Role Of Multinational Companies Research Articles

DYNAMICS AND MODERN TRANSFORMATIONAL TRENDS IN BUSINESS PROCESSES OF MULTINATIONAL COMPANIES

Modern globalization processes and the formation of the world economic space have led to the integration of large companies and the emergence of new multinational companies (MNCs), which are the flagships of modern economic development, determine the driving force of the world economy and the level of competitiveness at the international level. In order to remain financially and economically powerful leaders in the international arena, business processes in multinational companies must be regularly updated and transformed in accordance with modern development trends. The purpose of the study is to study and analyze the dynamics and modern transformational trends of business processes of multinational companies in the global business environment. To achieve the goal, the research determined the essence and role of multinational companies, analyzed the main modern trends in the development of MNCs, researched current trends in business processes that are carried out in the activities of multinational companies, substantiated promising directions for improving the business processes of multinational companies. The author assessed the current state of operation of multinational companies for greater thoroughness of the research. The dynamics of the number of MNCs in the global dimension are analyzed. The world's largest multinational companies by region of the world as of 2022 have been determined. The Top-10 largest global multinational companies by the level of turnover of financial resources were analyzed. In the course of the study, modern transformational trends introduced by multinational companies for greater effectiveness of their activities were identified. Attention is focused on the fact that modern transformations of business processes of multinational companies are mostly aimed at digital transformation and global standardization. The authors also substantiated directions for further improvement and renewal of business processes of multinational companies, which are promising for implementation and will allow MNCs to function more effectively and efficiently (use of complex IT solutions; improvement of MNCs business processes; emphasis on regional affiliation; environmental sustainability and corporate responsibility).

Technology Transfer Agreement of Multinational Companies in The Framework of Investment Development

The regulation of technology transfer to Multinational Companies (PMN) to date still pays attention to the provisions of the Law of the Republic of Indonesia No. 25 of 2007 on Investment, especially Article 2 paragraph 1, in addition to Indonesia has also adjusted the provisions of national laws in the field of economy/trade with the provisions of GATT and WTO that hav been ratified through the Law of the Republic of Indonesia Number 7 of 1994, including adjustments to the provisions of the field of intellectual property rights (IPR) contained in the TRIPs, such as the Law of the Republic of Indonesia No. 14 of 2001 on Patents, The Law of the Republic of Indonesia No. 15 of 2001 on Brands, and the Law of the Republic of Indonesia No. 19 of 2002 on Copyright, and others covered as objects of intellectual property rights (IPR). The role of multinational companies (PMN) in the transfer of technology can be mentioned, among others: As a holding company that can be used for media, containers, information exchange, technology between countries in the international community which is further used, and useful for Indonesia; As a place for investment in order to obtain benefits for Indonesia; and As a place for the application of new technologies to be useful more efficiently and effectively benefit Indonesia, in addition to improving international economic trade.

Globalisation, World Trade Organisation and Indian Agriculture-a technical over view

The impact of globalization following agreement with world trade organization on Indian agricultural areas, role of multinational companies and their effect have been undertaken through technical observations. Effects are clearly visible between farming undertaken by rich farmers sponsored by multinational companies and traditional mechanical farming by local poor farmers, resulting in social gap between them. Moreover, decline availability of native seeds, loss of natural fertility of land due to its excessive use, besides adverse impact on environment and biodiversity have been observed. Some effective suggestions have also been enumerated for the purpose.

Role of Multinational Companies (MNE) in the Transfer of Human Resource Management (HRM) Practices in Albania

Globalization is part of everyday life for everybody and for companies, too. In this globalization era, multinational companies (MNE) are gaining new experiences in diverse environments, diverse nations and diverse cultures. So, a big concern for MNEs, nowadays, is the issue of convergence versus divergence. In the focus of this issue is the transfer of Human Resource Management (HRM) practices across countries. The effectiveness of this transfer is the key of success of MNEs and it depends on different factors, such as: the cultural distance between MNEs home country and host country; new institutional environments; presence of expatriates in their subsidiaries etc. This paper is a literature review one and has in focus the identification of factors affecting the transfer of HRM practices from MNEs in their subsidiaries in Albania. In the Albanian reality there is a lack of studies in this aspect, which serves as the contribution of this topic, same as for academics, as well as for MNEs that have subsidiaries in our country. The future research will continue with survey method which tends to collect data from the top managers of subsidiaries of MNEs operating in Albania. DOI: 10.5901/ajis.2015.v4n3s1p445

Issues of modern macroeconomics: new post-crisis perspectives on the world economy

