Subsidiary strategy of emerging market multinationals: A home country institutional perspective

We examine the effects of home country institutional factors, namely, home country government support, domestic institutional weaknesses, and state ownership on the subsidiary-level strategy of global integration (I) and local responsiveness (R) of emerging market multinational enterprises (EMNEs). We draw upon the home country institution-based view and the I/R framework to develop our theoretical model. We empirically test our hypotheses using an original new survey data collected from Chinese multinational subsidiary managers supplemented with parent-level and country-level data. We find that home country government support and domestic institutional weaknesses have significant and negative effects on global integration strategy of Chinese multinational subsidiaries. On the other hand, domestic institutional weaknesses push foreign subsidiaries to pursue local responsiveness strategy. Nevertheless, those with greater degree of state ownership in their parent firms are neither willing to disintegrate from their parent firms nor motivated to pursue local responsiveness strategy in order to deal with home country institutional deficiencies and develop new sources of competitiveness in foreign markets. Our findings have advanced the literature on subsidiary strategy in the context of EMNEs, and provide important implications for subsidiary managers and policy makers.     

Building local legitimacy into corporate social responsibility: Gold mining firms in developing nations

A transnational model of global strategy suggests that multi-national enterprises generally rely on proven global capabilities to adapt existing business models. Alternatively, this paper argues that the transnational model needs to be amended to allow for a hybrid approach that balances local and global strategies for multi-national gold (MNGs) firms working in developing nations. This is illustrated by Newmont Mining's efforts to develop local legitimacy through contributions to community development around its gold mining operations in Peru. We then compare the Newmont case with corporate social responsibility (CSR) at other MNGs. We have found that there appears to be an industry-wide institutional environment developing which includes local CSR projects in an attempt to balance the effects of capitalism between global markets and developing nations.     

Unpacking transnational corporate responsibility: coordination mechanisms and orientations

This article aims to advance the discussion of how multinational companies manage the tension between global integration and local responsiveness in their corporate social responsibility (CSR). In particular, it studies the relationships between headquarters and subsidiaries in a transnational CSR strategy and the types of coordination mechanisms used. Building on a qualitative study of a multinational bank, we find that in addition to formal and informal coordination mechanisms, a transnational CSR strategy cannot be fully understood without considering lateral learning and participatory decision making. Further, we suggest that discussions about the transnational approach to CSR should not be disentangled from the question about a company's CSR orientation. Finally, we propose some characteristics of transnational CSR and discuss its theoretical and practical implications.     

Alignment of strategy and structure in international firms: An empirical examination

It is increasingly recognized that many multinationals face dual global and local pressures. Foreign subsidiaries are thus expected to exhibit different needs in terms of their internal integration or responsiveness to local needs. This study examines the internal alignment of strategy and structure in multinationals when such dual pressures are recognized. The findings show a lower than expected level of internal strategy–structure alignment. A number of post hoc interviews suggest that contrary to the discussion of differences across foreign subsidiaries’ external environments, dual global and local pressures are frequently experienced within the same foreign subsidiary. The balancing act of aligning strategy and structure in MNCs is thus more complex than existing theoretical frameworks predict. Multinationals may choose to prioritize selective structural characteristics to achieve sufficient levels of both integration and responsiveness.     

Regional integration and the international strategies of large European firms

From the perspective of regional economic integration we decompose international strategy into regional integration strategy and three types of global strategy (global sales, global production, and pure global integration). Using 1100 firm-year observations we find that 60% of the largest European firms pursue a regional integration strategy. We also find that global strategies vary. We examine the firm specific factors that affect global strategies. In general, R&D capability determines a global production strategy, whereas firm size and managerial capability determine both a global sales strategy and a pure global integration strategy.     

Learning problems in transnational business education and training: the case of the MBA in Thailand

The transnational Master of Business Administration (MBA) programme has been one of the most popular official business training programmes amongst Thai business practitioners. Although the numbers of transnational business schools and MBA programmes are rapidly increasing, the programmes face numerous challenges from both local and global factors. This empirical study discusses the concept of learning in transnational MBA programmes in the Thai business training and cultural context. By investigating experiences from various key stakeholders, the study highlights various problems related to learning style and culture, learning and languages, the transferability of the Western managerial concept to the Thai context, and the value of Western learning resources for Thai business learners. The implication of the results of this study for the management of transnational programmes is that such management needs to respond to local conditions, regional forces and global factors rather than being locked into a standard model.     

