Showing papers on "Multinational corporation published in 1992"

A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management

Abstract: This article assesses the extent to which the results of Bartlett and Ghoshal's [1989] work can be incorporated in what has now become one of the core explanations of multinational strategic management, i.e., the transaction cost-based theory of international production. We demonstrate that the transaction cost approach fully incorporates the empirical findings of Bartlett and Ghoshal's work. To do so requires that we make a new distinction between location-bound and non-location-bound firm-specific advantages. In addition, three possible uses of country-specific advantages by multinational enterprises need to be identified. While the transnational solution, as proposed by Bartlett and Ghoshal, is not itself a new theory of multinational strategic management, it is compatible with the transaction cost-based model of multinational strategic management.

What attracts foreign multinational corporations? evidence from branch plant location in the united states

Abstract: . The location decisions of foreign multinational corporations (FMNCs) are analyzed using a conditional logit model with states as the choice set. We consider the establishment of new manufacturing plants and separately analyze the site selection of all MNCs, Japanese MNCs, and European MNCs. The results indicate that access to markets, labor market conditions, state promotional efforts to attract foreign investment, and state and local personal taxes are significant fadors in the location decision. The decision determinants for Japanese and European MNCs are found to be different.

Implementing Global Strategy: Characteristics of Global Subsidiary Mandates

Abstract: Implementing a global strategy requires coordinating subsidiary activities across country locations. The assumption often made is that such coordination must be managed at headquarters. However, an alternate approach is decentralized-centralized responsibilities in which different subsidiaries within the multinational are given worldwide mandates to manage specific products or products lines. This study identifies subsidiary characteristics that are associated with receiving a global mandate by examining foreign subsidiaries located in France, Germany, Japan, U.K., U.S., and Canada.

Transnational Management:Text, Cases, and Readings In Cross Border Management

Abstract: Part 1 The Strategic Imperatives Chapter 1 Expanding Abroad: Motivations, Means, and Mentalities Case 1-1 Lincoln Electric Case 1-2 Jollibee Foods Corporation (A): International Expansion Case 1-3 Acer, Inc.: Taiwan's Rampaging Dragon Case 1-4 Research in Motion: Managing Explosive Growth Reading 1-1 The Tortuous Evolution of the Multinational Corporation Reading 1-2 Distance Still Matters: The Hard Reality of Global Expansion Reading 1-3 When You Shouldn't Go Global Chapter 2 Understanding the International Context: Responding to Conflicting Environmental Forces Case 2-1 Global Wine Wars 2009: New World versus Old Case 2-2 The Globalization of CEMEX Case 2-3 Mattel and the Toy Recalls (A) Reading 2-1 Culture and Organization Reading 2-2 Clusters and the New Economics of Competition Chapter 3 Developing Transnational Strategies: Building Layers of Competitive Advantage Case 3-1 Marketing the "$100 Laptop" (A) Case 3-2 Global Branding of Stella Artois Case 3-3 GE's Imagination Breakthrough: The Evo Project Reading 3-1 Managing Differences: The Central Challenge of Global Strategy Reading 3-2 How Local Companies Keep Multinationals at Bay Reading 3-3 Regional Strategies for Global Leadership Part 2: The Organizational Challenge Chapter 4 Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility Case 4-1 Philips versus Matsushita: Competing Strategic and Organizational Choices Case 4-2 ECCO A/S - Global Value Chain Management Case 4-3 World Vision International's AIDS Initiative: Challenging a Global Partnership Reading 4-1 Managing Multicultural Teams Reading 4-2 Managing Executive Attention in the Global Company Reading 4-3 Matrix Management: Not a Structure, a Frame of Mind Chapter 5 Creating Worldwide Innovation and Learning: Exploiting Cross Border Knowledge Management Case 5-1 Siemens AG: Global Development Strategy Case 5-2 P&G Japan: The SK-II Globalization Project Case 5-3 McKinsey & Company: Managing Knowledge and Learning Reading 5-1 Building Effective R&D Capabilities Abroad Reading 5-2 Connect and Develop: Inside Procter & Gamble's New Model for Innovation Reading 5-3 Finding, Forming, and Performing: Creating Networks for Discontinuous Innovation Chapter 6 Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries Case 6-1 Nora-Sakari: A Proposed JV in Malaysia (Revised) Case 6-2 Mahindra and Mahindra Ltd.--Farm Equipment Sector: Acquisition of Jiangling Tractor Company Case 6-3 Eli Lilly in India: Rethinking the Joint Venture Strategy Reading 6-1 The Design and Management of International Joint Ventures Reading 6-2 Collaborate with Your Competitors - and Win Part 3: The Managerial Implications Chapter 7 Implementing the Strategy: Building Multidimensional Capabilities Case 7-1 ING Insurance in Asia/Pacific Case 7-2 BRL Hardy: Globalizing an Australian Wine Company Case 7-3 Silvio Napoli at Schindler India (A) Reading 7-1 Local Memoirs of a Global Manager Reading 7-2 Tap Your Subsidiaries for Global Reach Chapter 8 The Future of the Transnational: An Evolving Global Role Case 8-1 Hitting the Wall: Nike and International Labor Practices Case 8-2 IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor(A) Case 8-3 Killer Coke: Campaign Against Coca-Cola Case 8-4 Genzyme's CSR Dilemma: How to Play its HAND Reading 8-1 Values in Tension: Ethics Away From Home Reading 8-2 Serving the World's Poor, Profitably

