Multinational corporations as institutional entrepreneurs: the dynamic interplay between automobile firms and the Turkish vocational education and training system

This article analyses the two-way relationship between multinational companies (MNCs) and Turkey's vocational education and training system through case studies of Japanese and German MNCs in the automotive industry. Drawing on semistructured interviews, it addresses the initiatives the MNCs have taken to guarantee skilled employees and their interaction with the Turkish vocational education and training system. The analysis shows how the MNCs have been ‘institutional entrepreneurs’ by introducing new practices. This was possible as the host environment has been open to change but also a requirement where strong industrial relations systems constituted an essential but missing home country institution.     

Worlds colliding: the translation of modern management practices within a UK based subsidiary of a Korean-owned MNC

This paper explores the factors that served to dislodge an espoused strategy of quality management with ‘soft’ HRM within a British subsidiary of a Korean owned multinational company. Accounts from British and Korean managers revealed competing sets of tensions at three levels: external organizational, intra-organizational, and internal workplace. The case is important for a number of reasons. First, research on UK based subsidiaries tends to have focused upon American and Japanese owned companies, with less evidence from MNCs from later industrialized economies. Second, evidence suggests that MNCs from Korea, Taiwan, and Singapore have been experimenting with Western influenced high-performance work systems – but there is less evidence about how these are actually translated into the workplace. Third, there is a growing literature that suggests that the transfer of management practices in MNCs can be partly understood as a ‘negotiated process’, and disagreements may emerge between organisational actors in respect of the meaning and function of such practices. This article offers further support for this contention and offers insights into how these processes affected day-to-day management of the workplace and undermined the espoused strategy.     

Creating social capital in MNCs: the international human resource management challenge

Social capital has assumed a critical role in the successful implementation of global strategy for multinational companies (MNCs). The article focuses on the ways in which the international human resource management (IHRM) system and those responsible for it influence the creation and utilisation of social capital in MNCs. It examines the challenges posed to IHRM by the wide diversity of definitions and manifestations of social capital found in the multiple cultural contexts of the global business environment and provides a framework on how to approach the cultural influences on the definitions and behavioural expressions of social capital. It also critically assesses the recommendations that have been made regarding developing social capital in MNCs, the competencies most critical to the ability to develop social capital in multiple cultural settings, and provides a set of recommendations for future research in this area.     

Reconciling traditional Chinese management with high‐tech Taiwan

The traditional view of management culture among the overseas Chinese is that of an autocratic, paternalistic and centralised organisation with low levels of trust of ‘outside’ professional managers and employees. By contrast, the organisational culture associated with successful innovation and/or high technology is that of a decentralised organisation with high levels of employee autonomy. Existing research indicates that the overseas Chinese have become successful by sticking to the business sectors compatible with their preferred management culture, and that this holds true for Taiwan. What, then, explains the Taiwanese success in high‐technology ventures? This article offers initial evidence that management culture in Taiwan is adapting in order to enable industrial development in new areas. In‐depth interviews with 20 Taiwanese companies indicated that the change is being led by the high‐technology businesses. However, while many of these business culture changes are in a direction towards the organisational culture associated with high‐technology companies, it is also clear that a strong Chinese influence remains.     

A different perspective of expatriate management

Based on a total of 243 papers and theses published in Taiwan and the West, this study provides a different perspective on expatriation management. The investigation includes selection criteria, staffing, training, the female expatriate, the expatriate spouse, and international adjustment. Research reveals that there are similar core concerns, such as an expatriate's professional knowledge, personality, adaptability, and international adjustment. Context-specific concerns also emerge. Taiwanese companies care more about expatriates' personal skills and willpower compared to the West, where companies care more about an expatriate's past performance, adaptability, and spousal adjustment. As more and more resource conscious SMEs are moving to compete in the international arena, attending to their international management needs becomes a pressing issue. This study provides the form, as well as the essence of Taiwanese expatriation management, especially with FDIs based in Taiwan playing a crucial role in the recent economic development of Asia. Taiwan's past successful international expansion certified the value of its expatriation management, particularly under severe resource constraints. The findings of this study may have policy and practical implications for relevant parties and emerging economies.     

