Managing the embedded multinational: a business network view

This response welcomes A. Godley and H. Hang's comment on N. Alexander's recent article. It acknowledges those theoretical issues on which there is broad agreement and explores theoretical issues around which debate is likely to focus in the future. Consideration is given to international retailing in the first and second global economies and the problems surrounding the evaluation of longer term trends. It explores the nature of innovation and the international transfer of retail innovation in an international retail firm and market context. Market structural conditions and their impact on international retail activity are considered. Further areas for historically based research are suggested.     

团队内冲突对团队决策质量和满意度影响的实证研究

Conflict is a pivotal variable influencing team decision performance. This article reviewed literature on intragroup conflict and studied how different types of conflicts affect perceived team decision quality and satisfaction. We conducted a survey on 156 managers and found that the task-relationship conflict dimensions are also valid in the Chinese context. We also found that both task conflict and relationship conflict are negatively related to team members’ decision satisfaction. Relationship conflict acts as a mediator between task conflict and decision satisfaction. __________ Translated from Guanli pinglun 管理评论 (Management Review), 2007, 19(7): 10–15     

The multinational corporation as a coordinated network: Organizing and managing differently

A multinational corporation (MNC) has a number of unique advantages. Of these, the flexibility to operate as a coordinated multinational network places the strategic emphasis on resources and learning. Coordination and integration are needed to provide coherence in resource commitments. Operating as a coordinated multinational network can provide the flexibility needed to implement global strategies. A network organization results in linkages and interrelationships that require organizing and managing differentially. This article focuses on the organizational and managerial characteristics that are needed to operate as a coordinated multinational network. These characteristics include: a strong central leadership role; the flexibility to respond to opportunities; a differentiated, multidimensional focus; distributed, interdependent capabilities; the managerial capacity to achieve coordination; and a collaborative decision-making process. This article also discusses the changes needed in structural mechanisms and systems. Explored are the planning process, performance evaluation and control, information technology/management information systems, and human resource management. © 1999 John Wiley & Sons, Inc.     

Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team

In this paper, we link the discussion on the differentiated multinational corporation (MNC) with organisational mechanisms for knowledge development and sharing. The aim is to explore the impact of different organisational mechanisms on knowledge development and sharing. Using case-study data—drawn from the same MNC—to explore two different organisational mechanisms, a Centre of Excellence and a transnational team, the findings illustrate how multifaceted knowledge development and sharing are. The organisational structure of the two organisational mechanisms partly determines whether knowledge development occurs locally or globally. This, in turn, has consequences for how knowledge sharing evolves. The sharing process is like a double-edged sword: how to share globally while allowing for local adaptations or how to share locally while developing global knowledge.     

Digital touch in sponsorship: Getting closer to the brand through virtual reality

Supporters are consuming more and more sporting events through digital platforms. Brands should adapt to these new consumption patterns in order to strengthen their connection with their customers. Today, researchers and practitioners can create more interactive and enjoyable experiences through virtual reality (VR) applications. Through two studies conducted on VR during sporting events, we show that mentally representing the touch experiences of players on the field reduces the psychological distance between the supporter and the player, which strengthens the supporter's attachment to the team and, through the same attachment, to the sponsor (Study 1). We also highlight that these positive effects of VR compared to real touch (using a player's jersey) is linked to the improvement of immersion, which stimulates touch imagery (Study 2). We discuss the implications of this research for theory and practice in the sports business and other sectors.     

Structuring assignments to improve understanding and presentation skills: Experiential learning in the capstone strategic management team presentation

In the strategic management course, students select, analyze, and present viable future alternatives based on information provided in cases or computer simulations. Rather than understanding the entire process, the student's focus is on the final presentation. Chickering's (1977) research on active learning suggests students learn more effectively when participating in analysis, synthesis, and evaluation. The authors highlight instructional changes with students, gathering primary data independently and later comparing findings in a team-based scaffolding process. Statistical analysis of students' self-reported understanding scores both before and following the experiential intervention support the benefits. Qualitative comments by the students, embedded librarian, faculty, and business practitioners also indicate improved learning resulted from course modifications.     

