Showing papers on "Multinational corporation published in 1997"
TL;DR: In this article, the authors define initiative as a key manifestation of corporate entrepreneurship and examine the types of initiative exhibited in a sample of six subsidiaries of multinational corporations, identifying four distinct types of initiatives: global, local, internal, and hybrid.
Abstract: This paper defines initiative as a key manifestation of corporate entrepreneurship, and examines the types of initiative exhibited in a sample of six subsidiaries of multinational corporations. From a detailed analysis of 39 separate initiatives, four distinct types are identified, which we refer to as ‘global,’ ‘local,’ ‘internal’ and ‘global–internal hybrid,’ to correspond to the locus of the market opportunity whence each arose. Two important conclusions are indicated. First, entrepreneurship at the subsidiary level has the potential to enhance local responsiveness, worldwide learning and global integration, a much broader role than previously envisioned. Second, the use of contextual mechanisms to create differentiated subsidiary roles has its limitations because each initiative type is facilitated in different ways. © 1997 by John Wiley & Sons, Ltd.
1,108 citations
TL;DR: In this article, the authors discuss the factors behind the continued growth of foreign direct investment and its wider consequences on home and host economies, and investigate the extent to which technology transfer from foreign-owned firms has affected the rate of technical progress within the German and UK economies.
Abstract: The extent of multinational activity and the share of world trade accounted for by multinational enterprises has risen steadily over the past two decades. This has led to renewed interest within Europe in the impact of multinational enterprises on employment, investment and trade, and the structure of economic growth. In this paper we discuss the factors behind the continued growth of foreign direct investment and its wider consequences on home and host economies. We report evidence on the impact of production relocation on the export performance of a number of OECD economies, and investigate the extent to which technology transfer from foreign-owned firms has affected the rate of technical progress within the German and UK economies. The acquistion of firm-specific knowledge-based assets is found to be an important factor behind the growth of FDI, suggesting that such investments are likely to be an important channel for the diffusion of ideas and technologies.
568 citations
520 citations
TL;DR: In this article, the authors identify several cultural values that likely will affect whether employees within those facilities will resist the self-management-related and team-related aspects of SMWTs.
Abstract: As a result of both global competition and company downsizing, multinational firms increasingly are using self-managing work teams (SMWTs) in their foreign affiliates. In this article we identify several cultural values that likely will affect whether employees within those facilities will resist the self-management-related and team-related aspects of SMWTs. Further, we argue that the success of SMWTs is related to the extent to which organizations effectively manage culture-based resistance to SMWTs. We then conclude with theoretical implications and recommendations for managers implementing teams globally.
437 citations
Posted Content•
TL;DR: In contrast to expectations now common both inside and outside academia regarding the imminent emergence of a truly global economy, this article showed that MNCs continue to diverge fairly systematically in their internal governance and long-term financing structures, in their approaches to research and development (R&D) as well as in the location of core R&D facilities, and in their overseas investment and intra-firm trading strategies.
Abstract: Liberal and critical theorists alike claim that the world political economy is becoming globalized. If they are right, leading corporations should gradually be losing their national characters and converging in their fundamental strategies and operations. Multinational corporations (MNCs) should be the harbingers of deep global integration. In fact, recent evidence shows little blurring or convergence at the cores of firms based in Germany, Japan, or the United States. In contrast to expectations now common both inside and outside academia regarding the imminent emergence of a truly global economy, this article shows that MNCs continue to diverge fairly systematically in their internal governance and long-term financing structures, in their approaches to research and development (R&D) as well as in the location of core R&D facilities, and in their overseas investment and intrafirm trading strategies. Durable national institutions and distinctive ideological traditions still seem to shape and channel crucial corporate decisions. Across the leading states of the three regions now commonly referred to as the "Triad," the foundations of corporate markets are not converging.Markets in this sense are not replacing political leadership and the necessity for negotiated adjustments among states.