Performance and reward practices in foreign multinationals in the UK

This article examines variability in pay and performance management systems (PPMS) across foreign multinational companies (MNCs) in the UK, using a representative survey. It examines factors shaping PPMS for two groups, managers and the largest occupational group (LOG). It finds that US MNCs tend to have more PPMS practices in combination than do non‐US firms, but that for individual items nationality has relatively low influence, particularly for LOG. Other key factors in PPMS vary by employee group: for managers, international HR structural mechanisms for networking, organisational learning and the transmission of a global HR philosophy are important. For LOG, collective bargaining coverage is crucial. The article discusses the implications of the findings for ‘contingency’ approaches to HR ‘architecture’.     

The impact on the cultural diversity to employees' job satisfaction between mainland China and Taiwan: a comparison of Taiwanese invested companies

This study explores how the Chinese values (Integrations, Confucian Work Dynamism, Human-heartedness and Moral Discipline) impact employees' satisfaction (ES). Employees who work in mainland China for companies whose parent companies are based in Taiwan were surveyed. The results can be summarized as the following: ‘Integration’, ‘Confucian Work Dynamism’ and ‘Human-heartedness’ are significantly different between Taiwanese and Chinese employees, while ‘Moral discipline’ is not; Taiwanese employees have higher ES than Chinese employees; Taiwanese employees view ‘career planning’ is the most important, while Chinese employees think ‘management system’ is most important; For Taiwanese employees, ‘Salary and benefit’, ‘Working load’ and ‘Management system’ have effects on ES; Age and Education have effects on Chinese employees.     

Related-party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan

We explore the association between related-party transactions and the efficiency of Taiwanese electronics companies following the adoption of International Financial Reporting Standards (IFRS) for the period 2010–2018. Tests of differences in mean showed that the efficiency and related-party transactions of the sample companies were significantly lower in the post-IFRS era. Regression results indicated that related-party transactions have significantly positive effects on efficiency; however, this positive association turned out to be smaller following the adoption of IFRS in Taiwan. Overall, this study suggests that changing accounting policy and rules can significantly affect related-party transactions in companies, and ultimately corporate performance.     

Learning transfer in multinational companies: explaining inter-organisation variation

This article addresses the extent to which multinational companies (MNCs) in Ireland deploy practices aimed at the transfer of learning in their operations and the factors explaining inter-organisation variation in so doing. Using data from 260 MNCs, we find that comparatively large numbers of firms deploy practices to transfer learning in their Irish operations. Most notably, we find that almost half of all MNCs have a formal policy on organisational learning, while more than six in every ten MNCs in Ireland utilise three or more learning transfer mechanisms. In investigating inter-organisation variation with respect to these, we test a number of hypotheses involving nationality, sectoral, MNC (e.g. organisation structure) and HR factors. Our results show that the presence of international HR structures is a significant factor in explaining learning transfer in MNCs. We also find support that employment size, sector and integration between the MNC's global operations are useful variables in explaining variation in the deployment of practices on learning transfer in MNCs.     

跨国公司对外直接投资机会模糊综合评价研究

本文综合考虑公司实力和目标国区位优势,设计评价跨国公司对外直接投资机会的指标体系。采用二级模糊评价的方法,将该指标体系量化。分别针对不同的目标国进行评价,为确定最佳投资机会提供决策参考。     

Tiered expatriation: A social relations approach to staffing multinationals

This article applies a social relations discourse to examine the use of expatriates in Chinese multinational companies (MNCs). Expatriates are analyzed based on two sets of social relations: the social functions of expatriates (which include the global function of capital and the collective function of labor) and the pathways of expatriation (which include intra‐ and interfirm transfers). In particular, the framework incorporates the collective function of labor into the analysis of expatriation, which has received limited attention in the existing international HRM literature. Conceptually, the social relations discourse allowed us to frame staffing in an open system in which HR practices involving expatriation are shaped by the intersections between the choices of MNCs, the actions of workers, and the mediation of institutional players. Empirically, this article presents three case studies of Chinese MNCs in Europe to illustrate the tiered expatriation of managerial staff, technicians, and operational workers from interchangeable sources of labor. The HR policy implications suggest greater diversity in the formation of international staffing for MNCs.     

