A Cosmopolitan Court for Transnational Corporate Wrongdoing: Why Its Time Has Come

In the absence of any institution for imposing legal liability on global business, the idea of instituting a cosmopolitan court for international corporate offenses is advocated. The proposal is then critically examined and defended in light of a number of key objections. Having both civil and criminal jurisdiction, such a tribunal could benefit domestic and international legal systems, multinational corporations, and victims of transnational and international corporate misdeeds. By laying down minimal global standards of corporate liability, resolving conflicts between the regulatory activities of national legal systems, and affording redress for aggrieved parties in countries with inadequate legal infrastructures, the tribunal would promote the objectives of compensatory, distributive, procedural and retributive justice at the global level. Moreover, the court would assist corporations by translating compliance with minimum ethical standards to the bottom line. Ethical corporations will gain competitive advantage relative to unscrupulous firms, since the latter'ss activities will be sanctioned. The international community need not leave obedience to basic norms up to the voluntary good-will and discretion of multinational firms.     

Making international marketing decisions under WTO rules

With the conclusion of the Uruguay Round and the establishment of the World Trade Organization (WTO) in April 1994, a comprehensive set of rules emerged that affect in a pervasive manner the activities of firms on foreign markets. This body of rules is overwhelmingly presented in the literature from a trade policy or legal viewpoint. The result is that, for many marketers, WTO rules are somewhat confusing, and their impact on international business operation is difficult to assess. This paper is purely analytical and does not aim to provide any contribution to international marketing theory. Its purpose is to identify which rules, among the many the WTO system encompasses, are of direct concern to firms. It aims to expose in a straightforward manner how they may be coped with or taken advantage of by international marketers. It focuses on WTO measures, which deal with so‐called international marketing mix decisions, namely decisions pertaining to (1) entry and international distribution, (2) product and service, (3) pricing, and (4) international communication. Commitments made during the WTO Fourth Ministerial Conference in Doha (November 9–14, 2001) that are relevant to issues raised in this paper are accounted for. © 2003 Wiley Periodicals, Inc.     

Entrepreneurship and Illegality: Insights from the Nigerian cross-border Trade

Illegal business activity is common throughout the world, occurs in a diversity of forms, and is often viewed as the darker side of entrepreneurship. Of particular interest is illegal cross-border trade, which occurs at low levels between developed countries, but is often widespread between developing countries. It is on the increase, despite many attempts by governments to eradicate it. Yet illegal trading is poorly studied both theoretically and empirically from an entrepreneurial perspective. The paper outlines a working model exploring the relationships between key entrepreneurial factors and illegal trading, and explores the model using fieldwork data collected by the first author in Nigeria during an 8-month ethnographic study of cross-border trading. The Nigerian cross-border trade is particularly interesting, as it takes place in an environment of long-standing illegality and corruption. The findings reveal that illegal practices are so widespread that they are a norm, an almost parallel economy with its own traditions and values. In this context, entrepreneurial advantage in trading illegally is quite different from that which would be expected in more familiar Western contexts. The entrepreneurial advantages of trading in illegal goods and evading duties appear overwhelming at first, as bribery of officials is widely accepted, which reduces risk of law enforcement to negligible levels, and most traders do not view illegal trading as immoral. Closer analysis reveals, however, that traders need to bribe to trade any goods, legal as well as illegal. Bribery is part of a system of harassment by officials that pervades all aspects of the trade. In this climate, there are no special advantages in targeting illegal goods to trade in. The distinction between what is legal and illegal becomes blurred and irrelevant. Traders target any goods irrespective of their legal status if potential profit margins are high. Entrepreneurial advantage thus lies in the trade itself and making it work, not in its illegality. Most entrepreneurial energy is devoted to creatively circumvent the harassment of corrupt officials, not to exploit illegal business opportunities. The paper concludes by demonstrating that certain factors are crucial to our understanding of the relationship between entrepreneurship and illegal trading, in both Western and Nigerian contexts, but that the relationships between the factors differ widely in the two contexts. The model constructed provides a basis for further comparative research in other regional contexts. In terms of policy implications, the illegality of the trade is of some benefit in that it has created hundreds of associated jobs and businesses, which enable traders to operate more securely and efficiently in the climate of corruption, harassment, and uncertainty. Most traders, however, have learnt to profitably live with illegality, but nonetheless, would still prefer to trade in a less stressful and impartial legal system. Illegality on balance is more harmful than beneficial for economic development. Removing illegality once institutionalised, however, is not a simple matter and no solution can be found without fuller understanding of the sociology and the entrepreneurial processes of illegal trading.     