376 citations
TL;DR: In this article, the authors argue that language needs to be considered as an important element in managing multinationals because it permeates virtually every aspect of their business activities and that multinationals need to ensure that language does not become a peripheral, or forgotten, issue; rather, it should be viewed in more strategic terms.
349 citations
Posted Content•
TL;DR: The recently-adopted OECD convention outlawing bribery of foreign public officials is welcome evidence of how much progress has been made in the battle against corruption as mentioned in this paper, but the financial crisis in East Asia is an indication of the fact that much remains to be done.
Abstract: The recently-adopted OECD convention outlawing bribery of foreign public officials is welcome evidence of how much progress has been made in the battle against corruption. The financial crisis in East Asia is an indication of how much remains to be done. Corruption is by no means a new issue but it has only recently emerged as a global issue. With the end of the Cold War, the pace and breadth of the trends toward democratization and international economic integration accelerated and expanded globally. Yet corruption could slow or even reverse these trends, potentially threatening economic development and political stability in some countries. * As the global implications of corruption have grown, so has the impetus for international action to combat it. In addition to efforts in the OECD, the Organization of American States, the World Trade Organization, and the United Nations General Assembly, the World Bank and the International Monetary Fund have both begun to emphasize corruption as an impediment to economic development. * This book includes a chapter by the Chairman of the OECD Working Group on Bribery discussing the evolution of the OECD convention and what is needed to make it effective. Other chapters address the causes and consequences of corruption, including the impact on investment and growth and the role of multinational corporations in discouraging bribery. The final chapter summarizes and also discusses some of the other anticorruption initiatives that either have been or should be adopted by governments, multilateral development banks, and other international organizations.
321 citations
TL;DR: In fact, recent evidence shows little blurring or convergence at the cores of firms based in Germany, Japan, or the United States as discussed by the authors, suggesting that these firms are the harbingers of deep global integration.
Abstract: Liberal and critical theorists alike claim that the world political economy is becoming globalized. If they are right, leading corporations should gradually be losing their national characters and converging in their fundamental strategies and operations. Multinational corporations (MNCs) should be the harbingers of deep global integration. In fact, recent evidence shows little blurring or convergence at the cores of firms based in Germany, Japan, or the United States.
297 citations
Posted Content•
TL;DR: This article examined the effect of corruption-induced uncertainty on foreign direct investment and found that the effect is negative statistically significant and quantitatively large, and that an increase in the uncertainty level from that of" Singapore to that of Mexico, at the average level of corruption in the sample raising the tax rate on multinational firms by 32 percentage points.
Abstract: This paper examines the effect of corruption-induced uncertainty on foreign direct" investment. The measure of uncertainty is constructed based on unpublished individual survey" responses on levels of corruption in host countries. The result is striking. The effect is negative statistically significant and quantitatively large. An increase in the uncertainty level from that of" Singapore to that of Mexico, at the average level of corruption in the sample raising the tax rate on multinational firms by 32 percentage points. Hence (uncertainty) effect can and does have first-order importance.
218 citations
TL;DR: The best opportunity for growth is often overseas, even for smaller entrepreneurial firms as mentioned in this paper. However, resource-constrained smaller firms do not have as many available entry strategies as do larger firms.
Abstract: The best opportunity for growth is often overseas, even for smaller entrepreneurial firms. However, resource-constrained smaller firms do not have as many available entry strategies as do larger mu...
218 citations
Posted Content•
TL;DR: In this paper, the exact relationship between foreign multinational corporations and their host economies seems to vary between industries and countries, and most available evidence has to do with multinationals' entry into host countries' industries rather than with their presence -the dynamic aspects of multinationals relationship to their competition in host country markets.