From original equipment manufacturing to branding: entrepreneurship,strategic leadership,and Taiwan’s firm transformation

This paper investigates firm transformation from original equipment manufacturing (OEM) to original brand manufacturing (OBM) based on variant experiences of Taiwan’s top global brands. Taking the competitive advantage of practicing OEM for multinational corporations (MNCs), latecomer firms can generate capital and accumulate capabilities by engaging with the global production network. Rarely does every firm transform into a global enterprise. We propose that only entrepreneurs with strategic leadership competence, which serves to manage a delicate balance between stability and change in a firm, are capable to facilitate firm transformation from OEM to a global enterprise practicing OBM. We provide an analytical framework that combines the research fields of entrepreneurship, strategic management, and leadership to analyze firm growth and firm transformation of Taiwanese firms. In light of possible branding dilemma when straddling dual-track businesses, successful transforming firms can alleviate this problem either by separating their OBM units from their OEM units or by creating a symbiotic relationship with their MNC customers. How Taiwanese firms first took advantage of initiating OEM to create capital and capabilities and later transformed into OBM provide useful experiences for other latecomer firms.     

Der Markteintritt multinationaler Unternehmungen in Märkte an der Basis der Einkommenspyramide

It has been widely accepted that poverty alleviation can’t be achieved without including the private sector. Especially, foreign multinational companies (MNCs) are highlighted in this context and are considered as a key to unlock the economic potential of low-income markets by linking them with more developed markets and facilitating the transfer of financial and technological resources. The international business literature, however, lacks of theoretical insights and systematic empirical evidence of MNCs entering low-income markets. Therefore, this study sheds light on the questions why MNCs enter low-income markets, how MNCs operate and how they gain knowledge in these markets. Using a multiple case study approach, we analyze MNCs with business activities in low-income markets by taking recourse to the internationalization process model of Johanson and Vahlne. The results reveal that companies develop knowledge by enlarging their mode of market commitment to a new level that exceeds investments of foreign manufacturing and production facilities.     

探讨台湾中小型家族企业在大陆市场之经营策略

有鉴于家族企业的经营策略形成有别于一般企业的形成模式，本研究探讨台湾中小型家族企业经营策略之形成模式，利用观念性研究架构、专家问卷以及企业问卷的设计，量化并综合性讨论，归纳出台湾中小型家族企业的经营策略成功因素，为台湾家族企业经营策略提供新的思考，以便在市场机能与商业利益的引导下，研拟具体措施协助台湾中小型家族企业，成功融入不同的文化，以达到永续生存与成功获利的目的。本研究透过文献分析与实证分析结果的汇整，得出三个结论：独立自主的家族管理者是家族企业成功生存的关键；良好的内部凝聚力是家族企业经营的必要条件；良好的外部顾客关系是家族企业的成功要素。     

The effects of labour costs and workplace constraints on foreign direct investment among highly industrialized countries

Drawing on economic propositions underlying theories of foreign direct investment and organizational propositions underlying international human resource management strategic decision making, the theoretical model developed herein integrates two distinct but interrelated strategic HRM assessments. In deciding where to invest, multinational companies (MNCs) assess both (1) the net comparative labour cost advantages associated with alternative host-country IR systems and (2) the comparative flexibility afforded them by alternative IR systems to either transfer or create preferred HRM strategies abroad. The results of the present study indicate that, on average, MNCs from the major investor countries of the world give substantial weight to differences in national IR systems in deciding how much to invest across alternative high-skill, highwage countries. In particular, the evidence indicates that MNCs have invested more in countries with higher skills, lower compensation costs and lesser government and collective bargaining constraints on MNCs' flexibility to set the terms and conditions of employment or otherwise deploy preferred HRM practices abroad.     

