Enterprise Resource Planning Systems Implementation in a Global Subsidiary Organization: Lessons Learned

This article describes the implementation of an enterprise resource planning (ERP) implemented by British Petroleum (BP) Worldwide, from the perspective of one of its subsidiary organizations, BP Singapore. The ERP solution, an internally developed system, was implemented globally by BP worldwide quite successfully from a global perspective, though not without challenges at the local level. This study examines the process of implementing a global ERP solution at the local subsidiaries, and the unique problems that may be encountered in force-fitting a global solution at the local level. Among the issues and problems experienced by the subsidiary are higher-than-anticipated costs, longer development times, lack of technical expertise, and compromises in business processes. The findings of the study could be helpful in formulating coping mechanisms in implementing global ERP solutions.     

Learning from Older Siblings: Impact On Subsidiary Performance

Newer subsidiaries of a multinational enterprise (MNE) in a foreign (host) country will rarely possess the knowledge required for its performance. As such, a newer subsidiary will learn vicariously from the experiences of older subsidiaries of similar industries and the same MNE operating in the same host country. In particular, the newer subsidiary will learn two types of knowledge from older subsidiaries, namely, operational knowledge related to their experiences in the host country and their knowledge about local markets. Furthermore, we theorize that higher parent MNE ownership in newer subsidiaries will facilitate vicarious learning. We add that as newer subsidiaries gain experience, they become less dependent on vicarious learning from older subsidiaries. We find support for our hypotheses using a longitudinal sample of MNE subsidiaries in India. We conclude with implications for future research.     

Subsidiary goals,learning orientations,and ownership strategies of multinational enterprises: evidence from foreign direct investments in Korea

This paper investigates the links among subsidiary goals, learning orientations, and ownership strategies of multinational enterprises (MNEs). The authors hypothesize that an MNE's ownership strategy is determined by subsidiary goals and learning orientations. Furthermore, interactions between learning orientations and subsidiary goals are predicted to influence the ownership strategy. Based on 723 foreign subsidiaries of MNEs operating in Korea, our findings suggest that when MNE foreign subsidiaries influence ownership choice, market-seeking goals and resource-seeking goals have a stronger fit with the exploitation orientation than with the exploration orientation. In contrast, the category of knowledge-seeking goals has a stronger fit with exploration than with exploitation.     

A Fuzzy Set Analysis of Foreign-Owned Subsidiary Performance: Insights from East Asia

The purpose of this study is to investigate the multiple conditions that affect performance in foreign-owned subsidiaries. This research is based on a survey of foreign-owned subsidiaries located in the midrange emerging economy of Taiwan. The resulting data set consists of 226 subsidiary managers’ responses. Using configurational theory to guide our argumentations, the author shows that three different paths lead to higher performance, hence, indicating equifinality. Overall, results show that only subsidiary competences are a core condition for high performance. Networks, autonomy, market orientation, industry, and relatedness are only peripheral.     

Subsidiary Technology Upgrading and International Technology Transfer,with Reference to China

This paper reviews the research on technology upgrading in the subsidiaries of transnational corporations and the research on the development of Chinese high technology firms. On the basis of this it develops fresh policy options for government intent upon facilitating international technology transfer to their jurisdictions. Technology upgrading is the use of increasingly complex technologies in products and processes, and the development of the managerial and organizational capabilities needed to leverage those technologies effectively. Technology upgrading by the subsidiaries of transnational corporations can contribute to the economic development of the host region and is often driven by the entrepreneurial activities of subsidiary management. The upgrading process involves collaborating/lobbying with suppliers, headquarters and sister subsidiaries. Economic development policy should foster subsidiary technology upgrading as part of initiatives to increase international technology transfer.     

A Global Analysis of Orientation,Coordination, and Flexibility in Supply Chains

Global supply chains are growing rapidly, and the ability to manage cross border logistics operations has become a necessity to maintain a competitive advantage in a dynamic environment. This research addresses current gaps in the literature by investigating the buyer–supplier integration dynamics in a global context with a focus on the antecedents and outcomes involved in the process. Empirical data from 320 U.S. based manufacturing companies that source from overseas was collected and used to test the framework. In addition to providing empirical evidence for the importance of orientation on collaboration, operational coordination, and integration this research explains how manufacturing companies can enhance the flexibility of their global suppliers and how that impact their logistics as well as overall firm performance. Managerial and research implications are provided as well as areas for future research.     

The Earth Is Flat,Almost: Measuring Marketing Standardization and Profit Performance of Japanese and U.S. Firms

ABSTRACT

Globalization has fostered greater interest in all aspects of standardization theory, including the four Ps (product, price, place [distribution], and promotion) of the marketing mix. The study researches the firm's strategy of marketing standardization as it correlates to the firm's profit. Multinational firms from Japan and the United States operating in a global environment were studied in order to correlate marketing standardization to profit performance. The results indicate there is increasing support for a strategy of standardizing marketing mix components and contributing to a firm's profit performance.     

