The purchasing department's leadership role in developing and maintaining a preferred customer status

Developing and maintaining a preferred customer status is one of the main objectives of organizations that want to obtain a better access to supplier's information, resources, and innovation. This paper addresses the extent and the nature of the purchasing department's leadership role in the process of developing and maintaining a preferred customer status. A qualitative exploratory approach based on eleven cases has been used in order to take into consideration the context specific to the buyer-supplier relationship in a preferred customer scenario.Our study shows that the purchasing department performs four main categories of roles: (1) identifies and selects the best supplier, (2) structures and segments the supply base, (3) builds close relationships with selected suppliers and (4) develops working relationships, using an effective communication. Each of these roles is related to three key components of the purchasing department's capabilities: boundary, relational, and coordination. These four categories of roles illustrate supply's ability to recognize and understand the specifics of the preferred customer situation. Based on our analysis, the purchasing department should be viewed as extending an organization's resource base, making the organization more competitive.Our analysis also shows that the purchasing managers' leadership is critical for the development and the coordination of activities with selected suppliers, as well as proper communication with them. Specifically, the purchasing manager's transformational leadership generates more internal user and supplier involvement through the creation and articulation of a common vision, by establishing shared goals with other organizational units, and by focusing on activities that benefit the organization; this allows to move from initiative-driven efforts to an “institutionalized preferred customer status management” in the organization.     

Dischord and Dissonance in the Leisure Studies Polyphony: A Response to Fox and Klaiber

This study examines females' participation in the male-dominated sport of motorcycling. Group interviews with female motorcyclists explore the meaning of this leisure activity in their lives and various factors that facilitate their participation. A grounded-theory approach reveals five sources of empowerment that women gain by participating in motorcycling. This study demonstrates the role facilitators play in creating and cultivating sources of empowerment. It also exposes how feelings of guilt, vulnerability, and concern about societal images can undermine women's feelings of empowerment. “Girl power” represents women's attempts to redefine femininity in a way that embraces the positive aspects of both femininity and masculinity and resists negative stereotypes that restrict women's choices of leisure pursuits.     

Global,national and local practices in multinational corporations: towards a sociopolitical framework

This paper intends to shed some light on strategies and power resources of subsidiary managers and employee representatives involved in ‘charter changes’ and the implementation of ‘best practices’ developed elsewhere. Research shows that local managers face a dilemma in that they need both internal legitimacy (within the MNC itself) and external legitimacy (within the local context). It is argued that the power resources key actors draw on in the (internal) decision-making processes of ‘charter changes’ are intertwined with certain (external) national business system (NBS) characteristics, an aspect often neglected in North American research about MNCs. The authors identify three key influences, which restrain or empower local management and employees in their ability to make strategic choices and gain power within the MNC. They are (1) the overall strategic approach of the multinational group, (2) the strategic position and the economic performance of the subsidiary itself and (3) the degree of institutional embeddedness of the subsidiary in the host country. Comparative mini-case studies are used to illustrate the effect of local management and employee representatives' empowerment on their ability to retain skills and work practices supportive of a diversified quality production process in the face of MNC pressure to adopt global ‘best practices’ based on more standardized production processes.     

The Impact of Integration and Responsiveness on MNC Subsidiaries’ Market Orientation

ABSTRACT

In this study, the author explored the impact of integration and local responsiveness on the market orientation of multinational corporations’ foreign subsidiaries. An investigation of a sample of 250 foreign subsidiaries in the United Kingdom revealed different effects of integration and local responsiveness on market orientation. In specific, integration directly impacts the development of market orientation of multinational corporations’ subsidiaries, whereas responsiveness effects on market orientation are mainly indirect through first affecting the top management emphasis and then the use of market-based reward systems at subsidiaries. Managerial and research implications are discussed.     

