Western Companies Research Articles

China's Entry into Construction Industries in Africa

Construction companies have played a key role as vanguards of China's engagement with Africa. China has a long history of relations with both Tanzania and Zambia, and the privatisation and deregulation of China's construction industry has been accompanied by a steady increase in the number of Chinese companies entering these two African countries. Differences in the construction industries of Tanzania and Zambia reveal interesting patterns in the participation of Chinese firms in these countries’ economies. In Tanzania, the Chinese are not yet in competition with indigenous companies which lack capacity for large-scale projects. The standards of work completed by Chinese companies are considerably higher in Zambia where regulations and building codes are more strictly enforced. The Chinese have little interest in joint ventures, although they regularly subcontract local companies and procure considerable quantities of local materials and labour. Western companies maintain a decreasing advantage in specialised or technical areas of construction; however, the Chinese adapt more readily to the African environment and quickly find their feet. Once established, the only serious competition Chinese companies appear to face is from one another.

Strategic Thinking And Contemporary Business - Thoughts From An Ancient Indian Thinker

Business strategists are well aware of the work of Italian statesman Machiavelli and Chinese scholar Sun Tzu. Their books are increasingly read and appreciated by researchers and managers around the world. Unfortunately, most academics and practitioners appear to have overlooked another eastern scholar of similar value who was writing in ancient India around the same time that Sun Tzu was writing in China. This article presents the wisdom of Chanakya, an ancient Indian statesman and scholar, to business executives and scholars. His book Arthashastra (The Science of Wealth) written about 2500 years ago as a treatise on political governance can contribute immensely to business competitiveness in today's world, both domestically and internationally. Understanding Chanakya's work can help Indian companies grow and succeed vis-à-vis their competitors domestically and internationally as well as Western companies interested in doing business in India.

Huawei at the crossroads

PurposeReviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.Design/methodology/approachThis briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.FindingsWhen Napoleon ruminated on China's potential to shake up the Western world two centuries ago, he could hardly have imagined that the sleeping giant would wait so long to awaken. However now the world is firmly in the post‐Chinese slumber era, it would have also surprised Monsieur Bonaparte that while every exporting Western company of a certain size has its own China strategy firmly in place, very few Chinese companies have taken the world by storm so far. What has, if anything, hindered the chances of a really big global player taking on the West?Practical implicationsProvides strategic insights and practical thinking that have influenced some of the world's leading organizations.Originality/ valueThe briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Secondary Privatization in Transition Economies: The Evolution of Enterprise Ownership in the Czech Republic, Poland and Slovenia by Barbara Blaszczyk Iraj Hoshi Richard Woodward (review)