Abstract: Foreign direct investment may promote economic development by helping to improve productivity growth and exports in the multinationals'host countries, the authors conclude, after reviewing the empirical evidence. But the exact relationship between foreign multinational corporations and their host economies seems to vary between industries and countries. Multinational corporations mainly enter industries where barriers to entry and concentration are relatively high, and at first they increase the number of firms in the host country market. In the long run, they may contribute to a more concentrated market, although efficiency may improve, especially if protection does not guarantee an easy life for the multinational affiliate. However, most available evidence has to do with multinationals'entry into host countries'industries rather than with their presence -the dynamic aspects of multinationals'relationship to their competition in host country markets. Most evidence on multinationals'effects has to do with effects in industrial countries, and it is impossible to disregard the risk that the multinationals'entry into developing countries may replace local production and force local firms out of business, rather than force them to become more efficient.
TL;DR: The authors discusses the choice of an appropriate paradigm to consider banks' motivation to enter a new market and their subsequent performance is an important issue in multinational banking and discusses this issue within the context of two competing theories of multinational enterprise and the special theories of banking as applied to the multinational enterprise.
Abstract: The choice of an appropriate paradigm to consider banks' motivation to enter a new market and their subsequent performance is an important issue in multinational banking. This paper discusses this issue within the context of two competing theories of the multinational enterprise and the special theories of banking as applied to the multinational enterprise. The conclusion of this paper is that while it may not be possible to empirically distinguish between the propositions of Eclectic theory and Internalisation theory, Intemalisation theory offers a framework with greater internal consistency for the study of the multinational bank. Further, any empirical studies must be conducted within the framework of the appropriate special theories consistent with internalisation theory. These special theories have developed over time in an unstructured fashion, and the application of internalisation theory provides a cohesive framework within which to analyse these theories.
TL;DR: The authors adapts the authors' earlier work to consider what role multinationals might play in factor markets, and identifies circumstances under which investment liberalization is likely to raise the wage gap in both the skilled-labor abundant and the unskilled-limited country.
Abstract: The observation of an increase in the ratio of skilled to unskilled wages in the high-income countries and in some cases in low/middle-income countries has led to considerable discussion and controversy as to its cause. Virtually none of the analyses have considered a role for multinational investment in explaining the wage-gap phenomenon. This paper adapts the authors’ earlier work to consider what role multinationals might play in factor markets. It identifies circumstances under which investment liberalization is likely to raise the wage gap in both the skilled-labor abundant and the unskilled-labor abundant country.
TL;DR: Technological diversification in the Multinational Corporation : Historical Trends and Future Prospects as mentioned in this paper, is a recent survey of trends and future prospects of the multinational corporations in terms of technology diversification.
TL;DR: In this article, the authors developed and tested a model of a global learning organization structure and market information processing using the purchasing process of a Fortune 500 multinational corporation using the activities and relationships between the domestic and international strategic business units (SBUs) and the buying center of the organization.
TL;DR: The authors examined the value of international operations to the U.S. multinational corporation during a period of exchange rate volatility and uncertainty and found that international operations during the 1980s are associated with decreased firm value, with the greatest decreases occurring when the dollar was strongest.
Abstract: This article examines the value of international operations to the U.S. multinational corporation during a period of exchange rate volatility and uncertainty. Rather than enhancing firm value, international operations during the 1980s are found to be associated with decreased firm value, with the greatest decreases occurring when the dollar was strongest. This evidence is consistent with recent models that predict a connection between sunk costs and hysteretic pricing behavior in foreign markets. Copyright 1997 by University of Chicago Press.
TL;DR: In this paper, an integrated systems lifecycle approach is proposed as a long term way of strengthening evaluation practice, which incorporates a cultural change in evaluation from "control through numbers" to a focus on quality improvement.
Abstract: Despite the massive investments in Information Technology (IT) in the developed economies, the IT impact on productivity and business performance continues to be questioned. The paper critically reviews this ‘IT productivity paradox’ debate. It suggests that important elements in the uncertainty about the IT payoff relate to deficiencies in measurement at the macroeconomic level, but also to weaknesses in organisational evaluation practice. The paper reports evidence from a 1996 UK survey pointing to such weaknesses. Focusing at the more meaningful organisational level, an integrated systems lifecycle approach is put forward as a long term way of strengthening evaluation practice. This incorporates a cultural change in evaluation from ‘control through numbers’ to a focus on quality improvement. The approach is compared against 1995–96 research findings in a multinational insurance company, where senior managers in a newly created business division consciously sought related improvements in evaluation practice, and IT productivity.
