Stakeholder engagement through empowerment: The case of coffee farmers

While most studies on stakeholder engagement focus on high‐power stakeholders (typically, employees), limited attention has been devoted to the engagement of low‐power stakeholders. These have been defined as vulnerable stakeholders for their low capacity to influence corporations. Our research is framed around the engagement of low‐power stakeholders in the coffee industry who are, paradoxically, critical resource providers for the major roasters. Through the case study of Lavazza—the leading Italian roaster—we investigate empowerment actions addressed to smallholder farmers located in Brazil, India, East Africa, Haiti, and the Dominican Republic. We contribute to the theoretical discussion around engagement and empowerment by developing a framework linking together areas of empowerment (defined in the literature) and specific empowerment actions (emerging from our interviews). Our insights shed light on how organizations can design empowerment strategies leading to more effective stakeholder engagement and how empowerment actions can contribute to turn low‐power stakeholders into active business partners. We demonstrate that moving from a traditional competitive view of corporate–stakeholder relationships to a stakeholder theory view based on a logic of cooperative partnerships reinforces the idea that stakeholder engagement and empowerment are both entangled with the value creation process.     

Export Productivity and Specialisation: A Disaggregated Analysis

The paper analyses export productivity and trade specialisation in China, Brazil, India and South Africa. The investigation calculates a time‐varying export productivity measure using highly disaggregated product categories. The modelling shows that export productivity is determined by real income and human capital endowments. But the empirical analysis also reveals significant differences in export productivity and specialisation for countries with comparable per capita income levels.     

Beyond Paternalism: Cross-cultural Perspectives on the Functioning of a Mexican Production Plant

Expatriate managers of international businesses in emerging countries often struggle to mobilize their workforces. They sometimes perceive profound cultural differences as a barrier to the progress of their organizations. Some international businesses may adopt a paternalistic attitude toward their employees; but this questionable strategy brings mixed results. Are there ways out of paternalism for international businesses in emerging areas? This paper examines the diverging views held by foreign managers and local personnel of a foreign-owned production plant in Mexico, which managed to mobilize its workforce by building a strong sense of community, allowing a certain form of collective control to replace the paternalistic model, with its bonds of personal allegiance. Contrasting perspectives between Mexican and foreign employees show that intercultural misunderstandings, rather than the peculiarities of the local culture, are the greatest challenge to cooperation.     

Ethical Cultures in Large Business Organizations in Brazil, Russia, India, and China

This study focuses on comparison of perceptions of ethical business cultures in large business organizations from four largest emerging economies, commonly referred to as the BRICs (Brazil, Russia, India, and China), and from the US. The data were collected from more than 13,000 managers and employees of business organizations in five countries. The study found significant differences among BRIC countries, with respondents from India and Brazil providing more favorable assessments of ethical cultures of their organizations than respondents from China and Russia. Overall, highest mean scores were provided by respondents from India, the US, and Brazil. There were significant similarities in ratings between the US and Brazil.     

Determinants of Success of Employer Branding in a Start‐up Firm in Nigeria

This article aims at providing an understanding of factors that determine the success and failure of employer branding. An African steel‐producing start‐up company developed an employer brand image, which enabled it to effectively attract and hire talent from the labor market and inspired high engagement and productivity. A few years later, the firm lost its attractive brand image and its employer brand loyalty also declined. The study is a longitudinal investigation, and data were collected from policies and through structured interviews with the employees, ex‐employees of the organization, and prospective employees. Findings show amazing success of the employer brand in the first six years in talent attraction, hiring, engagement, and retention. Thereafter, the brand lost its potency, and its dysfunctionality significantly impacted on the future of the firm—employee dissatisfaction, decline in productivity, and increase in turnover. The reasons include a toxic organizational environment, overbranding, failure to keep promises, disconnect between employer branding and human resource strategy, shift of emphasis by senior management from people to production, and lack of a dynamic and differentiated employee value proposition. The study offers practical lessons to managers. © 2017 Wiley Periodicals, Inc.     