REVIEWS 379 tryingto conceptualizethis along a two-dimensionalspectrum.Thus the book could have benefited from a final chapter offering critical perspective on the idea of 'soft' and 'hard' borders, seeking to reach some conceptual and theoreticalconclusions in the light of the wealth of empirical and case-based data and analysispresented here. Nevertheless, this is a welcome addition to the literature,notable for the consistentqualityof the chaptersand, often a problem with edited collections, the clarityof the organizationalstructureof the book as a whole. School of Government andInternational Affairs JOHN WILLIAMS DurhamUniversity Blaszczyk, Barbara; Hoshi, Iraj and Woodward, Richard (eds). Secondagy Privatization in Transition Economies: TheEvolution ofEnterprise Ownership in the CzechRepublic, PolandandSlovenia. Palgrave Macmillan, Basingstokeand New York, 2003. xvi + 268 pp. Figures. Tables. Notes. Bibliographies. Index. ?55 ??o THE sixteen economists contributingto this study of the early phases of the privatizationof the economies of the three countries covered in this volume provide some interestinginsightsinto the differentapproachesto the transformation process adopted in each of these erstwhile Communist economies. What they don't do is address in any depth the political constraints that informed the choice of transformationmodel in the three countries.For, parallel to the marketizationof their economies was the democratizationof their political systems,which imposed certain limits on the speed and characterof the privatizationprocess, particularlyin Slovenia and Poland. Thus, the fear of 'un-election'and of blatant 'nomenklatura-capitalism' (whereformerCommunist officialsused theirposition to acquireand/or asset-stripthe enterprises being privatized)caused the new political leaders to delay and institutionally constrainthe privatizationprocess. Interviewsof individualsinvolved in this processin Slovenia and Poland by this reviewerin the early I990S indicated the extent of the fear of such distortions of the market and the political sensitivityof the issues. In the Czech Republic, which was led by more ideologically committed economic purists, such considerationswere less in evidence, and the privatizationprocess was much less carefullyregulated.In all three cases, however, the expectationwas that the ownershipchanges thatwould occur subsequentto the initialdistribution of assets to the population (via vouchers or certificatesof share entitlement ) would rationalize the fragmentationof ownership and lead to a more efficientconcentrationof ownershipand, hence, better corporategovernance. To some extent this has happened and, as the authors show, the residual influence of the state on economic processeshas steadilydeclined. Moreover, they show, through economic and econometric analysis,that the modes and effects of secondary privatization were ultimately quite similar, despite the differencesin the models of privatizationinitially adopted. One of the most significantdevelopmentsin the laterprogressof the three economies has been 380 SEER, 85, 2, 2007 the opening up of the respective economies to foreign direct and portfolio investments, which have entailed the introduction of international product and quality standards. On the other hand, the authors occasionally point out that the effect of multinationalpenetration has sometimes run counter to the fiscal needs of the individual countries because of the common resort to transferpricing and other methods of concealing the true profitabilityof the in-country enterpriseand, thus, its taxability. Among the more interesting aspects of the primary and secondary privatization processes were the various state-sponsored investment funds. These were set up in all three countriesto restructureindividualstate-owned enterpriseswhich were not immediately saleable and prepare them for eventual sale to private individualor corporateowners. The institutionsproved to be very inefficientand unprofitablein all cases. They did not have the capital to make significant improvement in the viability or performance of the enterprisesassigned to them, and they operated under strong pressuresfrom the state and tradeunions, which were unwillingto accept the drasticrestructuring and labour-forcecuts, let alone liquidation, that were often requirecl. In most cases they continued to operate long aftertheir expected use-by date. In Poland these so-called National Investment Funds were kept alive by the very high management fees they contracted to pay to domestic and Western management companies, for whom they representedan importantcash cow. Moreover, the fee structurethat was mandated involved a surprisinglysmall performancebonus component. It was littlewonder that the NIFs themselves became the object of competition for both domestic and foreignstrategicand portfolio investments. While the book offers many interesting and detailed perspectives on the transformationprocess,a few mildlycriticalobservationsare in order.For one thing, although econometric analysesare often helpful in indicating causality or the lack thereof in statisticalterms, they rely on data sets which are...

Cultural competence and instructional design: Exploration research into the delivery of online instruction cross-culturally

The amount of resources being poured by Western universities, companies, and governments into creating educational content to be exported (via the Internet) to other cultures is astounding. Those assigned to accomplish this task are left with the great challenge of meeting the needs of learners who come from cultures that are foreign to them, and who often have very different abilities and expectations than originally assumed. This study explores the cultural competence in the lived experience of 12 professionals who have been involved with such efforts. Often they have had to question their assumptions, recognizing flaws in their own thinking and in the organizations that support them, and tried to alter their practice accordingly. Their awareness of cultural differences and the importance and impact of these differences in their practice will be discussed.

Is more IT offshoring better?: An exploratory study of western companies offshoring to South East Asia

We explore the link between a company's performance and the extent of its offshoring of IT-enabled services, focusing on large western companies. Our performance measures comprise sales, profit as percentage of sales, profit/employee and sales/employee over 1999–2004. To measure offshoring, we consider the extent to which these companies have offshored: (1) software development and other IT-related development and maintenance, (2) business processes such as payroll or claims processing, and (3) call centers. We performed cluster analysis using the three corresponding offshoring variables to obtain broad patterns of offshoring. Then we compared the average performance of the companies in different clusters using ANOVA; did a regression analysis of the performance measures against the three offshoring variables; and performed non-parametric correlations within industry sectors. None of these tests indicated any clear link between company performance and the extent of offshoring thus suggesting that further study is needed to understand when to offshore and how best to do it.

