Showing papers in "European Business Review in 1998"
TL;DR: In this article, the relationship between corporate social responsibility (CSR) and the economic performance of corporations was investigated. But, the relationships were weak and lacked an overall consistency, and the results supported the conclusion that (past, concurrent and subsequent) economic performance is related to both CSR performance and disclosure.
Abstract: This paper investigates the relationship between corporate social responsibility (CSR) and the economic performance of corporations. It first examines the theories that suggest a relationship between the two. To test these theories, measures of CSR performance and disclosure developed by the New Consumer Group were analysed against the (past, concurrent and subsequent to CSR performance period) economic performance of 56 large UK companies. Economic performance included: financial (return on capital employed, return on equity and gross profit to sales ratios); and capital market performance (systematic risk and excess market valuation). The results supported the conclusion that (past, concurrent and subsequent) economic performance is related to both CSR performance and disclosure. However, the relationships were weak and lacked an overall consistency. For example, past economic performance was found to partly explain variations in firms’ involvement in philanthropic activities. CSR disclosure was affected (positively) by both a firm’s CSR performance and its concurrent financial performance. Involvement in environmental protection activities was found to be negatively correlated with subsequent financial performance. Whereas a firm’s policies regarding women’s positions seem to be more rewarding in terms of positive capital market responses (performance) in the subsequent period. Donations to the Conservative Party were found not to be related to companies’ (past, concurrent or subsequent) financial and/or capital performance.
394 citations
TL;DR: In this paper, a study replicates and extends Alexander's study for the purpose of identifying the recurring implementation problems, one hundred questionnaires were mailed to business companies in the Bradford area (UK).
Abstract: This study replicates and extends Alexander’s study for the purpose of identifying the recurring implementation problems. One hundred questionnaires were mailed to business companies in the Bradford area (UK). Twenty‐seven questionnaires have been returned of which only 24 are usable. Six strategy implementation problems were experienced during implementation by over 70 per cent of the sample group. Anova results also show that firms experiencing high success in implementation have less problems compared to low success group. Communication, management support, and good information system are the key tools for smooth implementation processes.
176 citations
TL;DR: In this article, the authors conducted a study on a sample of UK-based retailers that were involved in international joint ventures and international buying alliances and identified the differences and comparison between these forms of alliances in terms of the competencies and skills that were being transferred between members of the alliances.
Abstract: The article is based on research carried out in 1995 on a sample of UK‐based retailers that were involved in international joint ventures and international buying alliances. The research identified the differences and comparison between these forms of alliances in terms of the competencies and skills that were being transferred between members of the alliances. The findings suggest that joint venture relationships appear to be closer and of a more strategic nature in achieving competitive advantage than buying alliances. Joint ventures appear to make a greater contribution to product strategy and learning than do alliances. However, little difference was found between the two alliance forms in terms of skill transfers.
54 citations
TL;DR: In this paper, the authors review the Japanese distribution system, its positives and negatives, its cultural heritage, and discuss the implications for the future for it, based on a survey of Japanese distribution systems.
Abstract: We review the Japanese distribution system, its positives and negatives, its cultural heritage, and discuss the implications for the future for it.
47 citations
TL;DR: In this article, the authors examine changes in the European car industry and in particular the impact these changes are having on the car makers and their relationships with their suppliers, arguing that there is a lack of trust and co-operation between the carmakers and their suppliers.
Abstract: The objective of this paper is to examine changes in the European car industry and in particular the impact these changes are having on the car makers and their relationships with their suppliers. With excess production capacity and the poor outlook for car sales, the European car industry requires structural changes to balance supply and demand. In an effort to address these problems, the car makers are re‐appraising their relations with their suppliers. They are now pursuing more intensive and interactive relationships with their suppliers, collaborating in areas such as new product development, supplier development, and information sharing on a range of issues. However, there is evidence to illustrate that there is a lack of trust between the car makers and their suppliers. It is argued that if the European car makers are to compete globally then there will have to be more trust and co‐operation between the car makers and the components industry.
43 citations
TL;DR: In this paper, the authors examined the role played by foreign direct investment in developing local linkages in Singapore's electronics industry and found that backward material linkages developed as a result of two processes: the development of indigenous local suppliers, mostly within the fabricated parts sector, and foreign investment by overseas suppliers, especially in the hard disk drive sector.
Abstract: The paper examines the role played by foreign direct investment in developing local linkages in Singapore’s electronics industry. Backward material linkages have developed as a result of two processes: the development of indigenous local suppliers, mostly within the fabricated parts sector, and foreign investment by overseas suppliers, especially in the hard disk drive sector. The economic development potential of these suppliers varies, and local suppliers in contract manufacturing offer the best hope for future indigenous growth within the supply base. Public policies targeted towards supplier development and upgrading the quality of multinationals play a significant role in facilitating local linkage development in Singapore.