Knowledge transfer between marketing functions in multinational companies: a conceptual model

A key competitive advantage of multinational companies lies in their ability to exploit locally created knowledge worldwide. This implies that such companies have to be able to transfer knowledge within organizational networks characterized by separation through time, space, culture and language. Given the pivotal importance of knowledge transfer for the competitiveness of multinationals, it is remarkable that the process of transferring knowledge effectively across dispersed units of multinational corporations has only attracted little and rather fragmented research interest. What appears to be missing is a unifying framework that serves as a basis for a research agenda. Our paper aims to develop such a framework. Specifically, we propose a conceptual model of knowledge transfer between marketing functions within multinationals and advance research propositions for future empirical testing.     

Human resource management in multinational and domestic enterprises: A comparative institutional analysis in Southeast Asia

This article looks at the relative impact of context on the role of senior managers. It compares HR directors of domestic enterprises (DEs) with those of multinational enterprises (MNEs), within an emerging market setting, based on a survey of HR directors in Brunei. We found that, with the exception of some aspects of selection and recruitment, HR directors of MNEs accorded a higher priority to strategic tasks but were more reluctant to delegate. This study confirms the importance of MNEs in pioneering more modern and integrated approaches to people management but also demonstrates the limitations to the extent where they might act as evangelists of new practices that are adopted by their local peers. In contrast, local firms were more likely to concentrate their attention on administrative, rather than strategic, issues. We draw out the implications of our findings for theory and practice.     

Introducing Western-style HRM practices to China: Shopfloor perceptions in a British multinational

The management of host country employees is often portrayed as a particularly fraught dimension for multinational firms. The problems involved are considered exponentially greater when there are substantial institutional differences and “cultural distance” between the host country and a multinational firm's parent country, as is assumed to be the case for Western firms operating in mainland China. Based upon detailed case study research conducted at a UK-invested firm in China between 1999 and 2003 and a comparative study of a Chinese state-owned firm, this paper explores the veracity of such assumptions. The findings indicate that Western human resource management (HRM) practices can be transplanted successfully and questions the degree to which foreign-invested enterprises (FIE) need to adopt “the Chinese way of doing things”. Indeed, such practices can be innovative in the Chinese context and provide a competitive source of differentiation for multinationals as employees.     

Pushing forward SME CSR through a network: an account from the Catalan model

This paper presents the results of a Catalan project in which an academic institution acted as a practitioner to promote corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs). The project involved the establishment of a working network with intermediate organisations and the creation of specific tools for the purpose. The paper is set up as a case study, emphasising inclusion, representativity and legitimacy as key elements for the successful construction of a network to promote CSR in SMEs. It underlines the assumptions behind the functioning of this network and the learning findings from this public–private initiative. Presented from a public policy perspective, the paper emphasises the need for coordination in terms of the growing number of initiatives fostering CSR in SMEs. It presents a brief account of the material results, focusing on the process of creating a consensus within the network. It opens up a path for future research, exploring how network management and leadership can be seen as key issues when talking about corporate social responsibility (CSR) promotion in SMEs.     

A stranger in a strange land: Micro political risk and the multinational firm

When a firm chooses to enter or continue business in a foreign market, it becomes exposed to associated political risks which should be assessed and managed. Help is available for becoming aware of the level of macro political risk; that is, the political risk across industries or all businesses in entire countries or geographic regions. Yet, surprisingly little guidance exists by which to identify and assess firm-specific political risks, termed micro political risk. Herein, we offer some new perspectives on the nature of micro political risk within a host country, illustrating how it stems from economic, societal, and governmental forces. We have compiled a number of firm-specific variables which can affect the firm’s micro political risk profile, and advance an innovative methodology by which executives can address these variables and develop an assessment of their firm’s micro political risk. Examples of micro political risk situations are provided, along with discussion of implementing the proposed methodology.     

Differential profit rates in long period analysis: The nonlinear case

In this note, we generalize the long‐period linear model with differential profit rates due to “idiosyncratic” factors considered by classical economists and developed in D'Agata and Mori. More specifically, we remove the assumption of linear evaluation functions and the assumption that in the economy there are as many producers as industries.     

Employee service abandonment in offshore operations: A case study of a US multinational in India

Indian Business Process Outsourcing (BPO) exports industry has witnessed an exponential growth over the last few years. This has been accompanied by a shortage of talented skilled workers to serve the BPO sector. Attracting and retaining talented employees has become the chief challenge of HR departments in the BPO industry. This study examines the demographic antecedents of job abandonment among call centre employees in India using a large firm level data. The theoretical and practical implications of the findings are discussed.     