The Environment and Internal Organization of Multinational Enterprises

Abstract: Multiple sources of external authority and multiple denominations of value are two distinguishing aspects of the environment faced by multinational enterprises (MNEs). After defining the MNE as an organizational form, we examine the research implications of these two environmental influences on four aspects of MNE internal organization: modes of entry abroad, configuration of activities, coordination and control, and competitive strategy. We present general propositions to guide future research and argue that multiple sources of authority and multiple denominations of value require cross-disciplinary research efforts in order to fully understand the MNE as an organizational form.

Locational determinants of foreign R&D in Swedish multinationals

Abstract: Drawing on detailed data on some 150 foreign R&D establishments belonging to Sweden's 20 largest manufacturing enterprises, this paper tests a number of hypotheses as to the determinants of different types of such units. The relative importance of market-oriented R&D, i.e. R&D primarily dedicated to adaptation of products to local market characteristics, was seen to be related to the average age of subsidiaries and to be more common in companies with geographically concentrated manufacturing. The relative size of foreign research was associated with companies' R&D intensity, whereas the relative importance of overseas R&D with primary mission to support local production was strongly related to the number of foreign acquisitions. By dissaggregating foreign R&D by types, it was possible to ascertain the effects of a number of organizational variables. Thus the presence of global product divisions was shown to affect negatively the establishment of ‘production support’ units. The existence of product divisions headquartered abroad — taken as an indication of a ‘geocentric’ type of organization — was strongly related to the occurrence of ‘multi-motive’ R&D units, i.e. overseas laboratories that — similar to home country based R&D — perform a wide range of qualified R&D tasks. For the rather large proportion of foreign R&D undertaken in ‘politically motivated’ units, no statistically significant relationships could be established. Here, further research is needed. References

Global or Stateless Corporations are National Firms with International Operations

Abstract: Are "multinational," "transnational," or "global" corporations truly stateless? By applying a number of criteria—geographical spread and scope of operations, ownership, control, people, legal nationality, and tax domicile—one must conclude that they are national firms with international operations. The home nation remains the primary source of a corporation's international competitive advantage, so that weakness at home is unlikely to be compensated by overseas operations. Moreover, it is often simply not feasible for a company as a whole to shift its home base (as distinct from shifting its headquarters). The firm needs its home nation just as the nation needs its home-based firms.