33 citations
TL;DR: In this article, the authors examine the nature and role of foreign direct investment in Bulgaria and highlight the importance of FDI in bolstering the market system, rebuilding the economy and underpinning the success of the privatisation process.
Abstract: This article examines the nature and role of foreign direct investment in Bulgaria. Set in the context of the transitional economies of the countries of Central and Eastern Europe, the article serves to illustrate the importance of foreign direct investment in bolstering the market system, rebuilding the economy and underpinning the success of the privatisation process. An account of the pattern of foreign direct investment in terms of time period, sector and nationality of the investor is presented from official data sources. Since the collapse of communism the Bulgarian economic and political climate has been one of the least conducive in Central and Eastern Europe to the attraction of foreign businesses; however, recent reforms, and in particular the election of a new government, provide the beginning of a more favourable environment for foreign direct investment in Bulgaria.
26 citations
TL;DR: In this paper, the authors report on a field-work survey which was undertaken to analyse the nature of subsidiary development in the UK economy, which revealed that subsidiary development is associated with the ownership (i.e., geographical location) of the parent company, as well as the entry mode which the subsidiary company chooses to enter the host economy.
Abstract: The development of multinational subsidiaries is of interest to academics, policy‐makers and the business community. Although there is a considerable literature on subsidiary typologies, there is a dearth of empirical investigation to accompany this. This article reports on a field‐work survey which was undertaken to analyse the nature of subsidiary development in the UK economy. A large sample of companies were asked to provide details of their value‐added activities and degree of strategic autonomy granted by their parent organisations. These data were collected in respect of their entry to the UK and at the time of the survey so that a comparison would yield conclusions about subsidiary development. The analysis of the data reveals that subsidiary development is associated with the ownership (i.e. geographical location) of the parent company, as well as the entry mode which the parent company chooses to enter the host economy. The precise nature of these relationships is complex and the article concludes by suggesting some future research agendas in this area.
25 citations
TL;DR: In this paper, the authors present a critical assessment of public procurement policy in the context of developing policies on electronic commerce and the Government Procurement Agreement (GPA) within the World Trade Organisation (WTO).
Abstract: Public procurement is one of the principal instruments used by the Commission to open up the European Single Market. This paper presents a critical assessment of public procurement policy in the context of developing policies on electronic commerce and the Government Procurement Agreement (GPA) within the World Trade Organisation (WTO). The paper focuses on how business can access public procurement opportunities in Europe, and what opportunities exist for improved electronic means of access to information. The proposed future for electronic tendering in Europe, SIMAP, is discussed and compared to similar systems in the USA. The paper suggests that a new legislative framework is required for public procurement and electronic commerce in Europe to ensure that governments and businesses do not suffer a competitive disadvantage in the electronic future of world trade.
21 citations
TL;DR: In this paper, the authors investigated direct response advertising in upscale fashion magazines in the European Union as well as the USA and found that direct response advertisements were most prevalent among advertisements of women's apparel and primarily in US editions of Vogue.
Abstract: In the advertising of self‐projective products, marketers have focused on image advertising. However, today advertisers are integrating direct response with image based advertising, in essence, to “get more bang for the buck”. Hence, the purpose of the study was to investigate direct response advertising in upscale fashion magazines in the European Union as well as the USA. Eight hundred and seventy advertisements of perfumes, women’s apparel and cosmetics were evaluated via the editions of Vogue. Direct response advertisements were most prevalent among advertisements of women’s apparel and primarily in US editions of Vogue. Furthermore, advertisements for perfumes and women’s apparel were image based while advertisements for cosmetics were balanced. Implications of the findings are given regarding advertising fashion products in the European Community.
TL;DR: The European findings presented in this paper attempt to unravel the complexities of an extensive range of issues related to integration, primarily focusing on task orientation, organisational structure and culture, and provide an insight into the relationship between integration mechanisms and speed of NPD.
Abstract: The ever‐increasing pace of technological change is the primary impulse that guides the development strategies of nations enjoying high economic growth. The diverse range of technological possibilities creates unprecedented change and as a consequence organisations are required to be responsive and adaptable to such conditions. For many, product innovation is a fundamental strategy for sustaining organisational development in extreme turbulent environments. Organisations are increasingly concentrating on responsiveness and flexibility through innovation. The rapid delivery of new products clearly requires effective integration in enabling organisations to be adaptive and responsive to market conditions. The European findings presented in this article attempt to unravel the complexities of an extensive range of issues related to integration, primarily focusing on task orientation, organisational structure and culture. The study provides an insight into the relationship between integration mechanisms and speed of NPD.
