How Hybrids Manage Growth and Social–Business Tensions in Global Supply Chains: The Case of Impact Sourcing

This study contributes to the growing interest in how hybrid organizations manage paradoxical social–business tensions. Our empirical case is “impact sourcing”—hybrids in global supply chains that hire staff from disadvantaged communities to provide services to business clients. We identify two major growth orientations—“community-focused” and “client-focused” growth—their inherent tensions and ways that hybrids manage them. The former favors slow growth and manages tensions through highly integrated client and community relations; the latter promotes faster growth and manages client and community relations separately. Both growth orientations address social–business tensions in particular ways, but also create latent constraints that manifest when entrepreneurial aspirations conflict with the current growth path. In presenting and discussing our findings, we introduce preempting management practices of tensions, and the importance of geographic embeddedness and distance to the paradox literature.     

The Ethics of Global Supply Chains in China – Convergences of East and West

This paper addresses ethical issues surrounding global supply chains of multinational companies in developing countries. In particular, it considers the development and application of industry-wide ethical standards and codes of conduct for multinational supply chains in China. We describe and analyze the ethical norms and compliance components of such industry-wide regimes in the toy, textile, and consumer electronics industries. We argue that this development represents an positive attempt to institutionalize emergent international ethical standards and practices into this component of the Chinese economy.     

The Performance of Chinese Private Firms in Coping with a Global Financial Crisis: Who Is Best Positioned?

Using organizational flexibility as a research lens, we investigate how private firms, especially SMEs, in China cope with the 2008 financial crisis. Testing data from a large sample of private firms (N=3,459) by difference-indifferences analysis, we find that firms with industrial diversification, geographic expansion and political connections perform better during the crisis than those without. These results are less affected by self-selection problems (as the abrupt crisis provides a natural experiment) and hold up against endogeneity and several other challenges in robustness tests. The findings offer important implications for researchers, business owners, policy makers and future research.     

“Marketing Managers” in the Context of Global Supply Chains: Functional Versus Multiple IQ Competencies

Managerial scholars have suggested that “g” score (i.e., intelligence) tests are not enough to assess and select the appropriate candidates for some jobs. Other dimensions can play just as important a role in employee performance. Thus, the purpose of this article is to expand our view in terms of criteria that may be used as it relates to global supply chain managers. We present a nine-base typology to assist researchers and managers in assessing the true dynamics of global supply chain manager intelligence. The typology of intelligence includes the dimensions of cognitive, social, political, emotional, structural, intuition, experiential, creative, and network. We build our model by using intelligence dimensions from management, industrial organizational psychology, marketing and organizational behavior, and perspectives that include relational contracting norms, relationship marketing, networking, and communications. We propose that global supply chain managers need all nine bases to perform well in the global business arena.     

The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator?

Prior studies have defined high-growth firms (HGFs) in terms of growth in firm employment or firm sales, and primarily analyzed their contribution to overall employment growth. In this paper we define HGFs using the commonly applied growth indicators (employment and sales), but also add definitions based on growth in value added and productivity. Our results indicate that HGFs in terms of employment are not the same firms as HGFs in terms of productivity, and that their economic contributions differ significantly. Economic policy promoting fast growth in employment may therefore come at the cost of reduced productivity growth. Although HGFs of different definitions may not be the same firms, young firms are more likely to be HGFs irrespective of definition. This suggests that economic policy should focus on the conditions for new firm formation and early growth of firms, rather than target a particular type of HGFs.     

Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? <Emphasis Type=Italic>Clarifications,Exceptions and Implications</Emphasis>

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts global firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This article seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm–supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The article highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains.     

Corporate Social Responsibility in Global Value Chains: Where Are We Now and Where Are We Going?

We outline the drivers, main features, and conceptual underpinnings of the compliance paradigm. We then use a similar structure to investigate the drivers, main features, and conceptual underpinnings of the cooperative paradigm for working with CSR in global value chains. We argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers’ conditions in developing country export industries. After that, we provide a critical appraisal of the potential and limits of the cooperative paradigm, we summarize our findings, and we outline avenues for research: purchasing practices and labor standard noncompliance, CSR capacity building among local suppliers, and improved CSR monitoring by local resources in the developing world.     

Punishing Vices or Rewarding Virtues? The Motivations for and Benefits of Ethical Ratings for Private Italian Companies

Journal of Business Ethics - In A Treatise on Virtues and Rewards, Dragonetti (1769) advances a theory of action based on rewards for virtues. The idea of rewards, especially of awards, relies on...     

The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?

This paper describes the United States recently enacted Africa Growth and Opportunity Act (AGOA) and assesses its quantitative impact on African exports. The AGOA expands the scope of preferential access of Africa's exports to the United States in key areas such as clothing. However, its medium‐term benefits – estimated at about US$100‐$140 million, an 8−11 per cent addition to current non‐oil exports – would have been nearly five times greater (US$540 million) if no restrictive conditions had been imposed on the terms of market access. The most important of these conditions are the rules of origin with which African exporters of clothing must comply to benefit from duty‐free access.     

