a well-defined expatriate policy and deep pockets to experience growth and payoffs on investments. In order to be successful, they need to understand India culturally and geographically, build trusting relationships with HCNs, partner with local players who are familiar with domestic challenges and localize the best practices of the west. Attrition and retention being the major challenges in India, compensation alone is not enough to attract and retain talent. Understanding Indian psyche and offering individuals a unique value proposition such as challenging roles and professional growth is imperative for creating an attractive employer brand in order to win the war for talent.Research limitations/implications– Though sample size is small, this research has implications for MNCs operating in India or planning to set up Indian operations.Originality/value– Inferences have been drawn out of primary data collected from senior executives who were handling core MNC operations and sharing their wealth of experience. The findings give fresh insights into the whole issues of MNC management involving cross-cultural and HR issues.

International Environmental Litigation in EU Courts: A Regulatory Perspective: Table 1.

This article argues that the rules of European private international law, which frame international litigation in the courts of the Member States of the EU, fail in their pursuit of the cosmopolitan goals of EU environmental policy. The practical application of these rules is limited to the following two types of case: 1) the case of victims suing an operator whose actions in one country directly cause environmental damage elsewhere, and 2) the case of victims suing a European-based multinational corporation operating in an extraction or chemical industry whose overseas subsidiary, typically in a developing country, causes environmental damage. By arguably not accommodating claims by public authorities against foreign operators, including from other Member States, which are crucial in cases of pure environmental damage, and the cases of the second type in industries other than extraction and chemical, European private international law fails to achieve fully its regulatory potential. Furthermore, the rules of European private international law have the effect of raising the level of environmental protection solely within the EU and at its borders in the first type of case and shielding European multinational corporations from liability for the environmentally detrimental and degrading effects of their overseas operations in the second type of case. These rules are therefore an inadequate tool of global governance. Avenues for improving the law are mentioned.

The Ranking of Cities as Centres of the Hungarian Economy, 1992-2012

This analysis has relied on an empirical method to identify and rank cities as centres of the Hungarian economy from 1992 to 2012. After the change in the political and economic system of Hungary, a new economic climate emerged (e.g. Hungary joined the European Union, foreign direct investments appeared in the economy, special taxation regulations were introduced), which changed the position of cities. During this two-decade-long transformation, the dominance of the capital, Budapest, and its agglomeration considerably increased; the east-west dichotomy became more pronounced, while the economic role of the traditional industrial centres and that of some large cities weakened. Because of these processes, new types of economic centres emerged, which did not have a significant role in the national economy. Cities that became crucial economic actors because of the offshore operation of foreign multinational corporations are exceptional in this. The ultimate goal of this study is to introduce a straightforward urban hierarchy, establish a classification based on the economic profile of cities, and address the typical anomalies after the change in the political system.

Measuring the business value of IT outsourcing: a systems approach

Purpose – The purpose of this study is to examine information technology (IT) outsourcing measurement systems. This paper proposes a systemic framework which can be used to support the evaluation of existing and the development of new measurement systems in the outsourcing context. The framework is built on the multidimensional characteristics of the business value created by IT outsourcing (ITO). Design/methodology/approach – After the conceptual discussion, this paper develops a systemic procedure for evaluating and developing measurement systems. The proposed procedure is applied in a multinational corporation operating in the electronics industry and conducting global business. First, the characteristics of the previous measurement system are evaluated, then the systemic properties of the current system are assessed and, finally, a new measurement system is proposed. Findings – The findings reveal that the measurement systems differ on many levels, namely, input, measurement process and output. The framework provides a structure for proper comparison of alternative measurement systems. When comparing the results to the most commonly used ITO theories, specifically the resource-based view and transaction cost economics, it is somewhat surprising that individual elements such as the cost of outsourcing and focus on core competencies were not weighed any higher in the final results. Practical implications – Organizations have difficulties in measuring actual benefits, opportunities, costs or risks involved in outsourcing transactions. The proposed framework forms a basis to resolve the measurement problems and even support the actual sourcing decisions. The applicability of the proposed approach was verified by evaluating three different types of measurement systems in a multinational corporation conducting global business in the electronics industry. Originality/value – Different kinds of measurement systems can be evaluated by the same systemic framework. The evaluation process is not limited to qualitative or quantitative assessments, but the same framework can be used in both cases.