International strategy and subsidiary performance in China

This study examines the underlying relationship between type of international strategy (global, multidomestic, and transnational) and subsidiary performance in the context of the People's Republic of China. After controlling for cultural, size, and equity effects, it is found that strategy type is important for the overall performance of international expansion. Different strategies affect multinational enterprise (MNE) subunits' performance differently. While global strategy is systematically related to low risk but suffers from loss of growth opportunities in an emerging market, multidomestic strategy is positively associated with local market expansion but comes at the expense of high uncertainty. Overall, transnational strategy outperforms other postures in aligning with a dynamic emerging market and attaining benefits from both ownership-specific and country-specific advantages. Transnational strategy increases operating flexibility which in turn spurs managerial discretion to respond profitably to the business potential of the global marketplace. © 1999 John Wiley & Sons, Inc.     

跨国公司撤资研究的述评与展望

随着跨国公司不断地在全球范围内进行直接投资和调整布局,由此引发的撤资行为逐渐受到一定的关注。尽管现有研究成果十分丰富,但作为国际商务活动的跨国公司撤资行为仍然没有得到应有重视和充分解释。本文从跨国公司撤资的含义与类型、动机与原因、影响与对策等方面对国内外现有研究进行梳理,评述了相关研究的进展与不足,并提出未来应该从微观层面对撤资行为进行多学科交叉研究,构建完整的跨国公司撤资理论体系。     

International strategy’s effects on retailers’ local implementation and performance

Retailers dynamically expand abroad and strategically seek local performance because their business is local. However, knowledge of the contribution of retail firms’ international strategies to subsidiaries’ local performance is limited. Based on the prominent I/R strategy framework, the authors conceptualize integration/responsiveness as the transfer/local generation of firm-specific advantages and analyze (direct and indirect) paths of varying degrees of I/R via local implementation decisions to performance. Because retailers’ firm-specific advantages have a limited geographic reach, different successful paths are expected in close and distant countries. Empirically, a survey based on face-to-face-interviews with 126 retail CEOs and expansion managers, partial least squares structural equation modelling and bootstrapping-based mediation analyses were conducted. The results reveal only indirect paths of international strategy to local performance through local standardization/centralization. Unique insights into the paths of firm? strategy to subsidiary performance emerge, such as important tradeoffs between superior paths in close countries.     

Will the new competitive landscape cause your firm's decline? It depends on your mindset

A view of the new competitive landscape shows globalization, rapid technological change, and hypercompetition as conduits leading to either organizational decline or organizational growth. In this article we explain how managers can use four mindsets to convert potential threats posed by these environmental challenges into pathways of prosperity, instead of pathways of decline. A global mindset, or the ability to view the world using a broad perspective, converts globalization threats into growth opportunities by thinking beyond geographic boundaries, valuing integration across borders, and appreciating regional and cultural diversity. An innovation mindset, meaning a mental framework that fosters development and implementation of new ideas, transforms rapid technological change threats into opportunities by valuing constant generation of new ideas and business models, realizing sources of new ideas, and stressing next practices rather than best practices. A virtual mindset, or the ability of managers to hand over their firms’ activities to external providers, turns hypercompetition into prospects for growth by facilitating flexibility and responsiveness. Finally, a collaboration mindset, meaning a willingness to engage in business partnerships, converts all three challenges into opportunities by allowing firms to form successful partnerships that can lead to synergy by combining business complementarities.     

Tapping the power of local knowledge: A local-global interactive perspective

Existing theories of international business and strategy do not fully explain how local knowledge disadvantage faced by foreign investors can be mitigated. We conducted an in-depth qualitative study into four MNCs to investigate the micro-processes of how they generated value from their dispersed sources of local knowledge in China. The results suggest an interactive model: that MNCs employed management processes encompassing three strategically interconnected efforts—global knowledge penetration, local-global knowledge blending, and local-global knowledge integration. The model highlights the interplay between global and local knowledge and challenges extant research that solely focuses on the transfer of either home-based or local knowledge.     

Sustainability Issues in Transnational Education Service: A Conceptual Framework and Empirical Insights

ABSTRACT

Many transnational education (TNE) services have been operating successfully to export education. However, many other TNE programs and partnerships have also been terminated. TNEs' sustainability is under-researched; specifically, its sustainability from the contexts of strategic partnership considerations, all recognized TNE activities, and its sustainability indicators. This conceptual article analyzes literature on TNE partnership issues, the standardization-adaptation (StandAdapt) concept of international business strategy and sustainability issues, with an aim to establish an initial route to develop TNE services that would sustain business viability, centered on transnational market-specific conditions. The analysis suggests that there is a consistent interrelationship between different sustainability indicators and market orientation, which has implications for incorporating sustainability issues into TNE services and transnational strategies. An initial framework is proposed to develop TNE services in order to sustain TNE businesses. Some empirical insights are developed in support of this conceptual framework. Further research areas are discussed.     

