Showing papers in "Thunderbird International Business Review in 2003"
TL;DR: The United Nations Conference on Trade and Development (UNCTD) 2001: Promoting Linkages as mentioned in this paper, the World Investment Report 2001, was the first publication of this report.
Abstract: United Nations Conference on Trade and Development (UNCTAD). 2001. World Investment Report 2001: Promoting Linkages. New York and Geneva:United Nations. 384 pages. ISBN: 92-1-112523-5.
278 citations
TL;DR: In this paper, the same political events can have varying effects on different transnational firms depending on their strategic resources and capabilities, and can benefit specific firms under certain circumstances, and the case of the Nigerian oil industry is considered.
Abstract: The international business literature has recognized that political risk can be firmspecific, but it has so far focused almost exclusively on the national business environment rather than the firm itself. Scholars have still largely confined firms to the role of relatively passive bystanders who, at best, can forecast political risks with some precision or guard against risk (e.g., through insurance). The basic premise of this article, however, is that transnational corporations (TNCs) can be active actors capable of acquiring and upgrading firm-specific resources and capabilities for coping with or even benefiting from political risk. The research is based on the case of the Nigerian oil industry. The research provides evidence to suggest that the same political events can have varying effects on different transnational firms depending on their strategic resources and capabilities, and can benefit specific firms under certain circumstances.
102 citations
TL;DR: In this article, the authors present the experiences of Lucent Technologies Inc. and The Royal Dutch/Shell Group of Companies illustrate two contrasting approaches: the former has adopted a strongly multidomestic strategy, while the latter has a more global approach.
Abstract: Although most U.S. multinational corporations have substantial workforce diversity management programs in their U.S. operations, they are only beginning to consider parallel efforts in their overseas subsidiaries and affiliates. The internationalization issue is particularly prominent in the European Union, where competitive, demographic, legal, and political developments make workforce diversity issues unavoidable within the next few years. Instead of simply replicating U.S. programs, however, diversity initiatives in Europe need to adapt to each employer's strategic objectives, degree of organizational integration, and local needs. The experiences of Lucent Technologies Inc. and The Royal Dutch/Shell Group of Companies illustrate two contrasting approaches. The former has adopted a strongly multidomestic strategy, while the latter has a more global approach. © 2003 Wiley Periodicals, Inc.
75 citations
TL;DR: Based on a survey of 96 SOEs in four special economic zones, the research found that human resource management had a substantial impact on enterprise performance as measured by export growth and the percentage of export sales as discussed by the authors.
Abstract: Export growth has been a major contributor to the economic development of China. Underpinning this growth was the development of special economic zones, the reform of SOEs, and the adoption of new models of human resource management. Few empirical studies, however, have been conducted to explore the effects of human resource management on the export performance of Chinese firms. This was the purpose of this study. Based on a survey of 96 SOEs in four special economic zones, the research found that human resource management had a substantial impact on enterprise performance as measured by export growth and the percentage of export sales. The article concludes by suggesting avenues for future research. © 2003 Wiley Periodicals, Inc.
51 citations
TL;DR: In this article, the authors focus on a straightforward and practical approach by focusing on one question: Should there be more talk of the social duties of companies, and if so, how are we to tackle the issue?
Abstract: These past years, companies have become aware that their mission went beyond mere profit-making. Corporate social responsibility toward all stakeholders is today, more than ever, an important stake for communication. Companies must know how to communicate if a social or environmental crisis occurs. However, effective communication must be based on facts. Management must consider a new criterion for success: the ability to respond to all the actions of the company, at all levels.
Faced with widespread confusion regarding what is conventionally referred to as “corporate social responsibility” and regarding all matters related to the subject, which may or may not be the result of a trend, we opt for a straightforward and practical approach by focusing on one question: Should there be more talk of the social duties of companies, and if so, how are we to tackle the issue?
We have observed that there are many conflicting opinions on the matter, at least in certain countries, including France. This raises points hardly spoken of in the numerous works broaching the subject. Opinions may be based on differing attitudes on legitimacy (do companies have an obligation to their community besides being formed to make a profit?), on the legislation provided by countries on “corporate citizenship” (laws of the home and host countries), on the expectations of the society in which the firm exists, and on the logic of those putting forth those opinions. © 2003 Wiley Periodicals, Inc.