How to Influence the Job Rotation of the Employee on Intelectual Risk in the Service Industry

Purpose: This study aims to stress on the phenomenon of intellectual capital (IC) risks. More precisely, the perception of such risks in the context of the job rotation process often applied in multinational corporations (MNCs) is to be investigated. Design/methodology: Seven semi-structured interviews are conducted in an exemplary knowledge-intensive MNC operating in the construction industry. Six interviews among top managers and five interviews among participants in the job rotation process are carried out to gain insights from different perspectives. Findings: The study emphasize the influence of time pressure on the perception of the variety of IC-related risks in general and of those related to the job rotation process. As a result, the risks are not tackled even though the managers are aware of some of them. Research limitations/implication: The data were collected in one organization, making inferences about the findings not possible. Future studies should consider multiple organizations. Practical implications: A list of potential IC risks triggered during the job rotation process is presented and suggestions to tackle them are discussed. Furthermore, the findings can contribute to the further development of an overall overview of IC risks. Originality/value: The study condemn fresh insights into the relationship between IC risks and job rotation as perceived by different organization members.

The impact of talent management and employee engagement on organisational performance

The paper studies the impact of talent management on organisational performance in multinational corporations through applying management development and strategic HR inputs, and to evaluate the mediating role of employee engagement in the strategic HR inputs and organisational performance relationship. An online survey was distributed among managers of the first ten global multinational corporations listed by Fortune magazine 2013 and 498 responses were collected. The respondents were selected through LinkedIn using stratified sampling. PLS-SEM was used to test the hypothesised relationships of the model. The result shows a positive relationship between (1) MD Index and organisational performance, (2) strategic HR and organisational performance, and (3) employee engagement and organisational performance. Utilising PLS path modelling to evaluate structural model including higher-order component (MD Index) is highly original. The paper emphasises the importance of engagement as a mediator of the relationship between strategic HR and organisational performance in the talent management context.

Consumer’s Brand Choice Behavior for Luxury Cars in China

This paper introduces the aphorism “think globally, act locally” and examines consumer tendencies in the Chinese automobile marketplace based on the analysis of relevant local brands. Findings demonstrate significant consumer preferences for products related to the luxury category signifying the need for refining local marketing operations where performance of multinational corporations must match global standards as expected by local consumers. Car consumption has grown during the last years in China turning brand marketing into a critical variable that can forge an active place in consumer’s minds, or negative impact if a campaign is not well-implemented. The relevance of this subject result from the realities that brand marketing is one of the most important aspects of determining whether a brand succeeds or fails. Regardless of the benefits of the brand, poorly marketed brand can end in failure. Multinational corporations need to identify several factors to understand the benefits of branding such as the image and characteristics of the firm, the purpose of the brand, the consumers profile, the brand’s position within the marketplace, and the brand’s general impression. Once, multinational corporations entirely assume these aspects they can utilize brand marketing to market the benefits of the brand in any space in the marketplace. The investigation provides several recommendations to multinational corporations intending to enter Chinese market by utilizing brand marketing as a strategic tool to focus on consumer needs and preferences in the Chinese luxury automobile market.

The ranking of cities as centr es of the Hungarian economy, 1992–2012

This analysis has relied on an empirical method to identify and rank cities as centres of the Hungarian economy from 1992 to 2012. After the change in the political and economic system of Hungary, a new economic climate emerged (e.g. Hungary joined the European Union, foreign direct investments appeared in the economy, special taxation regulations were introduced), which changed the position of cities. During this two-decade-long transformation, the dominance of the capital, Budapest, and its agglomeration considerably increased; the east-west dichotomy became more pronounced, while the economic role of the traditional industrial centres and that of some large cities weakened. Because of these processes, new types of economic centres emerged, which did not have a significant role in the national economy. Cities that became crucial economic actors because of the offshore operation of foreign multinational corporations are exceptional in this. The ultimate goal of this study is to introduce a straightforward urban hierarchy, establish a classification based on the economic profile of cities, and address the typical anomalies after the change in the political system.