The Foreign Corrupt Practices Act's Consquences for U.S. Trade: The Nigerian Example

A by-product of the Watergate investigations into illegal political contributions and money-laundering was the revelation that American corporations had been making questionable payments to foreign officials to gain business advantages. That discovery was the driving force behind passage of the FCPA in 1977. Many since have complained that the law put American firms at a disadvantage in international trade. This paper assesses the credibility of that claim, as well as exploring the socioeconomic implications of corruption in a world of intensifying international competition. Based on the literature review, examination of international trade data and intensive interviews with foreign firms doing business in Nigeria, the paper reaches the following conclusions:1. Enforcement of FCPA has waxed and waned, but there is no evidence that its enforcement has impeded the growth of U.S. trade. In fact, trade with countries previously considered "bribe prone" has out-paced the growth of trade with non-bribe-prone countries, despite FCPA.2. Those American corporations which, in the past, were guilty of international bribery did so as a short-cut when adherence to time-honored ethics could have accomplished the same or better results.3. The "Storehouse of Knowledge" maintained by successful firms has been far more influential in promoting exports than any questionable payments they might be tempted to make.4. In most of the questionable payments investigated, American corporations had indulged in bribery to gain a competitive edge over other U.S. firms rather than foreign ones.5. Whatever the result, international bribery is inherently wrong for the same reason that domestic bribery is wrong.Despite criticism of it, FCPA has benefitted honest U.S. firms by reducing unfair competition among other American firms which comprise about 80 percent of the world's true multinationals. For multinationals to function in anything other than a transparent manner would be to impede the spread of democratic governments and market economies worldwide.     

Business under adverse home country institutions: The case of international sanctions against Myanmar

We expand the institutional perspective of international business by exploring the range of institutions outside the host country that influence international business. We use a critical case, Myanmar, to explore the dynamics of institutional constraints and the reaction of business to such constraints. Our in-depth case analysis focuses on four industries for the period 1996–2011. On this basis, we develop the concept of ‘low profile strategy’ and propose a conceptual framework of home country pressures influencing multinational enterprises’ international operation, and the variation of their impact across industries and firms. This framework provides a foundation for future work on the extra-territorial effects of institutions in international business.     

Advanced technologies and international business: A multidisciplinary analysis of the literature

Advanced digital technologies, such as the Internet of Things, blockchain, big data analytics and augmented reality, are gradually transforming the way multinational firms do business. Due to the extent of this transformation many scholars argue that the integration of these technologies marks the commencement of the fourth industrial revolution (Industry 4.0). However, the question how these advanced technologies impact international business activities needs further attention. To this end, we adopt a multidisciplinary approach to review the related literature in international business (IB), general management, information systems, and operations research. We include the two latter fields, because advanced technologies have received more attention in these bodies of literature. Based on our analysis, we discuss the implications of these technologies for international business. Further, we highlight the drivers of technology utilisation by multinational firms and likely outcomes. We also provide future research avenues.     

International Bribery: Does a Written Code of Ethics Make a Difference in Perceptions of Business Professionals

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the respondents’ firms had a written code of ethics, and to what extent the respondents’ firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development.     

Contextual analysis of legal systems and their impact on trade and foreign direct investment

Differences among nations in legal tradition play a role in foreign direct investment decisions by multinational firms. How large a role and to what degree these factors impact the success of foreign direct investment are important issues for examination. A principal question is whether macro-differences in legal systems are causal for international investment on a stand-alone basis or subordinate to multiple other legal variations and societal considerations. This article examines the historical roots and nature of varying legal systems, traditions, and cultures that continue to affect international business. The study analyzes other major conditions which surround the legal environment in investment target countries such as system transparency, degree of corruption, adequate enforcement, and issues of bias related to foreign-owned firms. In addition, firms may have varying strategic objectives for foreign direct investment which may not be driven by short term profitability.     

我国出口企业重要技能的识别及其排序

根据对我国东部经贸发达地区的800家外贸企业所进行的问卷调查,采用主成分分析法识别出8大类共56项重要出口技能,8大类技能包括国际金融、国际营销、国际贸易政策与规则、国际贸易物流、国际结算、国际贸易战略管理、国际贸易调研和国际贸易实务;通过计算均值和标准差,对88项出口技能按重要性进行了排序。实证研究发现,我国外贸企业认为对于成功出口最重要的技能是国际贸易政策与规则、国际结算和国际贸易调研类技能。总体上,我国外贸企业更重视基本的金融技能和战略管理技能;对于国际营销技能重要项目的整总体评价一般甚至有些偏低;同其他国家企业的情况相比,我国外贸企业对国际贸易物流和国际贸易实务技能的重视程度相对较低。     

International entrepreneurial marketing strategies of MNCs: Bricolage as practiced by marketing managers

The extant research lacks information on entrepreneurial marketing in large international firms. This study explores the international entrepreneurial marketing strategies of multinational corporations (MNCs), and its results reveal that MNC marketing managers use bricolage to develop international entrepreneurial marketing. A novel finding of the study is that the international entrepreneurial marketing strategies of MNCs include co-innovation, accelerating customer value, and international expansion based on regional market leadership. Marketing managers use both parallel and selective bricolage in their international entrepreneurial marketing. Environmental uncertainty and entrepreneurship culture are important drivers of the implementation of bricolage to develop international entrepreneurial marketing. The research findings can inform MNC management of the options available to utilize corporate venturing to facilitate bricolage and in turn to realize international entrepreneurial marketing strategies.     