The Concept of “Free Agency” in Monotheistic Religions: Implications for Global Business

The current debate on “free agency” seems to highlight the romantic aspects of free agent and considers it a genuine response to changing economic conditions (e.g., high-unemployment rate, importance of knowledge in the labor market, the eclipse of organizational loyalty, and self pride). Little attention, if any, has been given to the religious root of the free agency concept and its persistent existence across history. In this paper, the current discourse on free agency and the conditions that have led to its emergence are briefly discussed. The paper focuses on the theological perspectives of Judaism, Christianity, and Islam on the concept. Implications for management and business organizations are provided.     

Assessing the Impact of Public–Private Partnerships in the Global South: The Case of the Kasur Tanneries Pollution Control Project

This paper makes a contribution to ongoing debates about whether and how we can empirically assess the potential, limitations, and actual impacts of public–private partnerships (PPPs) in developing countries. Several United Nations and bilateral aid agencies have called for the development of impact assessment (IA) methodologies that can help clarify when, how, where, and for whom partnerships work. This paper scrutinizes some of the key assumptions underlying this debate, arguing that no objective ‹truth’ about the effects of PPPs can be discovered through the use of such methodologies. The paper then investigates what can actually be known about a PPP’s effects by testing a PPP IA framework that is recommended by the Organization for Economic Cooperation and Development. This is done using a case study from Pakistan. The paper shows that IA methodology may provide an indication of how well a PPP has fared, but not why the PPP has turned out the way it has. At the same time, win–win and win–lose outcomes may exist simultaneously, even for the same stakeholder in the PPP. While the importance of ensuring proper design, monitoring, and IA of PPPs cannot be denied, their effects must be seen as an outcome of struggles between a␣variety of actors over the distribution of social and environmental hazards associated with broader processes of economic development and industrialization.     

Nanotechnology and Ethics: The Role of Regulation Versus Self-Commitment in Shaping Researchers’ Behavior

The governance of nanotechnology seeks to limit its risks, without constraining opportunities. The literature on the effectiveness of approaches to governance has neglected approaches that impact directly on the behavior of a researcher. We analyze the effectiveness of legal regulations versus regulation via self-commitment. Then, we refine this model by analyzing competition and autonomy as key contingency factors. In the first step, qualitative interviews with nanotechnology researchers are conducted to reflect this model. In the second step, its empirical relevance is tested using a survey of 90 nanotech researchers. The results indicate that legal regulations, as well as self-commitment to an informal CoC reduce the scope of behavior. Finally, that competition and autonomy affect the relative strength of these governance factors.     

Assessing the Impact of Public–Private Partnerships in the Global South: The Case of the Kasur Tanneries Pollution Control Project

This paper explores the nature of the relationship between corporate social responsibility (CSR) and competitiveness. We start with the commonly held view that firm competitiveness is defined by the market. That is, the question of what are the critical competitiveness factors is answered by looking at how companies and financial analysts describe and evaluate a firm. To analyze this, we review the current state of the art on the relationship between CSR and competitiveness. Second, CSR criteria used by financial analysts is identified and compared with company valuation methods. Third, the results of a multi-stakeholder dialogue on CSR and competitiveness of the European financial sector are presented. As a conclusion, we argue that CSR and competitiveness relate through a learning and innovation cycle, where corporate values, policies and practices are permanently defined and re-defined. Thus, we propose that learning takes place as CSR is embedded in business processes, and that once it has been integrated, in turn, it generates innovative practices, and finally, competitiveness. At the end of the paper, we propose that CSR in practice consists of managing inherent paradoxes generated by the tension between CSR and business policies.     

The Regulation of Retail Investment Services in the EU: Towards the Improvement of Investor Rights?

Despite the fact that a substantial body of European Community (EC) law already exists to protect retail investors, the markets in retail investment services and products in the EU remain fragmented. Moreover, the recent financial crisis has undermined investor confidence in financial markets more generally, and “packaged” retail investment products (PRIP), such as investment funds or life insurance policies, in particular. To rebuild retail investor confidence in PRIP by empowering retail investors to make active use of their rights, in 2009 the European Commission proposed to extend the provisions of the 2004 Markets in Financial Instruments Directive (MiFID) to PRIP. Is the MiFID, however, fit for the purpose which the Commission has in mind? This contribution explores to what extent the MiFID actually confers rights on retail investors and empowers them to make use of these rights. The author concludes that investor rights and remedies should be taken more seriously when making European financial services law. The current overhaul of the EC legal framework for the provision of investment services provides a good opportunity to do so.     