Modern macroeconomics has failed in the analysis of both the US banking and the euro crises, respectively, and there is also a rather inadequate view on a range of relevant policy issues. The approach presented herein looks at the reasons for analytical failure and suggests means of improvement – picking up proposals from the literature as well as contributing new ones. The economics profession did not anticipate the banking crisis and there is reluctance to switch to a new paradigm for stabilization policy analysis. Beyond this, there are several analytical challenges which should be integrated into a post-crisis approach: for example, the question of the true degree of economic openness and the role of multinational companies. Moreover, the macroeconomic impact of the digital economic expansion is largely underestimated. The traditional view on asset bubbles has become doubtful. A new paradigm should emphasize the triple analytical challenge of short-term financial market analysis, the routine new questioning of the systemic stability of economic systems and standard macroeconomic modeling – with some refinements; a “Schumpeterian Mundell-Fleming-Solow-Akerlof-model” and sustainability aspects are important on the one hand, on the other hand NKM models have to integrate a broader array of market imperfections. The perspectives presented could jump-start a new paradigm that combines a more realistic macro perspective with a complementary critical institutional analysis.

The Influence of Entrepreneurial Learning in New Firms' Performance: A Study in Costa Rica

The creation of new firms is important for the economy, and entrepreneurial learning is essential for the performance of new firms. We contribute to existing knowledge by combining these two topics and considering a third one: The role of multinational companies (MNCs) as a source of learning for the entrepreneur. This approach has rarely been taken in the literature. We investigated the performance of a group of young companies created by former employees of MNCs and their relationship with entrepreneurial learning in such companies. The study was based on a sample of 175 former employees of MNCs in Costa Rica, who founded their own firm between 2001 and 2007. The control group was formed in the same sectors and over the same time period, but contained people who were not former employees of MNCs. We found a positive linear relationship between post-start-up entrepreneurial learning and performance. No relationship was found between pre-start-up entrepreneurial learning and performance. We did not find significant differences in entrepreneurs with work experience in MNCs. This poses interesting questions for future work.

The Role of Multinational Companies in Sustainable Socioeconomic Development: The Case of Palestine

The Role of Multinational Companies in Sustainable Socioeconomic Development: The Case of Palestine

New Europe's Promise for Life Sciences

The life sciences sector (and biotechnology in particular) has emerged as a prospective area, and attracted a lot of attention recently. Multinational companies in the life sciences seek to explore new markets, and, on the other side, governments strive to develop the life sciences sector perceiving it as a basis for long-term development. Whilst the R&D activities of global multinationals in life sciences still remain concentrated in the Triadic economies, these companies increasingly seek for new location to tap the knowledge. New EU member states emerge as such prospective locations. Notwithstanding the interest towards this sector, the body of literature on the development of life sciences in new EU member states, and particularly, the role of multinational companies, remains scant. In this explorative study we attempt to fill this gap and focus on the role of multinational companies in the Czech life sciences sector.

The Role of Multinational Companies Investing in Oil Exploration and Extraction in Sudan

The purpose of this paper is to present the role of multinational companies in general then its role in Sudan with particular emphasis on oil exploration and extraction. Chinese companies of multi-nationalities currently control the newly born oil industry in the country. Needless to say that the dire needs of the government because of its international isolation and sanctions compelled it to be subjected to bellow standards conditions in all economic and environmental aspects. The government accepted the conditions for the past twelve years. However, the secession of Southern Sudan into new country gives better re-negotiations opportunity to the newly born country. Meanwhile, the North is compelled to accept whatever conditions imposed on it for those Multinational companies, as referred before as controlled by Chinese capital and administrations. It is suggested here that the improvements that occur to the Northern Sudan's oil industry shall be carried out in new concessions provided by Western companies. However, the political sanctions still lie as barriers for such logical solution.

The role of multinational companies in corrupt practices: the case of Nigeria

A number of studies and reports have associated corruption with the misuse of public office for private financial gain, but these studies have rarely examined in detail a major vehicle for bribery and corruption. This paper argues that some corporations are willing to increase their profits through indulging in bribery, corruption and money-laundering, which has a tendency to degrade the governing system in the developing country. The paper locates the role of MNCs within the broader dynamics of global capitalism to argue that the continued drive for higher profits and competitive advantages at almost any cost is not constrained by rules, laws and even regulatory action. The paper uses publicly available data to show that MNCs are the engines of corrupt practices in Nigeria. Evidence is provided to show that in pursuit of higher profits, MNCs have designed novel schemes to circumvent laws and regulations. The paper seeks to explore and demonstrate the intensification of the role of MNCs in anti-social practices in a developing country, even though this role is in contradiction of the claims of MNCs to be socially responsible and accountable.

