Pub Date : 2023-05-30DOI: 10.1108/cpoib-03-2023-0019
M. Forsgren, M. Yamin
Purpose The purpose of this paper is to respond to the comments by professor Ietto-Gillies on the paper on “The MNE as the Crown of Creation?” Design/methodology/approach The authors argue that the key points made in the commentary are broadly complementary to the arguments set out in the “Crown of Creation?” Findings The authors agree with the commentary that sources of advantages of multinationality lie “outside the MNE” – through its interactions with national governments and organised labour. However, the authors would caution that the achievement of such advantages may encounter constraints. Research limitations/implications The original paper (“The MNE as the Crown of Creation?”) was a critique of mainstream theories of the MNE regarding the assumed superiority of the MNE. The response to the paper makes the argument that any superiority associated with MNE must be sought in its interactions with other actors. Practical implications The argument suggests that MNE managers seeking to exploit the advantage of multinationality through production shifting must be aware of the system-wide consequences of such actions. Social implications Given the conceptual nature of the argument and the level of abstraction, solid social implications can only be drawn tentatively. Originality/value The key novelty in the response paper is the possible negative effect – for MNEs – of unconstrained exercise of production shifting.
{"title":"The source of MNE superiority from within or from outside? – A response to “the importance of being transnational”","authors":"M. Forsgren, M. Yamin","doi":"10.1108/cpoib-03-2023-0019","DOIUrl":"https://doi.org/10.1108/cpoib-03-2023-0019","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to respond to the comments by professor Ietto-Gillies on the paper on “The MNE as the Crown of Creation?”\u0000\u0000\u0000Design/methodology/approach\u0000The authors argue that the key points made in the commentary are broadly complementary to the arguments set out in the “Crown of Creation?”\u0000\u0000\u0000Findings\u0000The authors agree with the commentary that sources of advantages of multinationality lie “outside the MNE” – through its interactions with national governments and organised labour. However, the authors would caution that the achievement of such advantages may encounter constraints.\u0000\u0000\u0000Research limitations/implications\u0000The original paper (“The MNE as the Crown of Creation?”) was a critique of mainstream theories of the MNE regarding the assumed superiority of the MNE. The response to the paper makes the argument that any superiority associated with MNE must be sought in its interactions with other actors.\u0000\u0000\u0000Practical implications\u0000The argument suggests that MNE managers seeking to exploit the advantage of multinationality through production shifting must be aware of the system-wide consequences of such actions.\u0000\u0000\u0000Social implications\u0000Given the conceptual nature of the argument and the level of abstraction, solid social implications can only be drawn tentatively.\u0000\u0000\u0000Originality/value\u0000The key novelty in the response paper is the possible negative effect – for MNEs – of unconstrained exercise of production shifting.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":"1 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43156705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-18DOI: 10.1108/cpoib-02-2023-0013
G. Ietto-Gillies
Purpose The paper takes the lead from Forsgren and Yamin (2022), “The MNE as the ‘crown of creation’?: A commentary on mainstream theories of multi-national enterprises”, and accepts that the MNE can, indeed, be seen as the “crown of creation” in the world of business. The purpose of the paper is to show that this is due to advantages of multi/transnationality that must be sought outside rather than within the firm itself. Design/methodology/approach The paper argues that the advantages of multi-nationality derive from the differences in regulatory regimes between nation-states and, specifically, from laws and regulations regarding the following: labour and social security, industrial policy, taxation and environmental regulations. Some examples are given. Findings It is claimed that the transnational company (TNC) has the ability to operate as a unified centre of strategic decision-making, and this gives it an advantage compared to operators it bargains with who do not possess such ability. Three such operators are discussed: labour, governments of nation-states and suppliers. In TNCs’ operations with foreign countries, a distinction is made between the spatial dimension and the regulatory regimes dimension. The interaction between these two dimensions leads to discussions on: regions within nation-states and their regulatory regimes, global value chains (GVCs) and free/investment zones (F/IZs). The conclusions draw policy implications and research agenda implications touching also on issues of TNCs as creator/destructors of social values. Research limitations/implications The paper refers to other published work by the author – solo or as co-author – where the arguments are further developed, including the finding of a detailed case study. There are policy implications regarding labour and its trade unions (TUs) as well governments and their taxation and industrial policies. Details of such policies need further development. Practical implications There are implications for theory development, policies and for research agendas. Social implications Governments of nation-states and institutions within them – such as TUs – should try to co-ordinate rather than compete with each other in their bargaining with transnational companies. The breakaway of regions within nation-states further increases the power of TNCs. Originality/value In the development of theories of the TNC, this work shifts the focus from internal characteristics within the firm and its markets to external ones: to the nation-states as jurisdictional loci. The distinction between spatial and regulatory regimes dimensions in dealing with transnational activities allows a novel viewpoint on: regions, GVCs and IZs. A novel viewpoint is also given in relation to the role of TNCs in social value.