TL;DR: In this article, the determinants of the impact of foreign multinational enterprises on the technological development of domestic firms are analyzed and the consequences of the foreign presence change according to market and technological conditions.
Abstract: This paper analyses the determinants of the impact of foreign multinational enterprises on the technological development of domestic firms. It argues that the consequences of the foreign presence change according to market and technological conditions. An evolutionary model of technological competition between foreign and domestic firms is developed which is able to generate both vicious and virtuous circles of development in locations affected by foreign MNE activities. Theoretical analysis is tested against the empirical evidence for the UK economy (1983–1989).
Book•
01 Jan 1997
TL;DR: The Transplanted Executive as mentioned in this paper provides a comprehensive resource for managers of any nationality striving to understand the diversity of workplace values and traditions, and how they can be used to maximize employee efficiency, morale, and the bottom line.
Abstract: With the passage of NAFTA and GATT, the steady integration of the European Community, and the emergence of promising new markets in Eastern Europe and the Pacific Rim, businesses around the world are globalizing their operations with unprecedented speed. But as executives working in foreign countries have discovered, organizational cultures can differ dramatically from country to country, and management practices effective back home can fail miserably abroad. The Transplanted Executive provides a comprehensive resource for managers of any nationality striving to understand the diversity of workplace values and traditions--and how they can be used to maximize employee efficiency, morale, and the bottom line. Offering sensible solutions to everyday problems, this informative volume shows how employees with different cultural, religious, and ethnic backgrounds respond to specific managerial techniques. The authors demonstrate, for example, why effective incentive systems in Japan might decrease productivity in United States, and why successful efforts to create team-based cooperation in Russia could alienate rather than motivate workers in England. Each chapter focuses on a different management problem--effective communication, motivation of workers, turning groups into teams, leadership skills, and quality management production--and following each chapter are quick reference charts that neatly summarize the text. The authors also include a table which provides cultural profiles of nearly 50 countries from major business centers around the world.
Now more than ever, multinational managers need to be in touch with the range of cultural issues that can affect their overseas operations. With The Transplanted Executive in hand, managers the world over will have a user-friendly guide to understanding and mastering the subject.
TL;DR: In this article, the authors define a "flagship firm" as a multinational enterprise which has taken on the strategic leadership of a business network consisting of four other partners: key suppliers, key customers, selected competitors and the non-business infrastructure.
Journal Article•
TL;DR: The authors examined nationality effects in global strategy in the context of a causal model of globalization, including industry globalization drivers, organization structure, management processes, human resources, culture, business and company characteristics, and nationality.
Abstract: ■ This paper examines nationality effects in global strategy in the context of a causal model of globalization. This model includes industry globalization drivers, organization structure, management processes, human resources, culture, business and company characteristics, and nationality. ■ The model is tested on data collected from 63 worldwide businesses in very large American, European and Japanese MNCs.
TL;DR: The authors found that the performance advantage of foreign subsidiaries attributable to firm-specific advantages is reduced when one controls for differences in agency costs due to ownership concentration differences between these subsidiaries and domestic firms.
Book•
01 Jan 1997
TL;DR: The author examines the effect of existing foreign regulation - price controls, rate of return regulations, and industrial policies - on U.S. and other multinational producers of innovative drugs and explores the growing threat to global revenues from the regulatory use of international price comparisons and the increasing threat from parallel trade.