Corporate Social Responsibility: Its Economic Impact and Link to the Bullwhip Effect

This paper examines the economic impact of implementing Corporate Social Responsibility (CSR) in the supply chain operations of multinational corporations (MNC). Because they have global supply chains in emerging markets, MNCs face certain operational challenges. For example, unethical operations often result in a huge loss to MNCs in the long run, even though their initial cost seems to be low. In this paper, we extend the Bullwhip Effect theory in supply chain management to the ethical operations context, and define and evaluate a special Bullwhip Effect due to Unethical Operations (BEUO). Using economic data from various sources including Ford, Toyota, and GM in the auto industry, we first estimate the indices of BEUO for the three companies and demonstrate the economic necessity for MNCs to incorporate CSR with supply chain operations. We then propose a coherent approach, blending what we term the bottom-up and proactive methods, to achieve such an outcome. The bottom-up approach requires MNCs to switch their focus on stakeholders, shifting from shareholders to consumers and workers, and on decision levels from public relationships to supply chain operations. The proactive approach recommends initializing specific CSR operations to mitigate the negative impact of BEUO. Both theoretical analysis and case studies are conducted to evaluate our developed propositions that MNCs adopting the proposed CSR operations will in the long run achieve better economic performance. Recommended actions for implementation, based on best practices, are also presented.

Organisational Geographies and Corporate Responsibility: A Case Study of Japanese Multinational Corporations Operating in South Africa and Tanzania

Organisational Geographies and Corporate Responsibility: A Case Study of Japanese Multinational Corporations Operating in South Africa and Tanzania

Organisational Justice: A Senian Perspective

In this paper, we draw inferences from the Nobel laureate Amartya Sen’s book, The Idea of Justice to inform the organisational justice literature. The extant societal-level theories of justice tend to emphasise aspects that are analogous to either the procedural or distributive dimensions of organisational justice. The Senian idea of comprehensive justice is different in that it synthesises the procedural- and distributive-related dimensions at the societal-level. We theorise that the Senian notion could be applied at the organisational-level to facilitate outcomes that are actually valued by the workforce. Further, we contend that the emphasis on non-parochialism in the Senian notion of justice makes it particularly relevant to the ethics of multi-national corporations (MNCs) operating in alien cultures. To support our contention, we analyse the lean manufacturing practices of a Japanese MNC operating in India. Our case analysis demonstrates how Senian thinking helps one surface unjust outcomes that would otherwise go unacknowledged. Our analysis also offers tentative support to Senian claims about the capacity of human behaviour to undermine well-designed institutions. Concurring with the Senian view, which favours combating manifest injustice rather than fixating over designing perfectly just institutions, we derive some normative implications to advance the cause of striving for outcomes that are actually valued by the workforce.

Insider vs. Outsider: Choosing Local Market Knowledge Source in the Emerging Market

Since multinational corporations (MNCs) in host countries frequently face location-based disadvantages, local market knowledge acquisition has become an increasingly important topic in the knowledge management literature. Within this research stream, the process of local market knowledge transfer has been widely discussed. However, the issues of the source (especially the internal and external sources) for MNCs to obtain local market knowledge have not been well studied, especially in the emerging market context. Also, the consequence of choosing a local market knowledge source, which interests practitioners more, rarely appears in the literature. This study aims to be the first conceptual paper discussing both antecedents and outcomes of choosing either inside or outside local market knowledge source in the emerging market context. The framework we propose, using MNCs as the unit of analysis, includes both micro-environmental factors (organizational culture and the home market performance of MNCs) and macro-environmental factor (the openness of the economic system in the emerging market) that impact the local market knowledge source choice (insider or outsider) of MNCs. In addition, we discuss how the extent of the environmental turbulence (especially market turbulence) in the emerging market moderates the relationship between either inside or outside local market knowledge source and the performance of MNCs in the emerging market. We believe our framework is a parsimonious and systematically clear way of explaining what is actually a complicated phenomenon and we hope that this paper provides a conceptual framework, which stimulates subsequent empirical studies.