Clustering Biotech: A Recipe for Success? Spatial Patterns of Growth of Biotechnology in Munich,Rhineland and Hamburg

The dynamic growth of biotechnology in Germany in recent years has an obviously spatial pattern. Some regions show a substantial potential for start-ups and young firms of this new industry whereas others lag behind. The paper is discussing this unequal spatial development elaborating perspectives which derive from recent debates about regional innovation systems. The biotech regions Munich and Rhineland, both winner regions of the BioRegio Competition are described and compared with the situation in Hamburg where biotechnology is much less important. We analyze the degree and relevance of locally integrated input-output relations of innovation systems based on typologies of the wide range of firms within the biotechnological value chain and the forms of co-operation. Moreover, a qualitative estimate is given with respect to the significance of untraded relationships and regional knowledge spillovers. Factors favoring local integration are compared with those favoring input-output systems on a transatlantic scale. The paper discusses the question whether the biotech industries in the regions of Munich, Rhineland and Hamburg represent identifiable regional systems of innovation.Our findings show that the spatial concentration does not necessarily imply a close network of input-output relations within a cluster. Knowledge and technology transfer often happens on a international, mostly on the North Atlantic scale. The exchange of tacit knowledge, however, is facilitated by spatial proximity. This underlines the importance of untraded relations and "relational assets" in a region. Political and institutional support for building a "business community" can reduce barriers to launch risky commercialization processes.     

COVID-19 and retail: The catalyst for e-commerce in Belgium?

Since the turn of the century especially small, local retailers struggle with the advent of e-commerce. It is hence no surprise that the retail sector is one of the hardest-hit sectors in the current pandemic. To understand the short- and longer-term impacts of COVID-19 on retail, we conducted two surveys to understand ongoing changes in the sector. By contrasting changing consumer behavior with the actions taken by local retailers, we assess whether the current pandemic is potentially a catalyst for e-commerce in Belgium. We do this based on a newly constructed framework of e-retail accessibility, as the differences between online and physical retail require a revision of the traditional economic geographical perspective on retail performance as introduced by Christaller (1933). We conclude that the COVID-19 pandemic holds ample opportunities for an increase in the three components of e-retail accessibility, but that a lack of professionalism might prevent traditional local retailers to retain a share of the expanded online market. This could well mean the final blow for local brick and mortar shops if, as is predicted, the share of online shopping in total retail expenditure remains high after the pandemic.     

The Role of Academic Research in Supply Chain Practice: How Much Are We Contributing?

Supply chain academics and practitioners enjoy a unique bond. The applied heritage of logistics and supply chain scholarship motivates researchers to identify problems residing in current and future practice, address them in a conscientious manner, and to provide findings that yield meaningful insights. Yet, this bond is sometimes strained when scholarship loses touch with “real problems” found in industry. Strains in the bond then limit the contribution potential and impact of resultant work. This editorial calls for supply chain researchers to embrace the discipline's applied heritage in the identification of problems and delivery of results, while employing the requisite rigor for valid conclusions. Fortunately, there has never been a better time to work with practitioners in light of the disruptive forces at work in industry and the thirst for meaningful insights.     

Evaluating Strategies for Negotiating Workers’ Rights in Transnational Corporations: The Effects of Codes of Conduct and Global Agreements on Workplace Democracy

Following the offshoring of production to developing countries by transnational corporations (TNCs), unions and non-governmental organisations (NGOs) have criticised working conditions at TNCs’ offshore factories. This has led to the emergence of two different approaches to operationalising TNC responsibilities for workers’ rights in developing countries: codes of conduct and global agreements. Despite the importance of this development, few studies have systematically compared the effects of these two different ways of dealing with workers’ rights. This article addresses this gap by analysing how codes of conduct and global agreements both independently and interactively affect workers’ rights. We do this based on a qualitative study of the Sri Lankan operations of a Swedish TNC in Sri?Lanka, and on interviews with union and NGO representatives actively involved in codes of conduct and global agreements. Our results indicate that global agreements independently address all the aspects included in codes of conduct, while also addressing additional, more process-oriented aspects of workers’ rights. Hence, on their own, global agreements seem to comprise the superior approach to promoting workers’ rights. Furthermore, our results indicate that promoting codes of conduct has negative interactive effects on global agreements. Based on these results, we argue that the current focus on codes of conduct is counterproductive for the promotion of workers’ rights.     

The Impact of Export Promotion Programs on Firms’ Export Competencies and Performance in a Transition Economy: The Case of Russian Manufacturers

Abstract

This study evaluates the effects of export promotion programs (EPPs) in Russian manufacturers. It examines a multi-dimensional set of subjective and objective indicators including the level of awareness, use, the perception of usefulness, as well as different intermediate export marketing results, and final performance indicators. The results show that most EPPs are successful in attaining their goals as to improving firms’ export marketing competencies. Though, at the same time, they point to clear problems, regarding program awareness, availability, and accessibility. The paper concludes with a discussion about managerial and public policy implications.