A study of outsourcing relationship in strategic partnership for production in China

When Western companies move their manufacturing base to China, they become new entrants to the world factory. To be successful in managing the production network operation in China, one should understand that companies in China view 'Guanxi' relationships as the solution to almost all problems. The companies of the West, on the other hand, consider systems-related changes as the key to all the problems. These two approaches should be embraced in dealing with conflicts to achieve synergy and bring out the competitive edge needed to support manufacturing in China. The Western companies need a roadmap to guide what they should or should not be doing in China. The authors have consolidated their experiences into a framework for managing business process outsourcing in China. The companies of the West should find the proposed approach useful in establishing a competitive edge for manufacturing in China.

Showdown On The Energy Frontier

Recent moves by the Moscow-based OAO Gazprom, the world's largest oil and gas company, have riled Western energy companies already working in Russia. Two situations in particular have brought issues to a head: one involves development of gas reserves around Sakhalin Island, just north of Japan, the other in an area in the Barents Sea near Murmansk known as Shtokman. Because of these fields' remote and hostile environments, Russia will need some of the most advanced technology in the world to exploit them. Major Western companies have shown interest but Russia is considering buying these technologies from other sources. Gazprom has already scrapped a bidding process that involved four prospective foreign partners, whose offers of stakes in other oil and gas projects had been deemed insufficient

O controle dos processos logísticos, uma condição prévia para uma política do global sourcing: o caso da indústria automobilística e do varejista mundial

As empresas estão, atualmente, expostas a uma competição mundial que se intensifica pelos gigantescos movimentos de concentração realizados nos últimos quinze anos em todos os setores de atividade e pelo aparecimento de concorrentes oriundos dos novos países industrializados (China, Índia, Brasil, Europa Oriental, etc.). Grandes empresas ocidentais têm identificado rapidamente a oportunidade que representa o recurso a fornecedores oriundos destes novos países (o global sourcing). Nesta comunicação, analisamos as exigências e os desempenhos em termos de custo, de qualidade, de estabilidade, de reatividade e de flexibilidade dos processos logísticos ligados às compras mundiais em setores particularmente engajados na globalização: a indústria automobilística e o varejista mundial. Em seguida, nós proporemos uma generalização.

Indonesian Corporations, Cronyism, and Corruption

This paper is concerned with cronyism and corruption in the Indonesian corporate economy. It employs detailed corporate evidence, verifying the inter-penetration of diverse political, bureaucratic and economic institutions. Although the emphasis is on the 1990s, the historical developments since 1950 within the institutions of the presidency, the military, private Chinese and pribumi corporations, as well as state-owned enterprises, are analysed in detail to identify the sources of this corruption. Equally important are the failures of the bureaucracy, the legal infrastructure, in curtailing corruption and introducing effective corporate governance. The relationship of this spiralling corruption to the 1997 financial crisis is clear. The final section is concerned with the reforms introduced after the crisis. This section also appraises the differences in corporate structures and networks between Western companies and the Indonesian conglomerates, identifying the need for institutional change.

The emerging threat of Asia's corporate tigers

PurposeEvery businessperson has repeatedly heard myriad reports and newscasts about the huge market opportunity in Asia. But western business managers will be caught flat‐footed if they do not update their notions of the new competitive capabilities of Asian companies and the rate at which they are evolving.Design/methodology/approachNine conventional notions are presented in this article that are critical for business leaders to change.FindingsWestern businesses must reassess the strengths and weaknesses and update their competitive posture. First they need to jettison outdated conventional wisdom.Practical implicationsWestern companies need to start including Asian players and industry clusters in their competitor screening process, if they have not already. They must evaluate how these rivals could encroach on their businesses and develop strategies now to preempt them.Originality/valueTo compete, western companies are learning new capabilities to develop products around consumer preferences and to engineer a cost structure to deliver them profitably at local price points.