The Impact of Trade Openness on Regional Inequality: The Cases of India and Brazil

Regional inequalities are large in India and Brazil and represent a development challenge. This article aims to determine whether regional inequalities are linked to a country's trade openness. An annual indicator of regional inequalities is constructed for India for the period 1980–2004 and for Brazil from 1985–2004. Results from time series regressions show that Brazil's trade openness contributes to a reduction in regional inequalities. The opposite result is found for India. India's trade openness is an important factor aggravating income inequality among Indian states. In both countries, inflows of foreign direct investment are found to increase regional inequalities.     

In Search of Environmental Spillovers

There is an extensive literature that examines the relationship between foreign direct investment (FDI) and the productivity and competitiveness of domestic firms. Using estimation techniques from the productivity spillover literature, this paper tests for the presence of environmental spillovers from foreign firms. On the basis that foreign‐owned firms may encourage firms in their extended supply chain to improve their environment‐related management practices, evidence for the existence of environmental spillovers should be easier to find than productivity spillovers where firms naturally attempt to minimise intra‐industry knowledge leakage. In this paper we show that, first, foreign‐owned firms are more likely to implement environmental management systems (EMS) and, second, that the presence of foreign‐owned firms in those sectors that a firm supplies can encourage good environmental practice. This is especially true if a firm is foreign, has high absorptive capacity, and operates in the presence of formal and informal networks.     

When Do Local Firms Benefit from Inward Foreign Direct Investment? A Longitudinal Study of China's Manufacturing Sector Covering 1998–2007

Using comprehensive panel data on manufacturing firms in China during the 1998–2007 period, this study examines whether and when recipient local firms benefit from foreign direct investment (FDI). Local firms’ productivity improvements by the presence of foreign entrants are estimated, and according to the results, the relationship between FDI and local firms’ productivity shows an inverted U‐shaped pattern, with productivity increasing up to a certain point beyond which a higher level of FDI reduces local firms’ productivity. More importantly, the U‐shaped pattern is found for FDI from both non‐HMT foreign firms and overseas Chinese HMT (Hong Kong, Macao, and Taiwan) firms. In addition, the U‐shaped pattern varies across subnational regions such that the threshold at which an increase in FDI reduces productivity is lower for indigenous firms in coastal regions. This suggests that in China, local firms in inland and rural regions are the top beneficiaries of spillover effects. © 2015 Wiley Periodicals, Inc.     

Mindfulness and the challenges of working from home in times of crisis

Many employees unexpectedly were required to work from home during the COVID-19 pandemic of 2020. With this abrupt change came the challenge of blurred lines between career and personal life. Lacking designated home office spaces, countless individuals had to create improvised work setups in living rooms, kitchens, bedrooms—wherever there was space. Moreover, the closure of schools forced many working parents to attempt productivity while concurrently supervising their children. As a result of these changes, numerous employees have experienced lower work productivity, lessened motivation, increased stress, and poorer mental health. One approach that may help employees going through the challenges associated with working from home is mindfulness. Mindfulness may be particularly beneficial as it can (1) help employees mentally disconnect from work when they need to; (2) improve individuals’ attention to work tasks and thereby improve their performance; and (3) allow workers to better manage screen fatigue. In this installment of Work/Life Balance, we elaborate on how mindfulness may help employees deal with these work issues, explain how mindfulness can be cultivated, and provide a list of mindfulness techniques. We also provide a set of recommendations for managers and team leaders responsible for their employees’ well-being and productivity.     

Market Entry Strategies in Emerging Markets: An Institutional Study in the BRIC Countries

This article addresses two of the strategically important questions of market entry strategies in emerging markets: how to enter and when to enter. Furthermore, we investigate the relationship between market entry strategies and market success. On the basis of the institutional theory, we develop hypotheses that are tested against data collected from 564 foreign firms with operations in the BRIC countries (Brazil, Russia, India, and China), using an online survey. Our findings suggest that market entry strategies have a significant effect on market success, showing the greatest market success in India and the lowest in China. We also find that entry mode and length of operation exhibit a significant positive effect on market success. © 2013 Wiley Periodicals, Inc.     