The Internationalization of the Firm: A Reader

Abstract: Part 1 Antecedents: international investment and international trade in the product life cycle, R. Bernon the internationalization of the firm fair Swedish cases, J. Johanson and F. Wiedersheim-Paul the internationalization process of firm - a model of knowledge development and increasing foreign market commitments, J. Johanson and F. Wiedersheim-Paul a theory of international differences among exporting firms based on degree of internationalization, P.J. Buckley and M. Casson outward foreign licensing by Australian companies, L. Welch foreign direct investment by small and medium-sized enterprises - the theoretical background, P.J. Buckley are entry strategies for foreign markets changing? the case of Swedish investment in Japan as a means of ventures and global strategies, G. Hedlund and A. Kverneland. Part 2 The internationalization process: internationalization - evolution of a concept, L. Welch and R. Luostarinen a challenge to the stages theory of the internationalization process, P. Turnbull organizing the multinational firm - can the Americans learn from the Europeans?, J.M. Stopford towards a new approach of studying the internationalization process of firms, J. Strandskoy foreign direct investment as a sequential process, B. Kogut. Part 3 Organizing the multinational firm: an approach to strategic control in MNCs, C.K. Prahalad and Y. Doz multinational structural change - evolution versus reorganization, C. Bartlett emergence of new structures in Swedish multinationals, P.N. Ghauri foreign market servicing by multinationals - an integrated approach, P.J. Buckley et al. Part 4 Scandinavian applications: phsychic distance and buyer-seller interaction, L. Hallaeen and F. Wiedersheim-Paul internationalization in industrial systems - a network approach, J. Johanson and L.G. Matsson joint venture relationship between Swedish firms and developing countries - a longitudinal study, S.A. Hyder and P.N. Ghauri internationalization of management - dominance and distance, M. Forsgren and U. Holm international strategy - a study of Norwegian companies, P. Joynt.

The Europeanization of manufacturing and the decentralization of bargaining: multinational management strategies in the European automobile industry

Abstract: In their search for productivity and quality improvements, multinationals increasingly make use of their integrated operations in order to win agreement in local bargaining, on issues such as machine running time, the shift system and flexible working practices. In this situation, local bargaining between the industrial relations actors takes on a strategic role. A common multinational strategy is to link success in local bargaining to investment policy. National differences in industrial relations systems only seem to affect the mode of local negotiation, rather than the trend towards decentralization. Convergent forces in the shape of the globalization of markets, European legislation and common product standards, as well as the easing of cross-border shipments of components or half-finished products, have led to the emergence of remarkably similar operational requirements in management policies in various countries. This new dimension of multinationals' corporate strategy has not yet been sufficiently ...

An Issue-Area Approach to the Analysis of MNE-Government Relations

Abstract: This article presents an issue-area approach to the analysis of relations between multinational enterprises and governments. The concept of issue-areas is drawn from a body of political science literature that has been neglected in the literature of international business. The central theme of the analysis is that business-government relations vary systematically across issue-areas in their interactions and outcomes. An issue-area typology from the political science literature is applied to MNE-government relations concerning inbound foreign direct investment in the United States. The article adopts a heuristic approach, as is appropriate in this first stage in the development of an issue-area theory of MNE-government relations.

Technology management and international business: Internationalization of R&D and technology

Abstract: List of contributors preface list of abbreviations. Part 1: Introduction and overview. Part 2: Multinational enterprises and the globalization of innovatory capacity. Part 3: Large firms in the production of the world's technology - an important case of "non-globalization". Part 4: The internationalization of technological activity and its implications for competitiveness. Part 5: Locational determinants of foreign R&D in Swedish multinationals. Part 6: Business culture and international technology - research manager's perceptions of recent changes in corporate R&D. Part 7: Internationalization of research and development among the world's leading enterprises - survey analysis of organization and motivation. Part 8: Management of international R&D operations. Part 9: Internationalization and diversification of multi-technology corporations. Part 10: International collaborative ventures and U.S. firms' R&D strategies. Part 11: Summary and implications.

Host Country Competition and Technology Transfer by Multinationals

Abstract: This paper examines whether rivalry in host country markets may force multinational films to increase the technology transfer to their foreign affiliates. Such technology flows should be interesting from the perspective of the host country and its firms, since they would increase the potential for "spillovers". Using detailed (unpublished) industry data from Mexican manufacturing industry we find that indicators for local competition are positively related to the technology imports of foreign owned affiliates. The effects appear to be strong in consumer goods industries, which suggest that foreign multinationals are especially sensitive to the local market environment when barriers to entry in the form of complex technology or high capital requirements are relatively low.