TL;DR: In this article, the authors examined accounting regulations in three countries: Spain, Sweden and Austria, highlighting the key regulatory issues of the true and fair view requirement and the link between taxation and accounting.
Abstract: Despite attempts to secure harmonisation of accounting practice, significant variations in accounting rules and practice continue to arise in European countries, variations which give rise to compliance costs for multinational companies. First, this paper considers the relevance of international accounting harmonisation for European business. It then proceeds to examine accounting regulations in three countries: Spain, Sweden and Austria, highlighting the key regulatory issues of the “true and fair” view requirement and the link between taxation and accounting. The three countries are selected because of the interesting contrasts which they provide; these contrasts are examined in detail in the paper. The work is based on a series of interviews carried out with leading accounting practitioners in the three countries during 1996‐1997. The paper concludes that there are significant obstacles to accounting harmonisation in Europe and that there is potential for continuing diversity of national accounting practice.
TL;DR: The authors argue that the competitive advantage of Japanese enterprises is not to be found in traditional practices, but rather, it is due to the way these practices are upgraded and reinforced by ideological factors such as the community of fate, as well as the formation of governance structures that cultivate the development of contextual knowledge that leads to the efficient and effective production of complex products.
Abstract: Responding to Michael Porter’s claim that “Japanese companies rarely have a strategy”, this paper argues that the competitive advantage of Japanese enterprises is not to be found in traditional practices. Rather, it is due to the way these practices are upgraded and reinforced by ideological factors such as the “community of fate”, as well as the formation of governance structures that cultivate the development of contextual knowledge that leads to the efficient and effective production of complex products.
TL;DR: In this article, the authors describe financial management practices in China by means of a qualitative, case study approach, and interview a total of 16 firms in the Shanghai region were interviewed, focusing on investment in fixed assets; financing methods and sources; dividend policy; working capital management; internationalization; and financial organization and financial departments.
Abstract: The objective of this study is to describe financial management practices in China by means of a qualitative, case study approach. A total of 16 firms in the Shanghai region were interviewed. The research results refer to: investment in fixed assets; financing methods and sources; dividend policy; working capital management; internationalization; and financial organization and financial departments.
TL;DR: In this article, the authors examined the role that potentially could be played by the retailing sector in the economic and social transformation in Russia and concluded that inward investment by retailers from the western European states will take the form of skills investment rather than financial and operational investment.
Abstract: The paper examines the role that potentially could be played by the retailing sector in the economic and social transformation in Russia. The move towards a consumer goods society, by its very definition, necessitates the developments of channels whereby consumer goods can reach their end customer and consumer. In this context various models of relating evolution are considered as well as an examination of the possible methods by which retailing will develop over time. The potential for inward investments is examined but the paper concludes that inward investment by retailers from the western European states will take the form of skills investment rather than financial and operational investment. The most important element in the future evolution of retailing will be the development of the multiple format as well as the procurement from indigenous consumer goods suppliers “driven” by the multiple retailers.
TL;DR: A look at Germany's labour statistics shows a frightening picture of massive job destruction in the wake of globalisation as discussed by the authors, as firms contend with heightened international competition and incomparably low wages in the former Eastern bloc and Asia, they have turned almost ubiquitously to costcutting through shedding labour inside Germany itself.
Abstract: In the 1980s, globalisation was much vaunted as offering the Western world a dazzling new array of business opportunities. In the 1990s, however, the negative impact on the labour market has become all too evident. A look at Germany’s labour statistics shows a frightening picture of massive job destruction in the wake of globalisation. As firms contend with heightened international competition and incomparably low wages in the former Eastern bloc and Asia, they have turned almost ubiquitously to cost‐cutting through shedding labour inside Germany itself. Jobs either disappear altogether or are relocated. Karl Marx’s predictions about capitalism are eventuating in a process by which firms become ever more profitable, but at a cost of large‐scale unemployment. Through computerisation, strategic alliances, the manipulation of trade unions and so on, the process of rationalisation and wage reduction proceeds at an alarming pace. If grave social consequences are to be averted, the problem needs to be tackled on several fronts simultaneously. Attitudinal changes on the part of both management and workers, a modified taxation regime, better public relations about Germany as an industrial location and various other strategies offer some hope to a country that is clearly undergoing a globalisation crisis.