Ticking time bomb: Poorly managed product safety

A key paradigm of the pharmaceutical industry has changed. With increased attention towards ensuring the safety of drugs and medical devices, the ability of firms to conduct risk management based on high-quality pharmacovigilance (PV) – starting early on in clinical development – is becoming increasingly important to the successful marketing of pharmaceutical products. Indeed, the repercussions of recent litigation regarding the Cox-II class of compounds are just an example of how safety management will continue to impact the marketability of both existing and future drugs and medical devices. Firms without satisfactory safety data handling and reporting operations in place are now vulnerable to significant business risks with potential long-term drug safety issues. While this has often been considered a necessity, a small proportion of companies have actively pursued excellence in this area. Companies are taking different approaches to address the increasing demands in this area – from focusing on efficiency to driving higher levels of rigorousness in their PV practices. PRTM various has identified a number of key practices common among firms demonstrating excellence within PV. Results of a pioneering study of 23 top Western and Japanese pharmaceutical companies confirm that, overall, the industry has yet to achieve both a high-level of quality and productivity in firms' PV operations. As the burden for conducting efficient, effective PV becomes increasingly difficult, senior management will seek targeted improvement strategies in order to balance a high level of efficiency with a high level of rigorousness among their safety data handling practices. With this in mind, this article seeks to demonstrate how a company can most effectively comply with ever-changing requirements, strategically improve the thoroughness of the practices within their PV operations and achieve greater efficiency. In addressing these challenges, top management will be focusing a greater amount of attention on one more thing – pharmacovigilance.

International Real Estate Review

Business process outsourcing (BPO) is transforming Western companies’ corporate real estate (CRE) requirements. When business processes move to a developing country there are consequences for that country’s CRE practice. This paper considers the effects of western BPO on Indian CRE. Qualitative and quantitative analysis was used to analyze data from a survey of professionals operating in Indian CRE. Location issues, quality of workspace, and the availability of human resources were identified as important in establishing BPO activities in India. Suburban, and campus or built-to-suit facilities, were increasingly preferred locations and styles of workplace that were transforming Indian CRE practice. Also, the effect of western BPO was impacting on the types of CRE services being offered. With the continuing growth in BPO to ‘secondary cities’ the transformational effects on local CRE practice are likely to spread and further transform CRE practice in India.

By any other name

The brand name is one of the most important devices for marketing a product. Western companies spend vast sums of money devising brand names that convey the positive characteristics of products marketed on the strength of their image. Many of the brand names patented are complex linguistic units, using aspects of phonology, orthography, morphology, syntax and semantics to make names memorable. These names use language to impact on readers and therefore have transferable meanings. This article analyses the linguistic devices in a corpus of English language adverts and investigates which translation strategies are employed when the adverts are transferred into Russian. It argues that the transfer process is more complex than previous literature has suggested and that although the original meaning is often not maintained after transfer, brand names in the target adverts carry new connotations which are appealing due to the target audience’s expectations.

Japanese production management: An evolution—With mixed success

Japanese production management (JPM) became a dominant influence in the field of operations management when, in the early 1980s, knowledge of its main elements became known beyond Japan. Those elements – quick set-up, small lots, cells, kanban, and so on – are well known. Rather than explaining them again, this paper's objective is to explore the sequence of events leading to JPM as a competitive force globally, as well as its impact on theory and practices in operations management. JPM's evolution includes shifting terminologies, fusions and adulterations; limited extensions from manufacturing into services and innovative enhancements, largely of Western origin. Longitudinal research data, based on inventory trends, provide insights on JPM's diffusions and its uneven results. Latter-day puzzling lapses and disappointments, among Japanese as well as Western companies, raise questions about JPM's sustainability, as well as some of its changing manifestations. While the core of Japanese production management, now over three decades old, appears to have become solidly mainstream, its current and future states are problematic.