Outward FDI and Productivity: Micro‐evidence from Slovenia

This paper uses a rich data set of Slovenian manufacturing firms active in the period 1994–2002 that contains information on outward FDI and exports to different markets in order to test three empirical hypotheses that relate the decision for outward FDI to total factor productivity. First, the evidence supports the hypothesis proposed by Helpman, Melitz and Yeaple (2004) that more productive firms are more likely to invest in a foreign affiliate. Second, the hypothesis proposed by Head and Ries (2003 ) that less productive firms may be encouraged to invest in low‐income countries is rejected by the data. However, the main contribution of the paper is to confirm the third hypothesis that required firm's productivity increases with the number of markets that the firm serves, i.e. there is a positive relationship between the number of a firm's foreign affiliates and its total factor productivity.     

Foreign direct investment productivity premium and foreign affiliates' heterogeneity: A comparison between advanced and emerging market overseas investments in the EU

This paper aims to investigate the existence of productivity heterogeneity among foreign‐owned firms (FOFs) based in the European Union (EU). Using firm‐level data for a sample of FOFs investing in the EU over the period 2006–14, we find that foreign affiliates from advanced countries (AFOFs) show a positive productivity gap compared to foreign affiliates from emerging countries (EFOFs). However, when we consider the type and the motivation of foreign direct investment, our results reveal that, while AFOFs always seem to be more productive than EFOFs in manufacturing sectors, EFOFs appear to enjoy a productivity premium compared to AFOFs in the services, when their activity occurs in the same industry as their parent and they operate in less knowledge‐intensive market sectors.     

Engaging employees for quality of life: mediation by psychological capital

The objective of this study is to examine the mediating role of psychological capital (PsyCap) between work engagement and the six dimensions of quality of work life (QoWL). Data were collected from the employees working in the accident and emergency department of tertiary hospitals in India involved in rendering emergency healthcare services. Structural analysis showed that PsyCap fully mediates the relationship between work engagement and control at work and partially between work engagement and the other five dimensions of QoWL. These results augment broaden and build theory by explaining the role of PsyCap in channelizing the positive effect of work engagement to improve employees’ QoWL. Hospitals with the accident and emergency department are encouraged to recruit psychologically capable employees. Such employees can transfer the benefits of their personal resources and engagement to the quality of life at work and be less prone to burnout.     

The impact of inward FDI on local companies’ labour productivity: evidence from the Italian case

The article aims to investigate the impact of inward foreign direct investment (FDI) occurring through acquisition upon the local target company’ performance, as measured by labour productivity. It relies upon the idea that multinational enterprises (MNEs) act as a device to transfer firm‐specific proprietary assets, thus causing their subsidiaries to exhibit better performance than their host country rivals. Specifically, our results show that foreign acquisitions generally increase the local target companies’ labour productivity in the medium term after the acquisition. The empirical evidence refers to foreign acquisitions that occurred in Italy in the period 1994–1997.     

Predicting Foreign Firms’ Expansion and Divestment Intentions in Host Countries: Insights from Ghana

Foreign firms’ strategic decisions in a host country after the initial investment are important issues worth extensive academic enquiry. This issue is, however, underresearched and the scant literature that does exist is focused on developed countries, despite the increasing interests and investments by firms in developing countries. Using the case of a developing sub‐Saharan African (SSA) country (Ghana), this study attempts to close this gap in the literature, as it explores the factors that can influence foreign firms’ strategic decisions regarding expansion, downsizing, relocation and termination of their operations. The study found that host countries’ business environments play an important role in foreign firms’ subsequent strategic decisions. The study particularly found that favorable government regulations, low cost factors and good infrastructure are important in influencing foreign firms’ expansions decisions. Unfavorability of these factors within the business environment on the other hand will stimulate strategic divestment. © 2014 Wiley Periodicals, Inc.     