Abstract: Increasing global regulation of drug prices and expenditures already affects the efficiency of pharmaceutical R&D and of health care delivery, with important implications for patient care now and in the future. The author examines the effect of existing foreign regulation - price controls, rate-of-return regulations, and industrial policies - on U.S. and other multinational producers of innovative drugs. She explores the growing threat to global revenues from the regulatory use of international price comparisons and the increasing threat from parallel trade.
01 Jan 1997
TL;DR: In this article, the second generation multinational operations are discussed. But the authors focus on the second-generation multinational operations and do not consider the third-generation operations, which is different from ours.
Abstract: (1992). Second generation multinational operations. The Washington Quarterly: Vol. 15, No. 3, pp. 113-131.
TL;DR: In this paper, the authors investigated specific questions relating to intra-cultural differences in Hong Kong and found that a statistically significant correlation exists between age and ethical beliefs, with older employees less likely to express agreement to an unethical action than younger employees.
Abstract: In an effort to build on the current knowledge of ethical behaviour in Asia this paper proposes to replicate existing ethical research and to investigate specific questions relating to intra-cultural differences in Hong Kong. Four major conclusions were derived from this descriptive empirical study. A statistically significant correlation exists between age and ethical beliefs, with older employees less likely to express agreement to an unethical action than younger employees. In contrast to many previous studies no statistically significant differences in ethical beliefs were found in relation to gender, level in the organisation, company size, and whether the respondent worked in a multinational or local company. Significant differences in responses to ethical dilemmas were identified between local and expatriate personnel with expatriate respondents indicating a lower level of agreement to unethical actions. For local respondents, of Hong Kong origin, there was no significant correlation between level of education, religiosity, years of business experience, functional origin and their ethical responses.
TL;DR: The concept of moral rights, those transcending legal or political rights, drives us to review four international codes of conduct and to attempt to develop one international uniform code that might be applicable to any business, in any country or culture.
Abstract: The international economy is changing at a rapid rate. The alteration and reduction of both geographical and political borders, coupled with the growing interdependence of socially, politically, economically, and legally diverse countries, have caused multinational corporate entities to revise various policies. These revisions include revisions in marketing strategies, strategic alliances, product and service strategies and, perhaps most importantly as it affects all strategies, a MNC's approach to ethical systems. The truly global company must come to grips with the legal and moral atmosphere in which it operates. The concept of moral rights, those transcending legal or political rights, drives us to review four international codes of conduct and to attempt to develop one international uniform code that might be applicable to any business, in any country or culture.
Book•
07 Nov 1997
TL;DR: In this article, the authors present a case study of capability building in Biotechnology in developing countries, focusing on the external environment for building technology capability and the Uruguay Round: Changed International Context for Development of Local Capability in Developing Countries.
Abstract: Preface. List of Tables. 1. Introduction and Overview Part 1: External Environment for Building Technological Capability 2. Globalization, New Technologies and the Uruguay Round: Changed International Context for Development of Local Capability in Developing Countries 3. New Technologies and Developing Countries: A Case Study of Capability Building in Biotechnology Part 2: Technology and Market Structure 4. Firm Size and Technological Activity 5. Market Structure, Opportunities, Patent and Innovations 6. Technological Activities, Market Structure and Firm's Performance Part 3: Technology, Trade and Multinational Enterprises 7. Technology, Market Structure and Multinational Enterprises 8. Technology, Multinationals and International Trade of Developing Countries 9. Technology Imports and Domestic Technological Capability in the Host Countries References.
TL;DR: In this paper, a conceptual framework was developed to address multinational companies' IS global policy formulation and several implications for IS management issues in Arab Gulf countries (AGC), and the uniqueness of the business and IS problems confronting MNCs in the AGC were illustrated.
TL;DR: Do multinational companies use developing countries as dumping grounds? Or are they becoming greener and more responsible in environmental matters? as discussed by the authors investigates whether multinational companies are becoming "greener" and "more responsible".
Abstract: Do multinational companies use developing countries as dumping grounds? Or, are they becoming ‘greener’ and more responsible in environmental matters?