Language and identity in the shadow: A multi-case study of a Japanese multinational corporation

This paper explores how different organizational identities can be constructed by the use of multiple languages within a multinational corporation’s (MNC) subsidiaries. Scholars are increasingly interested in the importance of language in international business but little is currently known about how identities interact with language across an MNC’s subsidiaries. Applying language and social identity theory, this paper analyses the interactions between organizational identity and the use of multiple languages within the lines of communication in the Thai, Taiwanese and US subsidiaries of a Japanese MNC, focusing especially on communications with customers and headquarters. The findings reveal the range of uses of different languages in the lines of communication and the attendant sharing and shaping of social identities in each subsidiary, thus highlighting the importance of the contexts of subsidiaries. In addition, in a sharp contrast to the approach to linguistic identity assumed in the current literature, the findings reveal how national identity can be sustained independently of the use of language. Moreover, the findings also reveal that perceived identity is influenced not only by actors’ language abilities and ethnicity, but also by their post-colonial views on both parent and host countries, and how this underpins shadow organizational structures.     

Illegal mid-block pedestrian crossings in China: gap acceptance,conflict and crossing path analysis

China has experienced unprecedented economic growth and changes in urban form in the past decades. Increased urbanisation and motorisation puts pedestrians and automobiles at greater conflict. Because of China's long urban blocks (superblocks), many conflicts occur mid-block at informal or illegal crossings. This study focuses on factors influencing mid-block crossing and gap acceptance. We remotely observed illegal mid-block crossing of a six-lane urban arterial in Kunming, China, tracking 522 accepted gaps and 152 rejected gaps in a two-stage crossing (roadside to median and median to roadside). We fit a probit discrete outcome model to the data to estimate environmental determinants of gap acceptance (and rejection) behaviour, including gap size, vehicle speed, time waiting and gap lane position. We also estimate a conflict model, focusing on parameters that influence the probability of vehicle speed changes or lane deviations.     

Local consumer well-being in a multicultural marketplace: From conflict to engagement

This study offers a nuanced understanding of how local consumers experience, interpret and acculturate to expatriates' practices within a multicultural marketplace. We adopt Demangeot et al. bridge framework and its marketplace domains (security, visibility, opportunity, utility, intercultural competence and cultural navigability) to unpack locals' consumption patterns and experiences that produce multicultural tensions or multicultural engagement that contributes to locals' well-being. Data were collected via 2 focus groups and 20 in-depth interviews with local consumers in Qatar. The findings offer several theoretical and managerial insights that could enrich the scant literature on acculturation of local minorities within multicultural non-homogenous societies and enhance our understanding of how local consumers engage with culturally different experiences.     

IPR policies and determinants of membership in Standard Setting Organizations: a social network analysis

Whereas technical standards and Standard Setting Organizations (SSOs) are omnipresent and essential to mass production and communications, relatively little is formally known about the propensity of firms’ decisions to belong to certain SSOs. An understanding of such propensities can explain why some firms join SSOs (and others do not) and have implications for the regulation of SSOs. This paper uses a social network analysis technique to categorize/place firms in SSO communities and then empirically analyzes their propensities to belong to SSOs. We concentrate our study on standard setting organizations’ features and their intellectual property rights (IPR) policies such as licensing rules, disclosure requirements, as well as the features of the decision process of standards. Using data on more than 1060 member firms as participants in 28 SSOs, we are able to uniquely graph the membership of firms in SSOs by highlighting some important characteristics through community detection. The results provide some novel insights into why firms might choose certain SSO communities over others.

     

Internationalization of multinational banks: a study of foreign direct investment in seven Latin American countries

The article attempts to explore and contrast the different factors that influence the foreign direct investment (FDI) decisions of multinational banks. Employing eclectic theory, an estimation model with panel data from seven Latin American countries is set to test the proposed hypotheses. The results highlight an increase in foreign assets, removal of banking restriction, banking concentration, and capital cost differential in the local banking system as determinants of specific location advantages for attracting banking FDI. Other factors such as cultural proximity and crisis also have a significant impact on banking FDI. Discussions and implications are debated before conclusions are drawn for a future research agenda.