Sales employees’ polychronicity and sales-service ambidexterity: Mediation of work engagement and moderation of store manager support

Sales employees are encountered with increasing job demands and volatile changes in the retail environment. In particular, the adoption of smart technologies in the retail sector has pressurized sales employees to be versatile and agile in the new marketplace. In this sense, performing multiple tasks within a limited time frame has become an important quality required for sales employees. Grounded in the job demands-resources model, we proposed that sales employees’ individualized resource (i.e., polychronicity) would be positively related to their sales-service ambidexterity though work engagement. We further posited that an organizational resource (i.e., store manager support) synergistically interacted with polychronicity to predict work engagement and subsequent sales–service ambidexterity. To test propositions, we collected multilevel data from 292 sales employees in 43 home-furnishing stores in India. Results demonstrated that the positive association among work engagement, polychronicity, and sales–service ambidexterity was more pronounced when store manager support was high than when it was low. These findings offer implications to overcome challenges faced by retail stores by indicating factors predicting sales–service ambidexterity in retail.     

Who in Brazil Will Gain from Global Trade Reforms?

The potential impacts of multilateral trade liberalisation on developing countries are the subject of numerous controversies. One particular concern is that Brazil, a major agricultural exporter and a country with one of the world's most unequal income distributions, will reap a substantial share of the potential benefits to developing countries from agricultural trade reform, and that most of those benefits will go to large‐scale commercial farmers rather than to the country's smallholders. This claim is explored via a global general equilibrium model and a national model of Brazil containing multiple agricultural and non‐agricultural households. Brazil is found to account for nearly one‐half of all the benefits to developing countries deriving from global agricultural trade reform. These gains are associated with improvements in the welfare of each group and a lower incidence of poverty. Large‐scale producers gain more than smallholders as they tend to be relatively specialised in export products, but there are important gains to agricultural employees, who are relatively poor, and to urban households, who benefit from the expansion of the agro‐food sector. Overall, there is no discernible impact on income inequality, and no evidence that the gains to commercial farmers occur at the expense of poorer households.     

Does global value chain engagement improve firms' wages: Evidence from China

Better understanding of the effect of the global value chain (GVC) on wages is a key issue for determining welfare gains from engagement in international integration. We study whether and how China's engagement in the GVC enhances firms' wage by using firm‐level and customs transaction‐level data covering the period 2000–06 with the methods of propensity score matching (PSM), difference in differences (DID) and generalised propensity score (GPS). The empirical results show that first, GVC engagement can improve firms' wage. Second, the improvement effect is more prominent in capital‐intensive and foreign‐invested enterprises. Third, the degree of embedment in the GVC shows a U‐shaped relationship with wages (the marginal improvement changes from decreasing to increasing). Finally, by analysing the mechanism, we find that participation in the GVC ultimately improves the overall wage level of enterprises through the productivity effect and the reallocation effect of labour demand.     

School foodservice employees’ beliefs about local produce use at work and home

Sustainability practices are becoming an essential part of foodservice businesses. Schools often purchase local produce and use it in school meals as part of their sustainability efforts. School foodservice employees play an important role in the effectuation of these efforts and understanding their perceptions is important. A questionnaire was used to assess foodservice employees’ beliefs regarding the quality and benefits of local produce use in schools. Results indicate differences in employees’ perceptions regarding benefits and quality of local produce based on their perception of the importance of purchasing local produce for home use.     

Foreign direct investment and productivity spillovers in Irish manufacturing industry: evidence from plant level panel data

It is often argued that foreign firms may enhance the productivity of indigenous firms in an economy, through forward or backward linkages. Such externality effects typically are called “productivity spillovers”. In terms of foreign direct investment (FDI), Ireland is one of the most globalized economies in the world, having pursued a strategy of promoting investment by foreign companies for over 40 years. This article examines possible productivity spillovers from foreign‐owned firms to indigenous firms in the Irish manufacturing sector, using plant‐level data on all manufacturing firms for the period 1991–1998. Despite Irish policy commitment to building linkages between foreign and domestic firms, we find only weak evidence of spillovers and this evidence is sensitive to the definition and measurement of foreign presence.