跨国公司全球营销策略与在华营销活动研究

跨国公司在全球范围内进行扩张时,是采用一体化营销战略还是当地化营销战略一直是跨国公司在实际决策中遇到的难点,这同时也是近年来营销理论界争论的一个焦点。通过对全球化营销和当地化营销两种营销方式内涵的挖掘,进而以Prahalad&Doz(1987)提出的一体化——当地化分析框架为基础,研究跨国公司在华的营销策略。研究结果表明:几乎所有进入中国市场的跨国公司都把本土化作为获取中国的胜利之本。     

我国商业银行跨国经营分析——原因、现状和战略

我国商业银行跨国经营是随着我国经济融入全球经济程度日益提高的必然结果,有利于提高银行的经营管理水平和降低银行的地区经营风险,目前我国商业银行的国际化程度还不高,应该加快全球拓展的步伐,制定清晰的全球区位发展战略、海外业务发展战略和本地化战略。     

Correcting analytics maturity myopia

Companies face increasing pressure to compete in the practice of analytics and strive for analytics maturity to sustain their competitive advantage. A single-minded, narrow focus on gaining analytics maturity, however, leads to analytics maturity myopia. Based on our studies of analytical capabilities and numerous conversations with executives and managers, we offer a scorecard for organizations to identify the presence of analytics maturity myopia and propose a framework for organizations to correct this issue. The proposed framework partially explains the mixed and conflicting results regarding the relationship between analytics maturity and business value found in the literature. Specifically, we recommend that companies focus on three factors that are critical to realizing value from analytics initiatives: (1) a balanced view of value to different stakeholders, (2) a continuous expansion of the business ecosystem beyond current stakeholders to identify and pursue new opportunities, and (3) use of an emergent strategy to take advantage of unexpected opportunities and develop organizational agility.     

基于全球价值链整合的中国企业服务外包承接战略

在跨国公司对华业务不断发展的情况下,中国企业应以IT外包为重点,运用全球价值链理论构建中国企业承接服务外包的"三步走"战略框架。中国企业应该首先嵌入跨国公司主导的全球价值链,通过设立技术监听站与介入突破性创新、构建学习联盟与伺机反向并购、扩大企业规模与进行深度专业化等手段有针对性承接生产者驱动的IT外包、采购者驱动的IT外包和业务流程外包,最终掌握核心技术,实现自主创新。     

Unilever's Latin American Strategy in Yellow Fats,Ice Cream and Teas

Abstract

The article investigates the interplay between the changes in the large corporate strategy of a multinational and changes in the business environment in Latin America. In its international expansion, Unilever has traditionally used a decentralized national responsive strategy where local subsidiaries develop their markets with a great degree of autonomy. In response to globalization, Unilever moved towards greater business coordination and a more focused approach in the nineties. The article examines the impact of this reorganization on the firm's regional strategy in Latin America. We examine the firm's strategy in three food categories: fat oils, ice cream and tea-based products. We conclude that Unilever continues to use a strategy of national responsiveness with no attempt to coordinate its experiences across the region.     

MNC strategies and linkage effects in developing countries

The study addresses the implications MNC strategies have for linkage effects in developing countries. Two contrasting MNC strategies, which reflect an integration-responsiveness dichotomy, are scrutinized in terms of their effects on jobs among local linkage partners in developing countries. It is hypothesized that the investments of MNCs pursuing local responsiveness create more jobs among local linkage partners, but imply less job upgrading, when compared to investments undertaken by MNCs following strategies of global integration. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries.     

Dynamics of Islamic Financing in Malaysia: Causality and Innovation Accounting

This article addresses the underresearched issues of marketing challenges and business strategies/models for emerging markets. It suggests that firms need to fundamentally rethink their business models and marketing policies for emerging markets. Although strategies focusing on product affordability and availability are necessary, identification of niche market segments and making clear choices about which segments to pursue, with what value propositions will promote great success. Moreover, strategic flexibility, local sourcing, engagement of nontraditional partners, and local entrepreneurship will be important factors for successful pursuit of the emerging markets.