Multinational Enterprise Subsidiaries and their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies

There is a lack of theoretical consensus on how multinational enterprises (MNEs) should implement corporate social responsibility (CSR) to build legitimacy, particularly those operating in the smaller Asian emerging market context, where current growth in the global economy is being felt more acutely than elsewhere. This paper argues for theoretical integration of business ethics (BE) and international business (IB) research to address this concern. Hence, we explore the management of CSR strategies by MNE subsidiaries with specific interest on their proactive adoption of strategic CSR to obtain legitimacy in a foreign host country. Drawing on the recent CSR literature and related theories, including stakeholder theory and institutional theory, propositions and a conceptual framework are developed and presented. The framework integrates BE and IB concepts on the different dimensions of CSR and provides a theoretical derived explanation of the process for strategic adoption of global through to more local CSR strategies by MNE subsidiaries to build legitimacy in an emerging market context. In addition, the framework provides valuable insights into the adoption of different ethical approaches or CSR strategies based on the level of ethical pressure in a host country and the degree of CSR ingrainedness in the parent company.     

Self- and collective-interests: Using formal network activities for developing firms' business

Many inter-firm network initiatives supported by government funds are based upon the idea that benefits rise incrementally as more actors connect with each other. This paper takes the stand that self-interest and collective-interest are evident in how firms participate in network activities, and how these activities are related to the development of the network. A time-flow model is presented of firms' participation and activities in a network according to specific blends and understandings of self- and/or collective-interest. The way the network is formed also shapes managerial understanding of why firms participate in activities and how self- and collective-interests coincide. A qualitative study in the Danish food industry establishes that every firm views business network activities as important, but each engages differently in these activities. The results of this study reveal interesting patterns between self- and collective-interests for those participating in network activities and the resulting network development. A key finding of this study is the importance of a firm's ability to convert the collective-interest of joint network activities into self-interest gains for the firm. This ability is proposed as an additional network competence to those already present in the literature.     

The use of term structure information in the hedging of mortgage‐backed securities

This article examines the importance of term structure variables in the hedging of mortgage‐backed securities (MBS) with Treasury futures. Koutmos, G., Kroner, K., and Pericli, A. (1998) find that the optimal hedge ratio is time varying; we determine the effect of yield levels and slopes on this variation. As these variables are closely tied with mortgage refinancing, intuition suggests them to be relevant determinants of the hedge ratio. It was found that a properly specified model of the time varying hedge ratio that excludes the level and slope of the yield curve from the information set would provide similar out‐of‐sample hedging results to a model in which term structure information is included. Thus, both the level of interest rates and the slope of the yield curve are unimportant variables in determining the empirically optimal hedge ratio between MBS and Treasury futures contracts. © 2005 Wiley Periodicals, Inc. Jrl Fut Mark 25:661–678, 2005     

Bridging what we know: The effect of cognitive distance on knowledge-intensive business services produced offshore

The rise of offshoring of knowledge-intensive business services (KIBS), causing a physical separation between clients and service providers in co-created services, is a major trend in practice but challenges existing theories. International business literature has addressed many types of distance that may affect (service) offshoring, such as cultural or geographic distance. However, limited emphasis has been placed on the implications of differing cognitions of individuals that produce a cognitive distance (CD). We address this gap and ask how increased CD through offshoring affects KIBS production processes. This conceptual paper focuses on how CD interacts with the modularity of different process stages in service production and what effect CD has on repeated production processes. In order to do so we first predict what stages of KIBS production processes can be offshored and what implications offshoring has on these services. We contribute to literature by deepening the understanding of CD and providing a process perspective on KIBS offshoring that looks at modularity within services, rather than firms as bundles of modular production, and on the impact repeated production processes have on service characteristics.     

Multinational mining companies,employment and knowledge transfer: Chile and Norway from ca. 1870 to 1940

Abstract

This article compares employment at multinational mining companies in Chile and Norway from ca. 1870 to 1940. I find that multinationals in Chile recruited foreigners to managing and middle-management positions, while Norwegian workers were heavily involved in management of multinationals in Norway. The exclusion of Chileans encouraged enclave tendencies and prevented knowledge transfer, while strong networks were created between multinationals and the local industry in Norway through job switching. Evidence suggests that local workers were employed if they were qualified and that discrepancies in institutions stimulating capacity building in the two countries largely explain the different employment patterns.     

Diversity and the starting salaries of undergraduate business school students

The authors treat racial diversity of the student body at both the college of business and the institutional level as an input into the undergraduate business school productive process, and find that diversity is positively related to improved student starting salary outcomes. The effects are meaningful—a 1-SD in increase in student racial diversity implies a six- to seven-place increase in salary rank among the 90 schools for which the authors have data.