Dark times for cosmopolitanism? An ethical framework to address private agri-food governance and planetary stewardship

The scholarly tradition of cosmopolitanism (illustrated by the old saying, “I am a citizen of the world”) offers important insights into the examination of agri-food multinational corporations (MNCs) as powerful global actors. Acknowledging that agriculture is the business sector with the highest planetary environmental impact, in this paper, we advance existing discussions around cosmopolitanism and the normative implications of considering agri-food MNCs as political actors. Relying on an integrative literature review, we propose a tripartite ethical framework that gives a new momentum to the ideals and tenets of cosmopolitanism. This novel lens offers an integrated, seamless ethical approach and revolves around three dimensions: culture, morality, and governance. The first dimension examines key agri-food cultural and social-ecological issues, the second acknowledges interdependence and causality as central to understanding MNCs’ ethical responsibilities, and the third outlines several governance parameters around legitimacy, planetary reach and efficiency. Hence, our integrative framework resituates the planetary geographical imagination of cosmopolitanism within the biophysical parameters outlined by the planetary boundaries concept, advancing key issues on private agri-food environmental governance and planetary stewardship.     

Intangibles Trade and MNEs: Supply-Chain Trade in R&D Services and Innovative Subsidiaries

This paper contributes to the literature on vertical specialization in R&D (or ‘R&D fragmentation’) and trade in intermediate services by examining the role of multinational enterprises (MNE) activities associated with bilateral foreign direct investment (FDI). Prior work in production networks (or global value chains [GVCs]) and R&D fragmentation suggests a complementarity relationship between FDI in R&D and technological knowledge flows. The paper examines this proposition empirically for R&D services trade by extending the gravity framework of supply-chain trade for intermediate services with bilateral MNE operations as economic mass variables. The results are partially consistent with the hypothesized complementarity. The econometric strategy accounts for zero trade observations. The latter addresses possible selection and consistency issues of traditional gravity trade specifications, and allows exploring extensive vs. intensive margin of trade. Understanding the role of MNEs in these transactions may be useful for policies aimed at increasing participation and upgrading in MNE-driven GVCs.     

Democracy,Cooperation and Business Success: The Case of Mondragón Corporación Cooperativa

Are democracy and success compatible in a business organization? In this work we show how Spain’s Mondragón Corporación Cooperativa (MCC) has made it possible. MCC can be considered a world leader in cooperativism. It is one of the few contemporary business organizations that can be viewed as a democracy, and it represents a unique experience in the use of democratic and participatory methods in management. MCC has developed its own Management Model based on its cooperative principles, on modern management practices and on the cutting edge experiences of the most advanced companies. In this work we analyze the key elements of MCC’s democratic management model, developed around aspects such as corporate culture, organizational structure or human resources. We also look at the case of Irizar, a component cooperative of MCC internationally known for its successful management model. Finally, we outline some practical implications of introducing democracy into organizations, drawn from the experiences of MCC and Irizar.     

Comparing trade areas of technology centres using ‘Geographical Information Systems’

Advances in geographical information systems have contributed to location and marketing design strategies on the part of retailers. The techniques used in this field are based on delimiting trade areas and spatial analysis. The same approach is applied in this study to technology centres, which are considered as suppliers of knowledge-intensive services to their associated firms. The research objective focuses on analysing the spatial distribution of firms associated with two technology centres from different sectors. The results indicate that firms associated with a technology centre present spatial patterns that are similar to those observed in retailing, while significant differences were also found between the two technology centres used for the study.     

Innovation and service-dominant logic

Radical changes have occurred in innovation management. Traditional goods-dominant logic has shifted to service-dominant logic, where value is created for use instead of exchange. Customers are tied to organizations to co-create value. The focus of this special issue is on high quality, original, unpublished research, case studies, and implementation experiences. The issues are covered, including the collaborative workplaces for innovation in service companies, the financial crisis in hospitality industry, the role of quality management in innovation, and the value logic in service.     

Women on the Board and Managers’ Pay: Evidence from Spain

The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such relationships. We employ two stages of GMM estimation methodology to exhibit evidences of the relationship between gender diversity and compensation of top managers in the Spanish context. Results show that gender diversity positively affects the effectiveness of boards—in terms of composition, structure, size and functioning—influencing a proper design of top managers compensation linked to company performance. Evidences suggest that legislative actions aimed at increasing the presence of women on boards of directors are justified not only for ethical reasons, but also for reasons of economic efficiency.     

Intermediate units in multinational corporations: A resource dependency view on coordinative versus entrepreneurial roles

Due to the dispersion of headquarters’ activities across organizational and geographical boundaries, intermediate units (IUs) are emerging as a key actor of international business. IUs are intermediate structural layers between headquarters (HQ) and local subsidiaries with specific HQ responsibilities. Our study relies on original data of 67 IUs and, taking on a Resource Dependence approach, explores empirically the two HQ roles attributed to IUs: coordinative versus entrepreneurial. According to our results, the main differences between both roles relate to external network embeddedness, internal network position and autonomy. We argue that these differences arise from the dominant sources of power in each role. These findings have signi?cant relevance for theory development and managerial practice as we provide a starting point for understanding the dispersion of complex HQ systems as well as how those systems are discharged and add value.     

Risk premia in forward exchange rates: systematic or unsystematic?

International traders frequently use forward exchange transactions to hedge their cash flows in foreign currencies. A key issue is whether the forward rates are efficiently priced. There is evidence of time-varying risk premia in forward exchange rates. Are these risk premia systematic or unsystematic? This article uses a market model to explain risk, implying that the risk premium in the forward rate varies pari passu with the beta of the return to speculative forward positions. Assuming the unobserved risk premium is proportional to the forward premium allows testing the predicted relations; the data reject the joint hypotheses of the model and systematic risk. In terms of a simple factor model explaining the covariation of the forward premium, the risk premium, and the expected percentage rate of change of the spot exchange rate, the assumption that the forward premium and the risk premium are proportional can be relaxed without changing the empirical results.