The International Entrepreneurial Decision of UK SMEs to Discontinue Overseas Activities: A Research Note Reporting Practices Within the Clothing Industry Eighteen Months on

Findings from a follow-up study to an investigation concerning reasons why a sample of firms discontinued export activities and perceptions towards assistance that may motivate them to recommence overseas activities in the future are discussed in this article. A longitudinal, qualitative perspective is provided that contributes to knowledge at the international marketing/entrepreneurship interface by reporting on their business activities 18 months after the initial study was undertaken. Analysis establishes that differences exist between two groups of firms that had indicated in the original study that their discontinuation of exporting was a short-term measure compared with those that viewed the decision as longer term. Recommendations for policy makers in the provision of trade assistance programmes are offered as a result of the study.     

An empirical investigation of international marketing ethics: Problems encountered by Australian firms

This study identifies and categorises ethical problems in terms of frequency of occurrence and importance to a sample of Australian international business managers. The study determined that the most frequently cited ethical problem is gifts/favours/entertainment and that this problem may be related to the culture where the international business is being conducted. The most important ethical problem is large-scale bribery. When the frequency of occurrence and importance means are compared in a scatter plot, cultural differences, pricing practices and questionable commissions were catagorised in the high frequency/high importance quadrant. The Australian general managers stated that managerial action will be taken to control unethical behavior among their international marketing managers. It was conjectured that managers were not as firm in their attitudes concerning the necessity to compromise one's ethics to succeed in international business.Dr. Robert Armstrong is a Senior Lecturer in Marketing at Murdoch University. He has concentrated his research activities toward international and service marketing. He has published several papers in both subject areas. Currently, he is studying: International Marketing Ethics in the Asia-Pacific region. The long-range study seeks to make cross-cultural comparisons of Southeast Asian and Australian business executives perceptions of the international marketing environments. He is also doing research for an international marketing text for Australia and Southeast Asia.I would like to thank Jane Seman for her assistance in the collection of data and references for this study. I would also like to thank the reviewer(s) for insightful recommendations and suggestions on the draft of the article.     

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

This paper asks the pragmatic question of how and to what extent firms build subsidiary competitiveness over time. By merging international business and international marketing theory, we integrate the unconnected discourses on market entry, development, product sequencing, and diffusion. The context of our research questions is marketing and entry strategies of four Japanese firms in India. All have had to learn the sequencing of both entry and product diversification. While strategies vary between the firms, the cases exhibit that entry and product diversification decisions are interlinked. Market entry configurations are central for developing market‐led solutions in large emerging markets. This study offers insights into how Japanese MNEs build subsidiary competitiveness when faced with the early stages of the Indian consumer market take‐off. Second, through the integration of international business and international marketing theory, we find that new product performance and international diversification interact in specific ways, and this contributes to future theoretical developments. © 2015 Wiley Periodicals, Inc.     

The strategies of small and large international specialists

Falling trade barriers and corporate restructuring are resulting in the creation of international specialists, firms that focus on one line of business but with an international scope. International specialists compose the growing middle ground between diversified multinational companies and local firms. This study of 41 firms identifies two types—large and small international specialists—that differ substantially in their governance structures, resources, functional strategy, and approach to international markets.Large international specialists have abundant resources and high growth expectations, make a concerted push to dominate worldwide markets, and increase their reach over multiple stages of their industry. Small international specialists do not have strong growth motivations. They are upstream players that outsource extensively, serve intermediate users, and enter international markets selectively in ways that conserve their limited resources.Managers should consider the strategic option of becoming an international specialist in addition to the known strategic alternatives of being a domestic or a diversified multinational firm. To become international specialists, strategists need to implement several, consistent actions across functions that reinforce one another.     

The Effect of Flexibility on Export Venture Performance

Abstract

Although both international marketing theorists and practitioners have been expounding the importance of flexibility little or no research has been done to examine the effect of flexibility on export venture performance. Most of the research to date was directed towards examining the effect of flexibility on performance in the domestic context. Moreover, the studies in the literature also gave exclusive attention to the performance-enhancing effect of flexibility and ignored the moderating effects of organisational and environmental contingencies on the flexibility-performance relationship. This paper will present the results of a study that assessed the effect of flexibility on export performance.