我国保险公司偿付能力监管与法规协调

近几年来,虽然我国偿付能力监管法规体系不断完善,但是依然存在偿付能力监管法规的协调性以及法规与实际操作的协调性问题,这就造成了监管实践中法律适用困惑以及监管执行不力的现象。因此,如何解决监管法规之间的协调性,以维护保险监管的权威性和有效性是一个值得探讨的问题。     

Learning from Project Failure: Globalization Lessons for an MNC

We study a multinational corporation's (MNC) failure in implementing a firm‐wide information technology system (ITS) project. To counter heightened competitive pressures, the MNC sought to improve its supply chain responsiveness by implementing the ITS project. However, since the headquarters (HQ) personnel lacked nuanced understanding of the micro issues in the subsidiaries, their design efforts turned out to be inadequate. Organizational practices that restrict member behavior to recipes from past knowledge served to amplify the problem—by disfavoring cooperation. Our study suggests a need to rethink the notion of the HQ as the design place. Further, there is a case for subsidiary personnel being afforded a greater say in design of changes to their work processes, given their higher exposure to process variety. This may offset the HQ‐subsidiary power imbalance noted in prior literature. © 2015 Wiley Periodicals, Inc.     

Multinational Subsidiary Evolution and Public Policy: Two Tales from the European Periphery

The paper explores the link between subsidiary evolution and public policy towards multinational enterprises (MNEs). The cases of two peripheral EU economies (Portugal and Ireland) are contrasted, both in terms of their inward investment policy stances and as regards differential evolutionary processes at subsidiary level unveiled by empirical results from a new survey of subsidiaries operating in those two host countries. After examining issues such as motivations underlying investment, subsidiaries roles/strategies and evolution (addressing distinct paths in subsidiary transition), the paper discusses the potential contribution of subsidiaries to host country development and what constitutes an appropriate policy towards multinationals. Explicit consideration is given to subsidiaries value-added scope and the density and quality of local linkages as key determinants of host country impact.     

Local Responsiveness Pressure, Subsidiary Resources, Green Management Adoption and Subsidiary’s Performance: Evidence from Taiwanese Manufactures

This study aims to explore if local responsiveness pressure and subsidiary resources influence green management adoption of overseas subsidiaries, and to investigate the relationships between the level of green management adoption and performance. The 101 effective samples were collected from 583 Taiwanese firms, which are listed in the top 1000 manufactory firms and have invested in China. Through structural equation model (SEM) analysis’ empirical results indicate that local responsiveness pressure and subsidiary resources both have positive effects on the level of green management adoption of the subsidiary. This study also suggests that the level of green management adoption is positively related to the subsidiary’s performance. Peng, Yu-Shu is an Associate Professor in the Department of International Business in the School of Management, National Dong Hwa University in Taiwan, R.O.C. He has published in the areas of the international business, strategic management, and business ethics. He received his Ph.D. in Business Administration from the National Chengchi University in Taiwan, R.O.C. Lin, Shing-Shiuan is a graduate student in the Department of International Business in the School of Management, National Dong Hwa University in Taiwan, R.O.C. Her research topics focus on environmental management.     

全球化视角下的中欧贸易争端及其博弈分析——以纺织品为例

欧盟已经并将继续成为对华贸易摩擦的首要发起国,中欧双方在贸易争端中考虑的第一影响变量就是经济全球化。全球化使贸易争端具有了不可避免性和可协调性,并为其提供了动态变化机制,进而使其成为一场欧盟占主动的完全信息动态博弈。近期的纺织品贸易磨擦就是一个明证,我国在博弈中只能也必须积极应对,并力争促成由被动向主动地位的转变,即我国在短期内要尽快建立成熟的争端应对机制,长期则要逐步促成比较优势的全球实现和动态升级。     

Innovativeness,offshoring and black economy decisions. Evidence from Italian manufacturing firms

Following recent models in international trade this paper examines the characteristics that businesses should possess to pursue internationalization strategies. We do this in the peculiar context of Italy, the G-7 country with the largest share of the black economy in GDP. Specifically, we posit that Italian manufacturing firms may use three strategies to counter the competitive threats by emerging economies: (i) improve the innovative content of their products (ii) venturing into offshoring, or, alternatively, (iii) entering the black economy. We estimate the impact of these moves with firm-level data drawn from two waves of the Italian Manufacturing Survey (IMS) covering a six-year period (1998–2003). We find that offshoring firms are larger, more innovative, have higher capital/labour ratio and are located in provinces where the share of the black economy is lower. Firms belonging to provinces in which the share of the black economy is larger are less likely to choose the internationalization mode. The offshoring-black economy nexus bears relevant policy implications. In particular, vis-à-vis their offshoring companions, firms choosing to enter the black economy may be producing negative spillover effects by lowering productivity and the propensity to innovate.     