The role of multinational companies in tax evasion and tax avoidance: The case of Nigeria

Tax evasion and tax avoidance reduce government revenues. This has a significant detrimental effect on the provision of infrastructures, public services and public utilities. Multinational companies (MNCs) in the oil, gas, and manufacturing sectors have used various tax schemes, ranging from off-shore intermediary companies to claiming recharges, royalties or technical fees and under-reporting of profit, to avoid paying tax in Nigeria. This paper locates the role of MNC tax practice within the broader dynamics of globalisation and the pursuit of profits, to argue that the drive of MNCs for higher profits can enrich our understanding of why some MNCs engage in tax evasion and avoidance at almost any cost. Stimulated by profitability, and intense competition and pressure to increase earnings, capitalist enterprises constantly seek new ways of boosting their earnings by developing complex structures and novel ways of increasing their profits by exploiting ambiguities in the law. The evidence shows that tax havens and offshore financial centres, shaped by globalisation, are major structures facilitating the anti-social tax practices of MNCs. The findings also suggest that the local business elite and local professionals are key actors in facilitating these anti-social tax practices in Nigeria for their own financial gain. These MNC practices also shift the tax burden to less mobile capital and less well-off citizens, and thereby undermine the Nigerian social fabric. This paper therefore argues that tax reforms are needed to reduce the problems created by MNCs and their affiliates operating in Nigeria.

Hungary in transforming Central and Eastern Europe, 1989–2008: A few debated questions

The paper addresses some debated questions and popular misconceptions concerning Hungary’s transformation process. These debated questions include the historical role of the Hungarian market reforms and how they helped the country in rapid transition later on; the first years of transition and the dilemma of gradual vs. shock therapy type reforms; the role of multinational companies in the Hungarian economy; the economic crisis in Hungary of the past years (2006–2008); and finally, how Hungary should proceed with reforms in the future.

The Biggest Polish and Ukrainian Enterprises - Globalization or Market Concentration? Comparasion to the Biggest World and European Multinational Companies

The paper objective is to compare the biggest Polish and Ukrainian companies on the light of globalization and concentration. The questions which will be answered on the research is what are the biggest enterprises of both countries, what sector of the economy they are represent and finally what is the main reason of the size of the enterprises. The result will be compared to the biggest companies in the world and Europe. The methodology which will be used in the research is based on revenues as a classical indicator of the company size and type of production/service the company is working in. The results could help answer if the Polish and Ukrainian companies are similar to world and European’s one. In the first part of paper the basic theory of globalization and role of multinational companies will be presented. The second part shows data becomes form companies and comparisons. The last chapter is a summary which describes basic conclusions.

Revealed Specialization: Evidence on U.S. International Services

This article is an investigation of the comparative advantage structure of United States international trade in services. It appears that the United States has a strong comparative advantage in knowledge-based services. For this study, the author adopts the Revealed Comparative Advantage (RCA) index to analyze the comparative advantage structure, and demonstrates that variance in the RCA deviations indicates a similarity in the export structure between the United States and the world. This study also focuses on the role of multinational companies, linking microeconomic entities and the macroeconomic surroundings.

Young consumers' perceptions of multinational firms and their acculturation channels towards western products in transition economies

PurposeThis research aims to focus on the understanding of how young consumers (generation Y) in transition economies perceive western multinational firms, what factors influence their consumption preferences of western products, and what are communication channels that affect their purchasing intensions of western products and brands.Design/methodology/approachData were collected by interviews of consumer focus groups for qualitative implications, and survey questionnaires were developed to obtain quantitative data for statistical analyses to provide additional insights during the period from September to November 2004 in Almaty, Kazakhstan.FindingsThe findings suggest that due to the influence of increased contacts with western cultures, people, and products through mass media (mainly TV) and marketing campaigns by multinational companies, most of the young consumers in transition economies have favorable attitudes towards western products and things, and they have high appreciation especially for global brands. However, product attributes could mean different things in different cultures.Research limitations/implicationsThe results of this study are exploratory in nature and should be tested and reviewed with further studies. Because this study was conducted within a single segment, validation of these findings in other segments will require additional research. Different sample groups can be tested for validation purposes. Finally, this study was limited to the cogitative responses of consumers with limited investigation of actual consumer purchasing behavior.Practical implicationsThe researchers suggest that marketing managers should seek to communicate and promote their brands and products as symbols of global consumer culture, and if possible, utilizing celebrity advertisements as marketing communication tools, especially to young consumers in transition economies. The objective would be to have consumers identify their brand and product as a sign of membership in the status‐seeking, achievement‐oriented and hedonic segment markets.Originality/valueFew studies of generation Y consumers in transition economies have been carried out. In particular, the choice of Central Asia and the role of multinational companies are especially important.