Multinational Enterprises in the Global Economy

Abstract: The international trade and investment linkages that have evolved since World War II have been importantly influenced by, and have in turn greatly influenced, the growth of multinational enterprises (MNEs). We use the term enterprise rather than any more restrictive term, such as corporation, to refer to organizations engaged in business activities such as production, service, and sales, regardless of their legal form or type of ownership. In particular, both investor-owned entities and state-owned entities are included, along with various hybrid combinations. The appearance and growth of hybrids-both private-government partnerships and multinational joint ventures and strategic alliances—is a particularly significant feature of the contemporary international business environment. We follow Dunning in defining a multinational enterprise as one that “owns and controls income-generating assets in more than one country” (Dunning, ed., 1974, p. 13), or more recently as “a coordinator of value added in two or more countries” (Dunning, 1991, p. 3; see also Dunning, 1979). More elaborate terminological distinctions among such enterprises, such as those suggested by Porter (1986, 1990), Bartlett and Ghoshal (1989), and others (see Hoogvelt, 1987, for a comprehensive compilation) are useful for some purposes, and are introduced as relevant below.

Competition by Effective Management of Cultural Diversity

Abstract: Many of the multinational construction firms working in developing countries and in the Middle East in particular have been facing serious problems managing and carrying out their assignments. Many project managers have returned home from their Middle East assignments with strange stories about sociocultural mishaps that had resulted from misinterpretations, frustrations, and conflicts. For example, project managers experience a cultural shock when appointments are not met, a delay of two hours is not unusual, workers stop work twice a day for prayers (religion has influence in all aspects of life) and intertribal conflicts lead to intergroup conflicts on the work site. These problems have most often resulted not only in wastage of valuable resources but also in delay in completion of the projects. The decade of the 1970s was a booming period for the construction business in the Middle Eastern oil-rich countries, and it created a lucrative market for multinational construction firms, including firms based in Sweden. This was due to the huge oil revenues, the massive and ambitious investment programs in infrastructure, and the lack of local qualified constructors. However, decline in oil revenues turned the propitious into tough competition. As a result of price competition, shortage of a local labor force, and the high cost of Swedish labor, in some countries the construction firms hired labor from Thailand and Pakistan that was several times cheaper than that from Sweden. Furthermore, the consulting engineers came from different countries such as Japan and Britain. Such cultural differences appeared as an important issue in all aspects of project management - from the tendering and negotiation phase to construction operations. The question was, then, how to manage such culturally diversified groups effectively.

The ethnocentric staffing policy in multinational corporations a self-fulfilling prophecy

Abstract: (1992). The ethnocentric staffing policy in multinational corporations a self-fulfilling prophecy. The International Journal of Human Resource Management: Vol. 3, No. 3, pp. 451-472.

Performance and Interaction Routines in Multinational Corporation

Abstract: Research on multinational corporations (MNCs) has neglected routines despite their importance for the process of coordination, and their prominence in organization theory. This paper focuses on three aspects of routinization in MNCs. First, the transmission of routines across cultural boundaries in considered. Second, the focus moves to routine interactions between performance teams in MNCs. Third, I discuss how such routines contribute to the structuring of complex international systems. The conclusion suggests that the MNC may have to recognize that every replica of an existing facility is also an experimental test of taken-for-granted practices.

Prosperity Versus Planning: How Government Stifles Economic Growth

Abstract: This book argues that the nations of the Western World are far more productive and wealthy than other nations because of their market-oriented economic institutions. It challenges conventional wisdom by arguing that foreign aid is largely harmful to Third World people and that multinational corporations are largely beneficial. The book concludes with a discussion of the necessary underpinnings of economic development - secure private property rights, purpose-independent law, and free markets.

Moral ethics v. tax ethics: The case of transfer pricing among multinational corporations

Abstract: In recent years there has been an increased awareness with regards to ethics in business. More specifically, the abundance of well-publicized examples of cheating, greed, and hypocrisy has created some alarm about the general state of personal ethics (Josephson, 1988). Recent examples include the Oliver North, Ivan Boesky, and Jimmy Swaggart cases. The tax practitioner probably has little direct concern for matters of misconduct and ethical improprieties as mentioned above. Adherence to a code of conduct appears to circumvent the ethical conflict typically found in the business environment. The tax practitioner's ultimate goal is tax minimization for clients. This goal has the blessings of the courts and the writers of tax law. The present day dynamic global economic system includes organizations which have extensive international activity. In an effort to enhance the performance of these organizations, there is typically decentralization of operations. When decentralization exists it is necessary to evaluate the decentralized units. Profit centers are commonly used for this purpose. With profit centers comes the need for transfer pricing between profit centers. The transfer price should be determined in some objective fashion. However, tax minimization often is the driving force in the transfer price decision. This paper examines the compatibility of tax minimization goals, following a code of professional conduct, with moral ethics, using the transfer pricing problem in a multinational environment. A case that presents a common scenario for international firms is used as a vehicle to discuss the underlying tax and ethical ramifications.