Constraints facing small western firms in transitional markets

PurposeTo provide an Asia‐Pacific viewpoint of the key constraints associated with large geographic distances for smaller westerns firms entering central and eastern Europe (CEE), described as a turbulent transitional environment.Design/methodology/approachAn exploratory study was used within a qualitative methodology, using eight case studies across multiple industries. Semi‐structured interviews were the main method of data collection conducted in 2003/2004. Open, axial and selective coding was used for the analysis to identifying issues.FindingsKey internal constraints for smaller western firms (mindset of western management and middle management in CEE; and lack of management in CEE with decision‐making authority) related to managements' inability to recognize geographic and psychic distance as major external constraints. Largely overcome by enhancing communication between various functional groups; adapting organizational structure; maintaining frequent communicational; developing partnerships in international joint ventures; finding reliable distributors and commitment from re‐sellers and working with government. While no single international business theory adequately explains this process, there is overwhelming support for the network perspective and international entrepreneurship.Research limitations/implicationsThe study is limited by small sample size. The explanatory phase is proposed with further western companies, such as the UK, operating in CEE to identify geographic distance, and additional CEE markets to verify dimensions in this environment.Practical implicationsThe paper provides a checklist of strategies for overcoming constraints facing managers of smaller firms, entering emerging markets with geographic distance.Originality/valuePrevious studies, using a European or Nordic viewpoint, fail to identify the constraints associated with large geographic distances. This paper provides practical assistance to managers starting out in CEE from the Asia‐Pacific.

Management discourse in the transition from communism to market economy – the case of Ukraine

PurposeThis paper seeks to analyse the ideological assumptions embedded in Ukrainian management thoughts in order to examine whether it matches the transformation from a communist society towards a more liberal society.Design/methodology/approachMethodologically, the paper is based on Fairclough's model of critical discourse analysis.FindingsThe results suggest that there is a move away from Soviet and orthodox ideology towards liberalism. However, the discourse analysis also suggests that the manager controls are based on pre‐modern features embedded in orthodox ideology and to a certain extent in the shadow ideology of the Soviet system.Research limitations/implicationsThe results have practical implications for the construction and implementation of management control systems in Ukraine. The features of the local Ukrainian ideology should be recognised, especially in the case of Western companies managing their subsidiaries in Ukraine. Thus, the results indicate to that, when western management approaches such as decentralised performance measurements models are implemented and insufficient consideration is given to the local Ukrainian ideology, they are likely to miss their objectives and to prove very disappointing. It is suggested that understanding the specific Ukrainian ideology of pastoral authority and personal relations may be crucial for the effective management of a business in Ukraine.Originality/valueThe investigation is relevant because an analysis of the ideological assumptions underlying the communication process provides insight into how Ukrainian management practice contributes to changing social structures and power relationships in the Ukrainian society.

The Shari'a Law Factor in International Commercial Arbitration

The world has witnessed a phenomenal growth in commercial disputes transcending national borders due to our increasingly interrelated and globalized world economy. In addition to issues in interpretation of commercial agreements and practices, differences in custom, language, culture and religion continue to fuel conflicts and disagreements between commercial players. Over the last few decades there have been growing commercial interaction between Western companies and their Middle Eastern counterparts. Given this interaction and the great geo-political and economic importance of this region, it is imperative that Western lawyers and dispute resolution professionals have a reasonable grasp of the general principles of Shari'a or Islamic law, a source (to varying degrees) of law in most nations in the Middle East. It is clear that the increase in international commercial transactions has contributed to the globalization of the legal community, but it is disturbing that there has been very little examination of the influence and impact on the Middle East's legal system's religious underpinnings upon the continued acceptance of international commercial arbitration. Given the growing calls for a return to the Shari'a and increasing global interdependence, the western legal community can no longer be satisfied to leave the Shari'a as a preserve of Middle East specialists, Arabists and comparative law experts. It is a trite observation that cultural or more aptly in the Middle East, religious considerations, can play a vital role in the acceptance and successful functioning of international commercial arbitration. The religious variable may impact on the following: the scope of arbitration; the nature of arbitration; the choice of law; the appointment of arbitrators; liability of arbitrators; limitations periods; interest awards; public policy considerations; evidentiary considerations; enforceability of decisions, etc. This paper will explore the development and acceptance of international commercial arbitration in the Middle East and analyze the issues and areas which create tension between international commercial arbitration and the Shari'a. There is certainly a need to reform Islamic law from within to deal with contemporary norms, transactions and institutions, but there is an equal need to better accommodate and address the issues of concern from an Islamic perspective. The assumption and belief that the Shari'a is being sidelined, and that the current international commercial arbitration framework is exclusively derived from the Western legal heritage may create obstacles in the acceptance and continued legitimacy of international commercial arbitration in the Middle East, and even in the other Islamic nations. This is clearly unacceptable if we recall that the twin objectives of the legal framework underpinning international commercial arbitration are to ensure enforceability of arbitration agreements/clauses and arbitral awards and to insulate the arbitration process as much as possible from interference by domestic courts and other national or international institutions. This can only be achieved when there is mutual respect and understanding of the various laws, practices, cultures and religious worldviews prevalent in the world today. There is a clear need for dialogue. The aim of such a dialogue will be to help develop an international commercial arbitration regime in which the business community can have confidence, while staying true to the core principles of tahkim (arbitration) under the Shari'a. This will help remove a potential crutch that may be used by those who oppose the international commercial arbitration movement as being one of purely Western import.

