A strategic contingency approach to expatriate assignment management

This exploratory study examines how expatriate management practices differ with respect to three international management strategies (local, centralised or global) in 27 mature multinational corporations. In particular, this study examines the categories of expatriate assignments, the strategic integration of expatriate assignments into leadership development and the types of human resource practices that firms utilise to manage expatriates. Results indicate that organisations differentially assign expatriates based on the firm's respective international management strategy. Firms with a global management strategy made greater use of developmental expatriates, had a greater number of senior managers with expatriate experience and had a stronger focus on leadership development through expatriation. Firms did not differ with respect to their use of expatriate management practices based on their international management strategy.     

Company reputation and its influence on consumer trust in response to ongoing CSR communication

There is considerable disagreement in academic scholarship and beyond as to whether, in cases of bad reputations, companies will want to communicate corporate social responsibility (CSR) activities because this kind of communication is likely to increase consumers’ skepticism. In this regard, the two empirical studies discussed in this article examine the influence of prior company reputation on consumers’ trust in response to CSR communication in general and the development in response to continuous CSR activities and their ongoing communication by companies as well as by the media in particular. The two studies show that consumers’ trust in companies’ CSR activities increases after a second presentation of information by companies even in instances when companies had prior negative reputations. The second study in particular fills a gap in the literature on underlying mechanisms of consumers’ reactions to CSR communication. The results suggest that companies with prior negative reputations do not need to remain silent about their CSR activities; instead, CSR communication can help improve consumers’ trust in companies. However, the findings of these two studies also suggest that this positive development is short-lived. Consumers’ developing trust in companies’ CSR activities decreases significantly if they are exposed to negative information on these companies.     

A spatial approach to the FDI-growth nexus in Spain: Dealing with the headquarters effect

This paper examines the effects of inward FDI on economic growth across the Spanish regions over the period 1996–2013, paying particular attention to the ‘headquarters effect’, namely that FDI is not always registered where it is effectively made but in the region in which the firm’s headquarters is located. By estimating a panel Spatial Durbin Model to allow for the detection of spatial spillovers, two main findings are reported. First, FDI does foster economic growth. Second, only when the headquarters effect is properly addressed do spatial spillovers arise. Hence, this effect is masking the impact of regional FDI spillovers on growth, which affects the reliability of the results and, consequently, FDI policies choice. Importantly, the results are: a) robust to the way of computing the headquarters effect; b) independent of the spatial weight matrix specification; and c) confirmed when splitting FDI into different industrial and service branches.     

Cultural agility and international assignees’ effectiveness in cross‐cultural interactions

While many mutable competencies and immutable personality traits have been shown to have a direct positive relationship with international assignee success, this study examines whether a set of situation‐specific cross‐cultural competencies comprising cultural agility are also related to international assignee success. This study examines whether the combination of three situation‐specific responses to cultural differences (cultural adaptation, cultural minimization and cultural integration) explain any additional variance in supervisor's ratings of international assignee success above and beyond personality and cross‐cultural competencies. To test this hypothesis, supervisor‐rated of assignees’ effectiveness in working with host nationals was regressed on the number of international assignees’ cultural orientations. Controlling for personality and dynamic competencies, the overall model was significant explaining 17 per cent of the total variance. This study provides some preliminary evidence on the importance of expatriates’ possessing the ability to possess concurrent cultural orientations. The HR practices to foster cultural agility are discussed.     

Who Uses Facts Up Front? A Baseline Examination of Who is Using Standardized Front‐of‐Package Nutrition Disclosures

The Facts Up Front front‐of‐package (FOP) nutrition system is currently displayed on packaged foods in the United States. This initiative is being implemented by more than 50 manufacturers, retailers, and wholesalers in the United States on their branded and private‐label packaged food products. The in‐store presence of Facts Up Front is supported by a recently launched consumer education campaign. This study employs a sample of 1,400 female primary household shoppers with children, with oversamples of Hispanic and African American ethnic subgroups, to examine initial awareness and evaluations of Facts Up Front. Results show that Hispanics are more aware of and engaged with Facts Up Front than Caucasians. African Americans report higher levels of engagement and understanding of Facts Up Front vs. Caucasians. Importantly, Hispanic and African American mothers also report using this FOP system to make decisions. Based on these findings, important implications are offered for consumer welfare and public policy.     

Corporate Frauds as Criminal Business Models: An Exploratory Study

In this article, we report on the findings of an exploratory, interpretive study of a notorious corporate fraud that occurred in Brazil from 1989 to 2005. We examine the process by which this scheme was created as well as how it was maintained for all those years. Our analysis covers both the substantive aspects (the actions fraud agents effectively perform) and the symbolic aspects (the resources of impression management that they use). We suggest that under certain circumstances, corporate frauds may be understood as the result of implementation of a criminal business model that focuses on a niche market of risk takers or greed investors, uses aggressive commercial practices and offers exclusivity, promotes the organization's image and personality cult of the entrepreneur, operates a management model that combines centralized control with fragmented systems, and uses complex fraudulent practices. This perspective allows us to understand the phenomenon of corporate fraud from a systemic point of view. We also suggest directions for future research and theory development on corporate frauds. © 2014 Wiley Periodicals, Inc.     

The Selection of Distribution Channels in China

This contribution first traces the development of the distribution system in China from state monopoly to one which permits the limited participation of foreign ventures, and examines the problems faced by foreign investors in managing the distribution channels under such a transitional economy. Due to China's abundance of linguistic, cultural and economic differences, combined with growing territorialism at the provincial level, different problems may be encountered in different citieslregions, and therefore foreign investors need to modify their distribution strategies accordingly. Detailed case studies are provided as illustrations.     

Shaping Ethical Perceptions: An Empirical Assessment of the Influence of Business Education,Culture, and Demographic Factors

Recent events at Enron, K-Mart, Adelphia, and Tyson would seem to suggest that managers are still experiencing ethical lapses. These lapses are somewhat surprising and disappointing given the heightened focus on ethical considerations within business contexts during the past decade. This study is designed, therefore, to increase our understanding of the forces that shape ethical perceptions by considering the effects of business school education as well as a number of other individual-level factors (such as intra-national culture, area of specialization within business, and gender) that may exert an influence on ethical perceptions. We found significant effects for business education, self-reported intra-national culture, area of specialization within business, and gender for some and/or all areas of ethics examined (i.e., deceit, fraud, self-interest, influence dealing, and coercion). One of our most encouraging findings is that tolerance for unethical behavior appears to decrease with formal business education. Despite the prevalent stereotype that business students are only interested in the bottom line or that business schools transform idealistic freshman into self-serving business graduates, our results suggest otherwise. Given the heightened criticism of the ethicality of contemporary managerial behavior, it is heartening to note that, even as adults, individuals can be positively affected by integration of ethics training.     

Consumption asset pricing and the term structure

We investigate the relationship between consumption and the term structure using U.K. interest rate data. We demonstrate that the term structure contains information about future economic activity as implied by the benchmark time separable power utility consumption based capital asset pricing model (C-CAPM) since the yield spread has forecasting power for future consumption growth. Further, we analyze the ability of this benchmark and two alternative models which adopt utility functions characterized by non-separability, namely, the extension to the habit formation model of Campbell and Cochrane (1999) proposed by Wachter (2006) and the housing C-CAPM proposed by Piazzesi, Schneider and Tuzel (2007). Our findings are supportive of the habit formation specification of Wachter (2006), other models fail to yield economically plausible parameter values.