National Organizing Principles of Work and the Erstwhile Dominance of the American Multinational Corporation

Abstract: Did American development of the largest corporations in the world drive its dominance of world markets in the first three-quarters of this century? The evolution of the large diversified firm and the internationalization of the firm across national borders clearly rank as two of the most important economic developments in the twentieth century. To many, these two developments are linked. In the influential and seminal works of Chandler, the modern corporation arose to exploit fully the new technologies of transport and communication. In his most recent study Scale and Scope: The Dynamics of Industrial Capitalism (1990), Chandler develops the thesis that entrepreneurs gave way to the professional management of firms which succeeded in building, as first movers, three interrelated sets of investments: production, distribution, and management to achieve advantages of scale, scope, or both.

Multinational Enterprises in Less Developed Countries: Cultural and Economic Interactions

Abstract: This chapter analyses the operations of multinational enterprises (MNEs) in less developed countries (LDCs) in terms of the interplay between two types of culture. The MNE, it is claimed, personifies the highly entrepreneurial culture of the source country, while the LDC personifies the less entrepreneurial culture of the typical social group in the host country. This view places MNE-LDC relations in an appropriate historical perspective. It is the entrepreneurial culture of the source country which explains why in the past that country had the economic dynamism to become a developed country (DC). Conversely, the limited entrepreneurial culture of the host country explains why it has been so economically static that it has remained an LDC. The current problems perceived by MNEs in operating in certain LDCs — and also the problems perceived by these LDCs with the operation of foreign MNEs — reflect the difficulties of attempting to bridge this cultural gap.

Internationalization, Internalization, or a New Theory for Small, Low‐technology Multinational Enterprise?

Abstract: Results of this study confirms the contention that the theory of internalization is also applicable to small, low‐technology MNEs. But modifications are suggested when applying to small export oriented multinationals. The development of these firms relies more on soft technology than hard technology. Cultural affinity and geographical proximity are the most important location factors for foreign direct investment.

International joint ventures: Theoretical considerations

Abstract: This paper constructs models to investigate the rationale for a multinational corporation to enter into a joint venture to serve a host market. In particular, the model examines the impact of profit sharing, cost reductions, risk reductions, and competition reductions on the profits of international joint ventures. The results may explain the ‘recent’ popularity of international joint ventures. The models show that (1) a joint venture is the dominant entry strategy when there is a formidable local competitor and the risks of operation are high, (2) a wholly owned subsidiary is preferred if a multinational corporation has a significant cost advantage, (3) a joint venture is preferred to a wholly owned subsidiary if significant cost reductions can be achieved through combining the strengths of a multinational corporation and a local firm, and (4) multiple licensing is preferred if the number of local firms is large.

International Business: Theory and Practice

Abstract: PART I. Scope of International Business and the Multinational Corporation 1. An Introduction to International Business and Multinational Corporations 2. The Nature of International Business PART II. Institutional Framework and Economic Theories 3. Theories of Trade and Economic Development 4. International Monetary System and Balance of Payments 5. Foreign Exchange Markets 6. Supranational Organizations and International Business PART III. Environmental Constraints in International Business 7. Analyzing National Economies 8. International Law 9. Sociocultural Factors 10. Foreign Investment: Researching Risk PART IV. Functional Operations in International Business 11. International Marketing 12. International Finance 13. International Accounting 14. International Taxation 15. International Staffing and Labor Issues 16. Managing Operations and Technology PART V. Social and Ethical Issues and the Future of International Business 17. Ethical Questions: Multinationals and Earth's Environment 18. Future Issues in International Business Case Studies Case Study 1. Michelin and the Global Tire Industry in 2004 Case Study 2. The European Non-Life Insurance Industry and AXA in 2001 Case Study 3. The Battle of the Smart Cards in The Netherlands in 2002 Case Study 4. Bang and Olufsen and the Electronics Entertainment Industry in 2003 Case Study 5. ABX Case Study 6. ARCELOR and the Global Steel Industry.

Budget Effectiveness in Multinational Corporations: An Empirical Test of the Use of Budget Controls

Abstract: Budget Effectiveness in Multinational Corporations: An Empirical Test of the Use of Budget Controls