Chinese perceptions of western‐branded denim jeans: a Shanghai case study

Purpose – To provide marketing and managerial insights to western companies selling denim jeans in China, specifically in Shanghai. Understanding consumers' perceptions of Western‐branded jeans in a cultural‐specific marketplace is the primary focus. Design/methodology/approach – Combined methods included observation of shoppers wearing jeans in two malls in Shanghai and an anonymous survey. A total of 219 surveys were analyzed and consumer‐perceived jeans attributes or related concepts were tabulated. Findings – About one third of the observed shoppers were wearing jeans, which signified a relatively high popularity of jeans as casual wear in Shanghai. The design and fashion of jeans were deemed highly critical but were superseded by comfort and fit. Shanghai consumers distinguished brand origins only between the West and the East instead of by specific countries. Dissatisfaction with price and fit were identified. Research limitations/implications – Questions were designed to screen out respondents who had not purchased and had no desire to purchase western denim jeans brands. Limiting the sample in this way offered some control for behavioral patterns, but conclusions are limited. Practical implications – Content analysis of an open‐ended question about consumers' perceptions of western‐branded jeans helped discern attributes of jeans that consumers deemed most important. Marketers of western jeans can develop effective marketing strategies in tune with consumer preferences. Originality/value – This paper researched consumers' perceptions of western denim jeans, a type of world dress, in a booming but foreign market in western eyes. The open‐ended question solicited consumers' free responses, which in turn helped pin‐point attributes of jeans that Chinese consumers value the most.

Basmati Rice: Geographical Indication or Mis‐Indication

Indian farmers may not understand the Lockean or the Hegelian justification for intellectual property. Neither do they understand the politics (realpolitik) of the negotiations of the Agreement on Trade‐Related Aspects of Intellectual Property Rights (TRIPS). Many of them had no idea that in September 2003 their fate might have been decided in the Cancun Ministerial meeting of World Trade Organization (WTO) member countries. But they do understand simple economics, i.e. if the American company which has registered a patent for basmati rice continues to sell rice as American‐style basmati rice, it may hurt their exports. If the Indian Government had a key to the past, they would have definitely renegotiated‐TRIPS to protect $350 million export market of basmati rice. Even if we opprobrium TRIPS and characterize it as an instrument of exploitation used by developed countries to protect their own interest, the fact of the matter is, there is no escape from it. Withdrawing from TRIPS entails too many implications for the Indian economy, and it would be cynical to suggest such an idea. Developing and least developed countries have fallen to the economic and political pressure of the Developed countries, and the former group of countries will never be able to convince the latter to renegotiate TRIPS to bring a balance to it, even if their call is eloquent, justified and reflects reality. It would be like knocking on the lid of a coffin: knock, as much as you like, you will not wake him. Post‐Cancun (WTO Ministerial Meeting), it is vital for the Indian Government to formulate strategies to protect its interest in TRIPS. The strategy should focus on the options available within the TRIPS framework. We might have lost advantage in the field of patents to western pharmaceutical companies, but if a proper strategy is formulated we will be able to protect our basmati exports.