50 citations
TL;DR: In this paper, a systematic analysis of the connection between FDI and the characteristics of source countries provides clearer insights into the roles of home-country factors in the vast but still fast-growing foreign investment in China.
Abstract: Given the large size and rapid growth of foreign direct investment (FDI) in China, a systematic analysis of the connection between FDI and the characteristics of source countries provides clearer insights into the roles of home-country factors in the vast but still fast-growing foreign investment in China. Unlike the existing mainstream studies of FDI in China, this analysis focuses on the effects of country-factor differentials (between investing countries and China) on the FDI flow to China. Based on data from 21 source countries over a period of 17 years, this paper examines the impacts of eight variables in three sets of country factors, namely market conditions, risk, and financial factors. The statistical results show that, while the market-condition variables and the high values of source country currencies positively influenced the flow of FDI to China, the relatively high costs of capital borrowing and political and operational risks in China inhibited the flow of FDI. © 2003 Wiley Periodicals, Inc.
48 citations
TL;DR: In this article, the authors explored similarities and differences in human resource management (HRM) in the European Union (EU) and found that common factors in the development of European HRM are the importance of consultation, the emergence of flexible work patterns, the role of work and the employer in the life of employees, and the introduction of the Euro.
Abstract: This study explores similarities and differences in human resource management (HRM) in the European Union (EU). Common factors in the development of European HRM are the importance of consultation, the emergence of flexible work patterns, the role of work and the employer in the life of employees, and the introduction of the Euro. National, company, and regional factors create divergence in European HRM. National factors include societal hierarchy, different cultures and mental models, societal structure, and language. Company factors include size of companies, public versus private, and multinational or local. Regional factors differentiate along north-south and east-west axes. The EU had relatively little impact on HRM in terms of harmonization of labor and tax laws but had major impact on the opening up of markets to foreign competition and privatization of public sector companies. While cultural diversity remains strong, the influence of large multinational companies may lead to more regional integration in the practice of HRM. European HRM is much more comfortable operating in a polycentric mode than U.S. HRM, which seeks universality and standardization. © 2003 Wiley Periodicals, Inc.
36 citations
TL;DR: In this paper, the authors outline some of the key issues confronting Australia as it moves towards its policy goal of achieving e-government, which is recognized as a leading country in the move to an information economy.
Abstract: Australia is recognized as a leading country in the move to an information economy, and the Australian government has played a pivotal role in this transformation. This commentary outlines some of the key issues confronting Australia as it moves towards its policy goal of achieving e-government. Although governments differ in the pace and nature of reforms required to bring about the transformation to e-government, many of the underlying issues are the same for most governments. © 2003 Wiley Periodicals, Inc.
35 citations
TL;DR: In this paper, the authors emphasize that knowledge transfer across a firm's boundaries, in a transition context, implies a specific involvement of Western investors, and they need to promote specific relationships within affiliates.
Abstract: This article emphasizes that knowledge transfer across a firm's boundaries, in a transition context, implies a specific involvement of Western investors. They need to promote specific relationships within affiliates. This article emphasizes two points. First, partners have few common practices and do not share the same perception of the firm. This is the problem with building new capabilities. Second, Western firms have to mobilize organizational resources to build efficient affiliates (new human resources management, introduction of new functions, management by expatriates). Setting up new management rules to run an affiliate in transition countries is costly and often underestimated by foreign investors. © 2003 Wiley Periodicals, Inc.
35 citations
TL;DR: In this paper, the authors empirically examined the factors that influence foreign investors to engage in foreign direct investment (FDI) in Oman and found that political and economic stability are the two most important reasons for investing in Oman.
Abstract: This paper empirically examines the factors that influence foreign investors to engage in foreign direct investment (FDI) in Oman. One hundred and six foreign equity ventures participated in the study. The analysis of the data reveals that political and economic stability are the two most important motives for investing in Oman. Contrary to expectations, purchasing power of customers, market size, and availability of low-cost inputs are the least desirable factors, respectively. The statistical analysis indicates that all motives do not equally appeal to all foreign investors from different countries.