TL;DR: The authors presents examples of culture clashes in global joint ventures and shows how to overcome them and presents the Multicultural Management (MCM) Process, which has been developed and presented to over 1,000 managers worldwide as an effective method in enhancing their culture competency when dealing with international management issues.
Abstract: This article presents examples of culture clashes in global joint ventures and shows how to overcome them. As organizations expand their business globally, they are faced with cultural differences in individual, organizational, and national cultures. Typical daily clashes are highlighted among American, Japanese, Asian, and European managers during routine business activities such as business meetings, presentations, and technology transfers. The uniqueness of each culture is compared and contrasted during such processes. The author also presents the Multicultural Management (MCM) Process, which has been developed and presented to over 1,000 managers worldwide as an effective method in enhancing their culture competency when dealing with international management issues.
TL;DR: In this article, the authors consider a variety of issues in this context including rampant and socially destructive preoccupation with cost cutting and rationalisation, negative managerial behaviour, the system of corporate governance, lack of innovation and finally, corruption and fraud.
Abstract: Much has been written recently about Germany’s prevailing economic problems, but the emphasis has been placed on globalisation, the rigidities of the labour market and various other difficulties related to Standort Deutschland. However, there are numerous problems with respect to German management, which are unquestionably major contributory factors to Germany’s current difficulties, especially mass unemployment. This paper considers a variety of issues in this context including the rampant and socially destructive preoccupation with cost cutting and rationalisation, negative managerial behaviour, the system of corporate governance, lack of innovation and finally, corruption and fraud. Some means of achieving a turnaround are suggested. The paper is based primarily on German‐language references.
TL;DR: In this paper, the authors explore the international dimension of competition policy and argue that as a regional entity, the EU represents the best model for an international accord on competition policy, and that any efforts to establish some form of global regime necessitates consideration of the process and likelihood of policy convergence, and crucially demands that issues of governance including accountability and transparency are openly discussed.
Abstract: As transnational capital continues to seek fair access to all international markets and increasingly, a global level playing field, so competition policy has emerged as a highly salient issue. This article sets out specifically to explore the international dimension of competition policy. Although it readily accepts the economic and trade rationale for some form of common international rules, and to this end briefly accounts for earlier attempts and current strategies of policy coordination within international bodies from the G7, the WTO and the European Union, it raises doubts as to its immediate attainability. Competition policy not only remains a complex issue, but any efforts to establish some form of global regime necessitates consideration of the process and likelihood of policy convergence, and crucially demands that issues of governance including accountability and transparency are openly discussed. As a regional entity it is argued that the EU represents the best model for an international accord on competition policy.
TL;DR: In this article, a series of data examines the pattern of activity of the UK, in terms of equity joint ventures (EJV) formation, with partners in Western Europe, Scandinavia, USA and Japan and within technological industries.
Abstract: This paper presents a series of data examining the pattern of activity of the UK, in terms of equity joint ventures (EJV) formation, with partners in Western Europe, Scandinavia, USA and Japan and within technological industries. The data set consists of 1,415 equity joint ventures (EJVs) formed between 1945‐1989. The pattern of activity is examined over time, in terms of industry and geographical distribution. The data presented also include information concerning domestic EJV formation for each of the countries studied which previous research has not considered. The paper also comments on the need to focus on “soft” vs “hard” issues in examining the context and performance outcomes of international strategic alliances and equity joint ventures (EJVs) and avenues for future research.
TL;DR: The authors examined patterns of collaboration between companies over a six year time period and found that most alliances are formed across national borders rather than within borders and typically take the form of a joint venture or non-equity agreement, and that firms from North America and the Pacific Rim are most likely to be involved in a collaborative venture.
Abstract: This paper examines patterns of collaboration between companies over a six year time period. Research results indicate that while the formation of alliances is on the rise, the upward trend may not be as strong as commonly thought, that most alliances are formed across national borders rather than within borders and typically take the form of a joint venture or non‐equity agreement, and that firms from North America and the Pacific Rim are most likely to be involved in a collaborative venture.
TL;DR: The concept of behavioral style and a consideration of its elements are useful in helping to understand oneself and the interpersonal behaviors of others as mentioned in this paper. But it is not enough just to understand one's behavior or the behavior of others in the multinational management team; one should also seek to adapt the skills of style flex than can enable the parties to function in a comfort zone congruent with the situation.