Patterns of power distribution in managerial decision making in Chinese and British industrial organizations

This article is one of three reports about the results of a Sino-British joint research project on managerial decision making in eleven Chinese companies and ten British companies. Forty managers and twenty trade union leaders from both manufacturing and service industries participated in the study. Data about decision-making patterns in eighteen different decision tasks in the organizations were collected. The results showed that there were interesting organizational and cultural differences in decision-making patterns in the two countries between manufacturing and service industries, between management and trade union groups, among short-, medium- and long-term decisions and across organizational levels. There were clear shifts of the decision-making power across organizational levels depending upon the type of decision tasks. A model of decision power shift was proposed in terms of the effects of organizational and cultural factors on patterns of organizational decision making. The implications of the decision power shift model to the management practice in the international context were highlighted.     

Transnational HR network learning in Korean business groups and the performance of their subsidiaries

This study explores (1) how two distinct dimensions of transnational human resources (HR) network learning, i.e. globally linked and locally leveraged learning, are related to the performance of the foreign subsidiaries of Korean business groups (chaebols) and (2) how strategic HR learning mediates the relationship between these two dimensions of transnational HR network learning and the performance of foreign subsidiaries. We propose that each dimension of transnational HR network learning is related independently and jointly to the performance of a chaebol's foreign subsidiaries. Our results suggest that locally leveraged HR learning has a stronger relationship with the performance of sales subsidiaries, whereas globally linked HR learning has a stronger relationship with the performance of manufacturing subsidiaries. In addition, we find that the interaction between the two dimensions of transnational HR network learning has a weaker positive relationship with the performance of foreign manufacturing subsidiaries than that of foreign sales subsidiaries.     

Chinese management practices in the New Zealand context: the social behaviour of individuals in business outside one's own cultural environment

Among the dilemmas facing tourism and hospitality development internationally is the requirement for a greater understanding of each other's culture, and how this background of difference affects business between various parties. Many texts and theorists have identified factors aligned to family values that affect the social behavior of individuals when conducting business between Eastern and Western managers. This paper and case study draws upon the relationship and experiences of a segment of Chinese businessmen within the New Zealand hotel, tourism and business sectors. The businessmen were two international “hoteliers” who currently own properties in New Zealand, and also a Chinese investment adviser, who has visited New Zealand representing foreign investors. The feedback to date indicates that research into Chinese management practices within the hospitality industry in New Zealand is very limited, with little access to past research in this field.     

The mediating roles of governance mechanisms and knowledge transfer on the relationship between specific investments and cooperative innovation performance

This study seeks to understand the influence of specific investments (SIs) to cooperative innovation performance (CIP) by examining the mediating roles of knowledge transfer (KT) and governance mechanisms (GMs), including formal contracts (FCs) and relational trust (RT). A sample of 238 projects is used to test the proposed model through structural equation modelling. The results show SIs act indirectly through RT to influence CIP. KT plays a mediating role between the two GMs and CIP. Moreover, the results suggest that the mediating effect of KT between FCs and performance is full; however its effect between RT and performance is only partial, and the mediating effect of RT between SIs and performance is also partial.     

Understanding the interaction of motivation and opportunity for tax planning inside US multinationals: A qualitative study

We explore the internal workings of tax planning within US multinational enterprises (MNEs) using a qualitative research method. We conduct a series of interviews with senior tax executives, which we supplement with other public information. We find that US MNEs adopt a heterogenous range of approaches driven by the motivations as well as the opportunities to reduce their tax bill legally. We develop a new theoretical framework that analyses the interactions of motivations and opportunities in MNEs’ tax planning strategy. We generate four typologies of corporate tax payers. Our study provides new insights detailing why and how companies plan their tax.     

Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research

We review the contributions to research on headquarters–subsidiary (HQS) relationships published in the Journal of World Business (known as the Columbia Journal of World Business until 1997) from the late 1960s to the present day. Based on 81 articles on the topic, we identify trends and dominant approaches in the journal's contributions to this area and link them to trends in the broader field of international management (IM) research and practice. We underline the journal's pioneering role in identifying and bringing to the forefront novel research questions and ideas that would later become central to the IM field. We conclude by assessing the importance and relevance of the journal's contributions to the literature on HQS relationships and by suggesting several directions for future research in this area, which could build on past work and leverage new phenomena.