24 citations
TL;DR: In this paper, a variety of shortcomings in our practical understanding of the internationalization process and the theoretical underpinning of the market entry decisions that emerge in China have been identified, leading to firms to make a number of hasty decisions, to revise their plans, and in some cases to withdraw from the market.
Abstract: Since the inception of the open-door policy, in 1978, China has acted as a magnet for firms wishing to locate there to gain access to the billion plus consumers. However, the scramble to establish a presence in the country has led firms to make a number of hasty decisions, to revise their plans, and in some cases, to withdraw from the market. Research in the PRC, primarily in Shanghai, among leading international consumer goods firms has revealed a variety of shortcomings in our practical understanding of the internationalization process and the theoretical underpinning of the market entry decisions that emerge. It has also yielded insights into how adaptation to the advancing PRC business environment may be successfully effected. © 2003 Wiley Periodicals, Inc.
TL;DR: The authors suggests that crosscultural variation in politeness behaviors, that is, differential culture-specific norms for treatment of face, comprises an important dimension of crosscultural organizational behavior, and provides a conceptual framework explicating the above, reviews empirical literature on cross-cultural variation of politeness norms, and suggests important implications for organizational theorists and for managers interested in crosscultural communication.
Abstract: This conceptual article suggests that crosscultural variation in politeness behaviors, that is, differential culture-specific norms for treatment of face, comprises an important dimension of crosscultural organizational behavior. The gentle and respectful handling of others' face is a vital social behavior in any cultural context. However, research shows that cultures have evolved differential norms for treating face. These differential norms are at the heart of many crosscultural communication problems. This article provides a conceptual framework explicating the above, reviews empirical literature on crosscultural variation of politeness norms, and suggests important implications for organizational theorists and for managers interested in crosscultural communication. © 2003 Wiley Periodicals, Inc.
TL;DR: In this paper, the authors identify motivations that influence factor-and market-seeking inward FDI in the United States, and identify motivators that differentiate and explain these two types of investment behaviors.
Abstract: As foreign direct investment becomes an important element of the global marketplace it is important to understand why firms use FDI as an investment option. This article reports research that identifies motivations that influence factor- and market-seeking inward FDI in the United States. Based on a study of 127 foreign companies investing in the United States, the research identifies motivators that differentiate and explain these two types of investment behaviors. © 2003 Wiley Periodicals, Inc.
TL;DR: The government of India, during the late 1960s and early 1990s, was exerting pressure on multinational corporations throughout the country to tailor their activities to suit domestic needs as discussed by the authors.
Abstract: The government of India, during the late 1960s, was exerting pressure on multinational corporations throughout the country to tailor their activities to suit domestic needs. During this period, most foreign oil companies, such as Burmah Shell, Mobil, Caltex, Balmer-Lawrie, and a few large foreign engineering companies, such as Jessop, Bird, Braithwaite, Richardson & Cruddas, were all nationalized in phases. The government then imposed lots of restrictions on many industries importing goods, and levied higher import duties on a few selected items. These actions were taken by the government to justify the development of local industries, and to generate more domestic employment for large numbers of unemployed, though educated, youth. However, by the 1990s, the government of India had to come to terms with the activities of the World Trade Organization. All trade barriers and restrictions previously imposed had to be removed to allow much needed foreign exchange for the development of the economy to be raised. This meant more business opportunities for some of the multinationals that had been closely observing government policy changes.
TL;DR: In this paper, the authors examined Kodak's entry strategy in Russia and argued that Kodak was able to succeed through strong personal relations with stakeholders and decisions to invest in local production.
Abstract: Eastman Kodak is a global imaging company with extensive reach and capabilities. This article examines Kodak's entry strategy in Russia. It explains that Kodak was able to succeed through strong personal relations with stakeholders and decisions to invest in local production. Kodak established consumer acceptance through open and frequent communications with their customers. This, combined with a multifaceted marketing strategy, helped them survive the Russian financial crisis. We argue that Kodak's success has been greatly facilitated by a set of policies that include appropriate adaptations of Western marketing and human resources practices. © 2003 Wiley Periodicals, Inc.
TL;DR: In this paper, the authors identify which rules, among the many the World Trade Organization (WTO) system encompasses, are of direct concern to firms and expose in a straightforward manner how they may be coped with or taken advantage of by international marketers.