Abstract: Management teambuilding within a multinational enterprise is greatly enhanced if the interactive style reflected by each person is considered. The blend of behavioral styles can affect the collective achievements of the entire management team, as well as the accomplishments of each member of the team. In this context, behavioral style is a pervasive and enduring set of interpersonal characteristics focussing on how one acts ‐ on what one says and does. As noted in this article, there are four behavioral styles ‐ Relater, Analyzer, Director, Socializer ‐ no one of which is necessarily better or worse than any other. Effective management leadership teams are made up of and value individuals who reflect each of the four styles. In fact, it can be stated that the most productive leadership team in the multinational firm will usually have a balance of individuals who reflect each behavioral style. The functional dynamics of the team are thereby affected by the styles of its members; and, of course, each of the styles has strengths as well as characteristic weaknesses. Each of the behavioral styles also has a typical back‐up style that is the mode of behavior shifted into at the time individuals experience high levels of stress. The concept of behavioral style and a consideration of its elements are useful in helping to understand oneself and the interpersonal behaviors of others. However, it is not enough just to understand one’s behavior or the behavior of others in the multinational management team; one should also seek to adapt the skills of style flex than can enable the parties to function in a comfort zone congruent with the situation. Style flex thereby provides a way of interacting and communicating within another person’s comfort zone without losing one’s integrity or naturalness of expression. In short, style flex is a key to interacting effectively in the multinational enterprise.
TL;DR: In this paper, the authors proposed that the return on investment associated with the development of the information superhighway in France is closely linked to national and corporate culture, and they highlighted differences between the Internet culture and the French culture.
Abstract: Drawing on previous studies and experience this paper proposes that the return on investment associated with the development of the information superhighway in France is closely linked to national and corporate culture. Analysis of the French business culture suggests that effort should be made in cultural alignment to increase the potential return on investing in the information superhighway. Differences between the “Internet” culture and the French culture are highlighted.
TL;DR: In this paper, the authors present an initial exploration of key parameters affecting labour, and then propose to do so both more broadly and in greater depth, in order to understand the implications of the combined, accumulated burden of all relevant problems and difficulties.
Abstract: Organised capitalism, as a distinct mode of political economy, is generally held to be under serious threat, not least from the apparently inexorable logic and pressures of “globalisation”. The challenge represented by these forces is intensified in Germany by the constraints imposed by the requirement to fulfil those Maastricht Treaty criteria appertaining to establishing Economic and Monetary Union. However, Germany additionally faces the unprecedented task of integrating the former GDR, a regime which was both literally and metaphorically bankrupt in so many respects. So far, that integration has not succeeded, least of all industrially. The implications are manifold and complex ‐ yet what seems to be quite certain is that the combined, accumulated burden of all the relevant problems and difficulties has come to bear primarily on working people in Germany and on their representative organisations. This first paper represents an initial exploration of key parameters affecting labour, the second proposes to do so both more broadly and in greater depth.
TL;DR: The risk of debt default will be greatly increased over the next decade by chronic budget and funding problems regionwide, including massive infrastructure investment needs and rising social spending pressures, will lead to greater reliance on foreign borrowing.
Abstract: Many countries in both the LAC region and Asia Pacific have large and growing foreign debts. Country risk ratios and the profile of foreign debts for the majority of these countries are near or exceed widely regarded warning thresholds. Chronic budget and funding problems regionwide, including massive infrastructure investment needs and rising social spending pressures, will lead to greater reliance on foreign borrowing. That will contribute to debt accumulation and rising debt‐servicing burdens. Economic slowdown, massive banking and financial sector restructuring, erosion of export competitiveness and declining foreign exchange reserves will increase the likelihood that these countries will be unable to fully meet their foreign debt‐servicing obligations. The risk of debt default will be greatly increased over the next decade. Mounting public criticism will make it tougher to arrange future international financial rescue packages, such as those extended to Mexico and Thailand, for cash‐strapped sovereigns. As Canada’s economic profile rises in emerging markets, greater monitoring of country risks is warranted.
TL;DR: In this paper, the current and potential impact of Southeast Asia's regionalism on the European Union is analyzed, and a detailed evaluation of the opportunities and threats that regionalist developments in Southeast Asia pose to the EU is presented.
Abstract: This paper analyses the current and potential impact of Southeast Asia’s regionalism on the European Union. It begins by giving an overview of the different manifestations that this regionalism takes (ASEAN and AFTA, sub‐regional economic zones, APEC) and comments on the overlapping linkages between them. The EU’s stake in Southeast Asia is then discussed in the context of broadening the EU’s interregional relations with East Asia. A detailed evaluation of the opportunities and threats that regionalist developments in Southeast Asia pose to the EU is presented thereafter. It is argued that the balance of effects will vary less for “insider” EU firms, which have established operations within ASEAN, and more for “outsider” EU firms. The potential benefits the former anticipate from Southeast Asian regionalism are considerable.