3M: Role model for emerging markets

This article focuses on the role of multinational companies in transferring advanced human resource management practices to post-Communist countries. It reviews the lessons learned from the complex cultural and historical configuration of a transitional economy. The authors analyze 3M's experience in Russia and the results of interviews with the company managers. They summarize innovative solutions in hiring, training, motivating employees, and creating organizational culture, and discuss the company's position as a role model for emerging markets. © 2006 Wiley Periodicals, Inc.

International Regulation of Multinational Corporations*

The purpose of this paper is to explore the role of multinational companies in zones of conflict. This issue has become increasingly sensitive over the last several years, particularly due to the issue of “conflict diamonds” coming from Angola and Sierra Leone, the proceeds from whose sales served to fund insurgency in these countries. The role and responsibilities of international corporations in this area have been studied. Do they initiate conflict? Do they prolong conflict? Can they play a role in mitigating or ending conflict? Where do gaps exist in the current international regulatory and policy framework? Are the tools that companies currently deploy sufficient? Are they necessary? How can we find ways forward to fill these crucial gaps? This paper seeks to provide a blueprint for tackling such questions.

Diffusion of HRM to Europe and the Role of US MNCs: Introduction to the Special Issue

There has been considerable debate both among scholars and policy makers concerning the extent to which national systems of industrial relations (IR) and human resource management (HRM) systems are converging. In Europe this debate has concerned both convergence within Europe and convergence between European systems and those of non-European states, most notably the USA. The convergence thesis rests essentially on the notion of competitive isomorphism: that is as firms are increasingly faced with similar competitive environments globally, they will adopt similar (optimally efficient) management practices. For example, a significant part of the European convergence debate concerns whether, in Europe, collective employee relations, mediated by representative institutions are being replaced by HRM management systems designed to establish a direct and individualised relationship between organization and employee. Some commentators have attributed this trend to the influence of a model of HRM derived from practices in the USA and increasingly adopted in Europe. Multinational companies (MNCs) have become of particular importance to this thesis. First, they are often seen as an important channel for the transmission of management practices from one country to another, in particular from the USA to Europe. Second, the transferability of management practices from one national context to another is a matter of considerable practical importance for managers in MNCs. Third, the economic importance of large MNCs and their border spanning nature means that their activities have particular salience to legislators and regulators. This special issue addresses these concerns in three ways. First reviews of the development of HRM in the USA and in Germany and evidence on convergence of HRM practices in Europe help us consider both what may be being transmitted from the USA and the evidence for its transmission. Second three papers, provide different kinds of evidence on the convergence or barriers to convergence of HRM practices between Europe and the USA and the role of MNCs in that transmission. Finally, the special issue concludes with three reviews of in all six books each of which are relevant to the concerns of this special issue.

Quasi‐legal commerce in southeast asia: Evidence from myanmar

AbstractThe historical absence of formal political borders in the mainland Southeast Asian region, combined with the nature of the geography, mean that unofficial and illegal forms of crossborder movement and economic activities are pervasive and significant throughout the region. This is particularly true in Myanmar (formerly Burma), where pressure on international firms to comply with a boycott of the country, togeth‐er with the covert activities of the government conspire to make border trade a viable form of international business. Although illegal trade such as smuggling is perhaps a universal feature of international economic activities, what is more interesting is the phenomenon of quasi‐legal trade, which includes such activities as parallel importing and reimporting, and advertising by proxy. In many cases, there is evidence that multinational firms collude with distributors, quasi‐legal importers, and government officials to enable the continuation of the marketing of their brands within a country in which this would otherwise be prohibited. This article reports on research conduct‐ed in Myanmar during 1997 and 1998 concerning this issue. The study included a wide‐ranging program of qualitative research with in‐depth interviews of leading overseas executives, intermediaries, and government officials. This research in Myanmar is unique, and it was conducted under considerable difficulties and extreme need for security and provision of confidentiality. In describing the role of multinational companies and others in pursuing quasi‐legal border trade, the article makes a significant contribution to the understanding of the business environment in Myanmar and, more generally, in Southeast Asia. The wider implications of this for international marketing are also described. � 2001 John Wiley & Sons, Inc.

What Role for Multinationals in the New Theories of International Trade and Location?

The paper starts with a summary of the way the new theories of international trade have incorporated the role of multinational companies (MNCs) in the location of production. The main, specific assumptions used to incorporate MNCs' activities relate to joint inputs at the company's level combined with assumptions regarding costs at the plant level and spatial transaction costs. It is claimed that this approach explains multi-plant location, although it cannot discriminate between inter-regional and the inter-national multi-plant location. It is argued that nation-states should be distinguished by their regulatory regimes. The MNCs' ability to plan and organize across different regulatory regimes may give them special advantages linked to distributional issues and spread-ofactivities strategies. These strategies may lead to a pattern of industrial location not fully congruent with the one emerging from the new trade and location theories.