Abstract: With the conclusion of the Uruguay Round and the establishment of the World trade Organisation (WTO) in April 1994, a comprehensive set of rules emerged that affect in a pervasive manner the activities of firms on foreign markets. This body of rules is overwhelmingly presented in the literature from a trade policy or legal viewpoint. The result is that for many marketers WTO rules are somewhat confusing, and their impact on international business operation is difficult to assess. This paper is purely analytical and does not aim to provide any contribution to international marketing theory. Its purpose is to identify which rules, among the many the WTO system encompasses, are of direct concern to firms. It aims to expose in a straightforward manner how they may be coped with or taken advantage of by international marketers. It focuses on WTO measures, with deal with so-called international marketing mix decisions, namely decisions pertaining to 1) entry and international distribution 2) product and service 3) pricing and 4) international communication. Commitments made during the WTO Fourth Ministerial Conference in Doha (9-14 November 2001) that are relevant to issues raised in this paper are accounted for.
TL;DR: In contrast with the steadily rising shares of other regional exporters, Singapore's export shares in the global electronics market have been faltering in recent years, which has given rise to concerns about its export competitiveness.
Abstract: In contrast with the steadily rising shares of other regional exporters, Singapore's export shares in the global electronics market have been faltering in recent years. This has given rise to concerns about its export competitiveness. The drop in Singapore's global ranking can be attributed to shrinking exports of end products and low-end electronics parts, as manufacturers relocate such assembly production out of Singapore to the regional economies. Fortunately, Singapore remains competitive in the export of high-end intermediate electronics components, which are characterized by capability, technology, and automation-intensive processes. While Singapore is progressing in the right direction, the climb up the high-tech value chain needs to be further accelerated in order to maintain a technology gap with regional exporters. Besides accelerating its own industrial upgrading, Singapore needs to actively pursue measures that would help create a more integrated and competitive production platform for ASEAN, as well as to seek opportunities to service the rapidly enlarging consumer market in China. © 2003 Wiley Periodicals, Inc.
TL;DR: In 2003, China's accession to the WTO can be seen as the culmination of not just a 15-year negotiation but also of a process that actually began 150 years ago with the projection of Western imperialist power into the Chinese mainland as mentioned in this paper.
Abstract: China's accession to the WTO can be seen as the culmination of not just a 15-year negotiation but also of a process that actually began 150 years ago with the projection of Western imperialist power into the Chinese mainland. China now appears to have joined the global community on mutually agreeable terms. The commitments China has made are significant and, if implemented, will facilitate continued change in the nation's legal/regulatory structure for economic growth. WTO accession has many implications, both economic and political, for China and the rest of the world; it is important not to forget historical context and current realities in assessing them. © 2003 Wiley Periodicals, Inc.
TL;DR: In this paper, the American culturally driven inclination for short-term results and constant change coupled with a focus on the individual as opposed to the group influencing the way transnational corporate business is conducted is raised via an introduction to cultural determinants as theorized by the underlying research of Hofstede, Tromprenaars, and Hampden-Turrner regarding time orientation as well as the contrasting of American and foreign value systems in respect to change acceptance as driven by the culturally limiting national mind set of the company manager.
Abstract: Is the American culturally driven inclination for short-term results and constant change coupled with a focus on the individual as opposed to the group influencing the way transnational corporate business is conducted? Such an issue is raised via an introduction to cultural determinants as theorized by the underlying research of Hofstede, Tromprenaars, and Hampden-Turrner regarding time orientation as well as the contrasting of American and foreign value systems in respect to change acceptance as driven by the culturally limiting national mind set of the company manager. Using global, publicly traded companies and the pressure on them for quarterly performance attainment as fueled by the Street, financial analysts, the effect of the American culturally driven need to continually show financial progress at abbreviated intervals or provide for some pronounced judicious changes in the interim may have begun to spiral out to managerial decision making around the world. Such phenomenon may begin to upset the historic balance that the polar culturally based applications of time, change, and decision making provided the historic global commercial environment. Such proposed effect could also influence traditional worldwide economic and social development. This concept is raised but not empirically answered, and is offered to stimulate further evaluation and research into the potential conflict in international decision making when opposite mindsets collide. © 2003 Wiley Periodicals, Inc.
