Through Thick and Thin? How Self‐determination Drives the Corporate Sustainability Initiatives of Multinational Subsidiaries

Multinational corporation (MNC) subsidiaries implement corporate sustainability initiatives (CSIs) if they are self‐determined to do so (based on intrinsic motivation) or when urged on by circumstances and pressures (based on extrinsic motivation). Such differences in self‐determination are derived from underlying corporate psychological needs for competence, autonomy and relatedness, and are manifested in the governance choices of making, allying or buying CSIs. In this study of oil and gas MNC subsidiaries in the developing country context of Trinidad and Tobago, four distinct types of firm are identified based on their levels of self‐determination and corporate governance tendencies. These groups are identified as trail blazers, marching soldiers, sharp shooters and fire fighters, and their distinctive characteristics are described. These findings are useful to corporate sustainability strategists seeking to select, design and implement CSIs that satisfy MNC headquarter directives but balance subsidiary objectives of maintaining good relations and access to operate in developing countries. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

LOW-INCOME HOUSING IN INDIAN CITIES: SOME CONSIDERATIONS FOR POLICY

Across cities in India, migrant groups, squatters and the urban poor residing in slums have played a crucial role in developing low-income housing. This form of housing is closely connected to the economic activity of the poor, which in turn contributes to the wider urban economy. It also enables the poor to consolidate their position in the city and make claims on the city administration for infrastructure. However, such housing has been bracketed as 'informal' and lacks legitimacy. Policies concerning low-income housing must address this issue while enabling the poor to further their economic and entrepreneurial initiatives.     

Optimal pricing and ordering policy for deteriorating inventory under trade credit in demand declining market

In market, the retailer tries to sell the product at much higher price than the purchase cost. In this study, an attempt is made to develop optimal ordering and pricing policy for a retailer when the supplier offers a credit period to settle the account. The demand of a product is declining with time and units in the retailer＇s inventory are subject to constant deterioration. An algorithm is developed to determine the optimal selling price and the ordering quantity to maximize the retailer＇s profit. The numerical examples are given to support the development of the mathematical model. The sensitivity analysis of critical parameters is carried out to observe the changes in the decision variables and objective function.     

Firm characteristics and selection of international accounting software

We report the results of a survey of international U.S. companies focused on the selection of international accounting software. We investigate the relationships among firm characteristics (size and degree of internationalization), international features of accounting software (multicurrency, multireporting, and multilingual), and general selection criteria (support and security, hardware and operating platforms, and flexibility and cost). We find that firms’ reported preferences for international features differ depending on size and degree of internationalization. However, the relationship between firm characteristics and general selection criteria is not significant. The implication from our results is that firm characteristics should be an important consideration in the selection and design of international accounting software.     

The market share-profitability relationship: An empirical assessment of major assertions and contradictions

While previous research on the relationship between market share (MS) and business profitability (BP) has found a positive relationship, its nature (i.e. direct versus spurious), its context-specificity, and the validity of MS as a predictor of BP have not been adequately addressed. Employing path analysis, this study examined the nature of this relationship across a taxonomy of homogeneous environments. The major findings were that (1) the association between MS and BP is context-specific; (2) both direct and spurious relationships exist, and their relative strengths vary across environments; and (3) the validity of MS as a predictor of BP is context-specific. Further, key firm conduct variables accounting for the spuriousness have been identified. Finally, implications of these findings for managers pursuing market share as a goal are discussed.     

Experimenting with Supply Chain Learning (SCL): Supplier Diversity and Ethnic Minority Businesses

This paper reports on an innovative UK-based ‘Supply Chain Learning’ (SCL) initiative to encourage the corporate sector to consider supplier diversity in respect of ethnic minority businesses. This follows academic and policy interest in programmes to empower ethnic minority enterprises to achieve breakout to mainstream markets and business growth. The first phase of the initiative, entitled Supplier Development East Midlands (SDEM) is examined. By adopting an inter-organisational action learning approach, some of the key attributes of the programme are delineated, focusing on the recurrent action-reflection cycle taking place in a learning group comprising SDEM, LPOs (Large Purchasing Organisations) and small EMSs (Ethnic Minority Suppliers).     

Till death do us part…but not always: Six antecedents to a customer's relational preference in buyer-seller exchanges

Since its emergence in the early 1990s as marketing's newest paradigm or school of thought, research in the area of relationship marketing has been proliferating. From the customer's perspective, initial attempts to become lifelong partners with key sellers or suppliers were appealing. However, as these propositions multiply in number and carry with them increasing burdens in terms of time and commitment, customers are reticent to enter into long-lasting relationships with all sellers. In this paper, we consider relationship formation from the customers' perspective and examine the antecedents to a customer's preference for a relational exchange orientation versus a transactional exchange orientation. Our belief is that, depending upon a set of contextual factors surrounding the exchange, customers will opt for a relational orientation with suppliers in some cases and for a more transactional orientation in others.     

The impact of corporate social disclosure on investment behavior: A cross-national study

We examine the impact of corporate social disclosure (CSD) on investment behavior in the US, Japan, France, and Sweden using stakeholder theory as the underlying framework for our analysis. We find that there is a significant difference in investors’ reactions to CSD across countries. Using a unique stakeholder scale we also find that these reactions are related to the investors’ stakeholder orientation. These findings provide insight into cross-national differences in the perceived relevance of CSD to investors.     

Linking routines to operations capabilities: A new perspective

A typical approach to studying capabilities in the operations management literature is to assess the intended or realized competitive operational performance and their contribution to business and organizational objectives. While it is crucial to identify the operational performance that helps create competitive advantage, it is equally important to understand the means for delivering the needed performance at the operational level. Drawing on the resource-based view (RBV), we argue that routines are a critical source of operations capabilities and subsequently investigate operations capabilities by means of their underlying routines. Because a common problem to studying capabilities is the ambiguous and confusing definitions, we conduct an extensive literature review to address the semantic confusion among various definitions of capabilities and delineate it from other related terms. We identify improvement and innovation as two critical plant level capabilities, each consisting of a bundle of interrelated yet distinct routines. We then empirically measure the two capabilities as second-order latent variables and estimate their effects on a set of operational performance measures. The results suggest that routines form internally consistent bundles which are significantly related to operational performance. This supports our notion of “capabilities as routine bundles” that are difficult to imitate and thus a source of competitive advantage.     

An empirical study of interest rate swap usage by nonfinancial corporate business

This study examines the relationship between the probability and extent of a firm's participation in interestrate swap markets and the magnitude of some of its operating and financial ratios. These ratios are selected to proxy incentives to reduce agency costs of leverage and information asymmetry in credit markets. The data on swap usage are obtained from disclosures mandated by SFAS 105. The results suggest that fixed-rate payers, compared to non-swap-users, have more leverage, greater profitability, more growth options, less operating risk, lower ratios of fixed to total assets, and more divergent earnings estimates. On the other hand, floating-rate payers do not seem to have financial and operating characteristics significantly different from non-swap-users, although they do have less divergent earnings estimates.This study is based, in part, on one of the essays in my doctoral dissertation at Indiana University. Further research was supported by a grant from the Western Michigan University Faculty Research and Creative Activities Support Fund. The study has also benefited from comments on an earlier version by participants at the Eastern Finance Association Annual Meetings, 1993.