The renewed ‘American Challenge’: a review of employment practice in US multinationals

Despite the extensive literature concerned with IR practice in American multinational companies (MNCs), there are serious gaps in our understanding of how this group of firms manages their international workforces. In this paper, we set out a framework of ‘four key influences’ on the way MNCs approach the management of labour and go on to use this framework to assess existing literature concerned with US MNCs. While this review reveals a number of general tendencies—for example, American MNCs tend to be highly centralised in the decision making on IR matters—it also reveals a number of gaps and weaknesses. In particular, we argue that previous research has failed to develop a convincing understanding of how the ‘embeddedness’ of US MNCs in their country of origin informs the behaviour of these firms as employers outside the USA. The paper ends by outlining a programme of research into US MNCs.     

“大三通”下闽台合作新气象——以龙岩为例

2008年12月15日"大三通"的全面启动,给仅有一水之隔的福建带来新的发展机遇,台商在闽投资进入了一个新阶段。本文以龙岩为例,通过实地考察作者家乡,研究闽西地区的闽台合作关系和变化,为本省甚至全国各地区闽台合作提供参考借鉴和经验,进一步扩大闽台的人员往来与两岸经济贸易合作,达到两岸的经济共赢与政治统一。     

Multinationals and changing national business systems in Europe: towards the ‘shareholder value’ model?

This article reviews recent development in employment relations in MNCs, within the context of the varied and changing business systems within Western Europe. Focusing on Germany, France, Sweden and the UK, we analyse both the effects of national corporate governance systems on MNCs, and the extent to which MNCs specifically, and globalisation more widely, have affected the nature of national business and employment systems. While elements of a move towards a more ‘Anglo‐Saxon’, economically liberal model of corporate governance and employment relations can be detected in all four countries, this is far from complete. Cross‐national differences in business systems within Europe therefore continue to exert effects upon MNCs.     

The phenomenon of young talent management in Russia—A context‐embedded analysis

This article describes the particularities of young talent management (TM) in Russia and explains them through a context‐specific analysis. It adopts a multilevel perspective that acknowledges the relevance of context at three levels: the macro environment, the organizational, and the individual. Data were gathered through 46 interviews with HR managers and young talents from six Russian companies and six Russian subsidiaries of foreign multinational companies (MNCs) active in a variety of industries. Following the contextualization approach, this study offers important insights into the interplay between macro, organizational, and individual factors as well as their isolated or interrelated effects on TM. While multilevel contextualization provides the rationale behind certain TM practices and the particular focus on young talents in Russia, it also explains why Russian companies are inspired by global best TM practices. Thus, contextualization allows for explaining the coexistence of a specific environment and nonspecific (global best) TM practices. Important particularities are revealed also when compared to the results of TM studies in other emerging countries. The article contributes not only to the TM discussion, but also to the wider field of international human resource management and the international management literature regarding contextualization.     

Price Behavior of Qualified Companies around the Audit Report and Report Announcement Days: The Case of Taiwan

This study investigates the stock price behavior of companies with qualified opinions around (1) the audit report day and (2) the report announcement day. Using a sample of 106 Taiwanese public companies during 1999–2007, we find negative abnormal returns 5 days following the audit report day. Returns that are more negative are associated with a decrease in insider ownership during several months before the audit report day. These results imply that investors can infer qualified opinions or that there is information leakage of qualified opinions. We also find that the average cumulative abnormal return over the 20 days following the announcement day of qualified reports is about ?25%, which is much more pronounced than that in Anglo‐Saxon countries. We ascribe this finding to a rule unique to Taiwan: qualified companies are likely to be subject to mandatory delisting if they cannot restate reports with unqualified opinions.