TL;DR: Ming-Jer Chen and John B. Stuttard as mentioned in this paper describe strategies, structure, and performance of MNCs in China, including the New Silk Road: Secrets of Business Success in China Today.
Abstract: Ming-Jer Chen. 2001. Inside Chinese Business: A Guide for Managers Worldwide. Boston: Harvard Business School Press. 234 pages.
John B. Stuttard. 2000. The New Silk Road: Secrets of Business Success in China Today. New York: John Wiley & Sons. 144 pages.
Yadong Luo. 2000. Strategy, Structure, and Performance of MNCs in China. Westport, CT: Quorum Books. 302 pages.
Maria Lai-Ling Lam. 2000. Working With Chinese Expatriates in Business Negotiations: Portraits, Issues, and Applications. Westport, CT: Quorum Books. 188 pages.
TL;DR: In this paper, the authors conducted a survey to determine changes in U.S.-based MNC treasury practice resulting from the Eurozone formation and reported the results of this survey with regard to hedging activities, European banking arrangements, and Euro financial market sourcing.
Abstract: Introduction of the Euro has brought dramatic changes to the perceptions and realities of MNC finance. These changes vary considerably based on whether the multinational company has integrated its U.S. and European treasury operations or is U.S. dollar-centric in finance orientation. We conducted a survey to determine changes in U.S.-based MNC treasury practice resulting from the Eurozone formation. This article reports the results of this survey with regard to hedging activities, European banking arrangements, and Euro financial market sourcing. The effects on the two types of MNCs are compared. Implications for international banks are examined. Recent Eurozone bank merger developments are also reviewed, with special focus on M&A developments in both France and Germany. © 2003 Wiley Periodicals, Inc.
TL;DR: In this paper, the implications of the introduction of the single currency in Europe on Mediterranean central bank reserves and foreign external liabilities, trade and capital flow, and exchange rate policies are examined.
Abstract: Executive Summary The Mediterranean peripheral countries cannot afford to be passive viewers of the fundamental changes that are taking place in Europe after the introduction of the Euro. The new developments pose formidable challenges and opportunities. It will be argued that no single group of developing countries will be more affected by these changes than the Mediterranean countries given their geographical proximity to the region and their long historical record of extensive and large economic interactions (trade, finance, and migration). This article examines the implications of the introduction of the single currency in Europe on Mediterranean central bank reserves and foreign external liabilities, trade and capital flow, and exchange rate policies. It is shown that since most Mediterranean trade is with the EU, Mediterranean central banks will be necessitated to hold major portions of their foreign exchange reserves in Euros. Also, a Mediterranean currency peg to the Euro, or to a basket of currencies where the Euro is allocated, will be important in reducing financial and trade transaction costs. It will also be hypothesized that Mediterranean foreign debts will eventually have to be converted to Euros. Finally, parallels between this region and the U.S–Caribbean region will be drawn to reinforce the argument that trade and capital dependence will eventually lead to a pegging of the Mediterranean currencies to the Euro. © 2003 Wiley Periodicals, Inc.
TL;DR: In this paper, the authors identify and assesses synergies between export channels in emerging and mature markets and show that exporters' performance determinants in emerging markets are different from those in mature markets.
Abstract: This study identifies and assesses synergies between export channels in emerging and mature markets. The results indicate that exporters' performance determinants in emerging markets are different from those in mature markets. Exporters transfer funds between export channels. Experienced exporters' channels in fast-growing emerging markets and their channels in mature markets where they have developed product or brand advantages require heavy funding. Other channels will be used as the fund sources to support and control these export channels. © 2003 Wiley Periodicals, Inc.
TL;DR: A comprehensive review of Switzerland's historical development, political structure, economy, investment, and foreign trade environment is presented in this paper, which aims at being a useful source of information for foreign businessmen and investors interested in doing business in Switzerland, one of the most advantageous business locations in Europe.
Abstract: Situated at the crossroads of Europe, Switzerland is an ideal example of a successful multicultural and multilingual society living in a harmonized way. This article provides a comprehensive review of Switzerland's historical development, political structure, economy, investment, and foreign trade environment. It aims at being a useful source of information for foreign businessmen and investors interested in doing business in Switzerland, one of the most advantageous business locations in Europe. © 2003 Wiley Periodicals, Inc.