The findings support the proposition that flexibility is significantly related to export performance but that environmental dynamism, legal forms of business ownership, international experience, control mechanism, and exporter-distributor cooperation have a moderating effect on the relationships between flexibility and export venture performance. The study also found that firms that were challenged by intense competitive rivalries, spent a lot of time and effort on monitoring foreign marketing activities, and had substantial cooperation with overseas distributors were more flexible in their manufacturing, marketing, financial, and organizational activities.     

Characterising Euro Area Multinationals

This study uses firm‐level data on a large sample of European manufacturing firms to investigate the links between opening up foreign affiliates and firms’ productivity. The analysis is guided by recent theoretical models of international trade with firm heterogeneity. The paper finds that while only a small share of euro area firms locate affiliates abroad, these firms account for over‐proportionally large shares of output, employment and profits in their home countries. They have higher survival rates and their productivity growth is also higher. The strongest contribution is by productivity growth of existing firms with a multinational status rather than entry into the multinational status. Finally, there are performance premia for multinationals with a large number of affiliates abroad relative to those with a small number.     

Multinational Enterprises and Foreign Direct Investment: Introduction

This study uses firm‐level data on a large sample of European manufacturing firms to investigate the links between opening up foreign affiliates and firms’ productivity. The analysis is guided by recent theoretical models of international trade with firm heterogeneity. The paper finds that while only a small share of euro area firms locate affiliates abroad, these firms account for over‐proportionally large shares of output, employment and profits in their home countries. They have higher survival rates and their productivity growth is also higher. The strongest contribution is by productivity growth of existing firms with a multinational status rather than entry into the multinational status. finally, there are performance premia for multinationals with a large number of affiliates abroad relative to those with a small number.     

Designing an International Marketing Research Course

Given the ever increasing importance of international marketing research, business schools wishing to emphasize the international dimension should offer a course-on this topic. Such a course should discuss the environment in which international marketine research is conducted. Attention should be focused on the mark&ng environment, government environment, legal environment, economic environment, structural environment, informational and technological environment, and sociocultural environment. The course should also cover a discussion of how the six steps of the marketing research Drocess. namelv. Problem Definition. Develo~ine an ~ p ~ r g a c h , ~esearch ~ e s i p ~&ulation, Field ~&k/Data koE lection, Data Pre~aration and Analysis, and Re~ort Pre~aration and Presentation, shobld be implementkd in an int&nation& setting. A framework for the design of an international marketing research course is presented and the course content is discussed.     

Bribery in International Business Transactions

Globalization leads to cross-border business transactions between societies with very different norms and regulations regarding bribery. Bribery in international business transactions can be seen as a function of not only the demand for such bribes in different countries, but the supply, or willingness to provide bribes by multinational firms and their representatives. This study addresses the propensity of firms from 30 different countries to engage in international bribery. The study incorporates both domestic (economic development, culture, and domestic corruption in the supplying country) and international factors (those countries’ patterns of trade and involvement in international accords) in explaining the willingness to bribe abroad. The propensity to provide bribes was the lowest when corruption was not tolerated in the multinational firms’ home countries, when the firms’ countries were signatories of the Organization for Economic Cooperation and Development (OECD) anti-bribery convention, and when those countries traded heavily with wealthier nations. Further, these findings are maintained when controlling for levels of economic development and cultural values in the supplying country. In terms of culture, firms from high power distance countries showed a somewhat greater propensity for providing bribes in transactions with less-developed nations.     

Market entry into Africa: Acquisitions and international joint ventures. Studies of foreign firms' market entry strategies,challenges, and performance in Africa

While the interest in investing in Africa is rising, the know‐how of business on the continent is very limited. There have been only recently few special issues focusing on sub‐Saharan Africa in the top international business journals: “Sub‐Saharan Africa at a key inflection point” (Thunderbird International Business Review 2009); “Contemporary developments in the management of human resources in Africa” (Journal of World Business 2011); “Contemporary challenges and opportunities of doing business in Africa” (Journal of Technological Forecasting and Social Change 2016); “Critical perspectives on international business in Africa (Critical Perspectives on International Business 2016); “Strategic Management in Africa (Global Strategy Journal, 2017); and “The internationalization of African firms (Thunderbird International Business Review 2016). The aim of this special issue is to advance understanding of international business in Africa and specifically focus on how foreign firms enter African markets via acquisitions and international joint ventures and extend knowledge of these market entry strategies and performance in Africa for research and for foreign firms intending to, or currently doing business in Africa. This guest editorial provides a summary of the five articles and one book review in this special issue categorized into three broad thematic issues: International joint ventures and acquisitions as market entry strategies in Africa; cross‐border investments of African firms; and theoretical underpinnings.