Globalization and school enrollment in a panel of countries

As the process of globalization has gained momentum in the past few decades, so too has interest in the effects of globalization on various socioeconomic outcomes grown. In this paper, I investigate the relationship between globalization and primary school enrollment. Both the economic globalization and social globalization measures from the KOF Index of Globalization are utilized in the analysis in order to capture the broad nature of globalization. The results of the panel data analysis indicate that there is a weak relationship between economic globalization and primary school enrollment, whereas the relationship between social globalization and primary school enrollment is both robust and highly significant. Examining the data by groups of countries indicates that relationship between economic globalization and school enrollment is positive and significant in Latin America and the Caribbean and in Asia, while it is weakly negative in Eastern Europe. The positive relationship between social globalization and school enrollment on the other hand is driven by countries in Latin America and the Caribbean and the Middle East and Africa.     

Developing a Global Mindset: Integrating Demographics,Sustainability, Technology,and Globalization

Business schools face a number of challenges in responding to the business influences of demographics, sustainability, and technology—all three of which are also the fundamental driving forces for globalization. Demographic forces are creating global imbalances in worker populations and in government finances; the world economy faces sustainability and climate change challenges; technology is accelerating business change and changing the nature of work; and the global economy is being re-structured with the rise of major emerging economies such as Brazil, India, and China. Given an uncertain future, this essay examines the nature of these challenges and contends that while providing measurable knowledge of global business and specific job skills are important, business schools must focus on the attitudes, skills, and knowledge helpful for student career flexibility including leadership skills, a good work ethic, and abilities to continue learning.     

Globalization, culture, and marketing strategy: Introduction to the special issue

This special issue of the Journal of Business Research features eleven articles selected from the papers presented during the fifth meeting of the Royal Bank International Research Seminar which took place in Montreal at the John Molson School of Business, Concordia University, September 25 and 26, 2009. They cover topics related to globalization, cultural values, global consumer behavior, market segmentation, marketing strategies of emerging economies, consumer socialization, materialism, service quality, and government actions.     

Effects of Multichannel Coordination and E-Commerce Outsourcing on Online Retail Performance

This article assesses the role of multichannel coordination strategy in impacting online performance, and the need for E-commerce functions outsourcing at the initial stages of multichannel integration. Our findings indicate that a higher degree of interchannel coordination increases retailers' online sales. The article also concludes that integrated retailers that outsource more E-commerce functions, such as Web site hosting, site design, content development, order processing, E-mail marketing, Web performance monitoring, and E-logistics, do not show higher online sales performance than those who develop them in-house. Managerial implications of these findings are proposed, and directions for future research are outlined. Based on prior conceptual research, the article develops and empirically tests the construct of multichannel coordination.     

Regulative Distance,Cultural Distance,Host Country Risk,and the Choice of Subsidiary Activity: Evidence from Brazilian Multinationals

This study examines the relationship between regulative distance, cultural distance, and host country risk, as well as the choice of production or distribution activities by emerging country multinationals when establishing a subsidiary abroad. The study uses a sample of 280 subsidiaries of 133 Brazilian firms in 39 countries. Binary logistic regression was used to test the research hypotheses. The impact of regulative distance on the decision on subsidiary activity follows the predictions in the literature. However, findings on cultural distance and host country risk showed an inverted sign, suggesting that Brazilian firms tend to establish production facilities in countries with higher cultural distance and higher cultural risk.     

金融发展、金融脆弱与银行国际化

银行国际化一方面会促进金融发展,另一方面也将导致金融脆弱.本文以理论分析和实证检验相结合的方式,探讨了我国银行国际化从不同方面促进金融发展以及导致金融脆弱之间的逻辑关系,并对两种不同效应从整体宏观的角度进行比较,得出银行国际化正效应大于负效应的结论,从而在理论上回答了政策当局是否应当推行银行国际化的问题.     

全球化、全要素生产率与区域发展差异——基于珠三角、长三角和环渤海的面板数据分析

得益于对外开放政策,地处沿海的珠三角、长三角和环渤海相继成为中国经济的三大引擎,但珠三角仍然保持一种相对优势。这种区域差异是源于全球的数量效应还是质量效应?本文比较分析表明,三大区域之间的TFP存在显著差异;TFP经济增长的贡献,从高到低依次是珠三角、长三角和环渤海。基于贸易、投资和金融维度,本文以面板数据分析技术研究了全球化对区域TFP差异的影响。主要发现是:在区域整体层面上,全球化促进了TFP的提高;但在区域内,全球化对三大区域TFP的促进作用并不显著且无统计意义。全球化对三大区域经济增长的贡献主要是通过数量效应实现的,质量效应尚未成为影响区域经济差距的实质性因素。外贸和FDI增长方式的外延和粗放、较低的金融市场的国际化程度,制约了区域层面TFP的增长。