{"title":"The importance of being … transnational","authors":"G. Ietto-Gillies","doi":"10.1108/cpoib-02-2023-0013","DOIUrl":"https://doi.org/10.1108/cpoib-02-2023-0013","url":null,"abstract":"\u0000Purpose\u0000The paper takes the lead from Forsgren and Yamin (2022), “The MNE as the ‘crown of creation’?: A commentary on mainstream theories of multi-national enterprises”, and accepts that the MNE can, indeed, be seen as the “crown of creation” in the world of business. The purpose of the paper is to show that this is due to advantages of multi/transnationality that must be sought outside rather than within the firm itself.\u0000\u0000\u0000Design/methodology/approach\u0000The paper argues that the advantages of multi-nationality derive from the differences in regulatory regimes between nation-states and, specifically, from laws and regulations regarding the following: labour and social security, industrial policy, taxation and environmental regulations. Some examples are given.\u0000\u0000\u0000Findings\u0000It is claimed that the transnational company (TNC) has the ability to operate as a unified centre of strategic decision-making, and this gives it an advantage compared to operators it bargains with who do not possess such ability. Three such operators are discussed: labour, governments of nation-states and suppliers. In TNCs’ operations with foreign countries, a distinction is made between the spatial dimension and the regulatory regimes dimension. The interaction between these two dimensions leads to discussions on: regions within nation-states and their regulatory regimes, global value chains (GVCs) and free/investment zones (F/IZs). The conclusions draw policy implications and research agenda implications touching also on issues of TNCs as creator/destructors of social values.\u0000\u0000\u0000Research limitations/implications\u0000The paper refers to other published work by the author – solo or as co-author – where the arguments are further developed, including the finding of a detailed case study. There are policy implications regarding labour and its trade unions (TUs) as well governments and their taxation and industrial policies. Details of such policies need further development.\u0000\u0000\u0000Practical implications\u0000There are implications for theory development, policies and for research agendas.\u0000\u0000\u0000Social implications\u0000Governments of nation-states and institutions within them – such as TUs – should try to co-ordinate rather than compete with each other in their bargaining with transnational companies. The breakaway of regions within nation-states further increases the power of TNCs.\u0000\u0000\u0000Originality/value\u0000In the development of theories of the TNC, this work shifts the focus from internal characteristics within the firm and its markets to external ones: to the nation-states as jurisdictional loci. The distinction between spatial and regulatory regimes dimensions in dealing with transnational activities allows a novel viewpoint on: regions, GVCs and IZs. A novel viewpoint is also given in relation to the role of TNCs in social value.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46812712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-10DOI: 10.1108/cpoib-04-2022-0023
Purpose This paper aims to investigate how the Japanese media conveyed the country’s foreign aid policy and analyse how framing biases in the news differ depending on which language (either Japanese or English) was used in the broadcasts. Design/methodology/approach This study uses a qualitative single case-study design and conducts a content analysis. The study uses news videos about the fifth Tokyo International Conference on African Development aired on YouTube by the Japanese media using Japanese and English. Findings The findings reveal subtle but notable differences in the patterns of the framing biases in the Japanese media’s news aired in Japanese intended for the domestic audience, and in the news on the same topic broadcast in English to the international audience. Research limitations/implications The limitation of the study is the rather small data set used for the single case study of one event. Social implications Framing biases could lead the general public in a monolingual society to a more skewed view of their government’s policy and its activities abroad. This could be an obstacle to developing a common ground for global issues and cross-border policy agendas. Originality/value The study explores an under-researched function of language in international affairs. It highlights how the mass media in a non-English-speaking country uses a dual approach to framing news while addressing different audiences. To the best of the author’s knowledge, the context that this paper deals with is novel because there are limited studies on the nexus between the influence of language choices and media logic in the field of international business.
{"title":"Framing biases and language choices: how the Japanese media broadcast foreign aid policy for Africa","authors":"","doi":"10.1108/cpoib-04-2022-0023","DOIUrl":"https://doi.org/10.1108/cpoib-04-2022-0023","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate how the Japanese media conveyed the country’s foreign aid policy and analyse how framing biases in the news differ depending on which language (either Japanese or English) was used in the broadcasts.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses a qualitative single case-study design and conducts a content analysis. The study uses news videos about the fifth Tokyo International Conference on African Development aired on YouTube by the Japanese media using Japanese and English.\u0000\u0000\u0000Findings\u0000The findings reveal subtle but notable differences in the patterns of the framing biases in the Japanese media’s news aired in Japanese intended for the domestic audience, and in the news on the same topic broadcast in English to the international audience.\u0000\u0000\u0000Research limitations/implications\u0000The limitation of the study is the rather small data set used for the single case study of one event.\u0000\u0000\u0000Social implications\u0000Framing biases could lead the general public in a monolingual society to a more skewed view of their government’s policy and its activities abroad. This could be an obstacle to developing a common ground for global issues and cross-border policy agendas.\u0000\u0000\u0000Originality/value\u0000The study explores an under-researched function of language in international affairs. It highlights how the mass media in a non-English-speaking country uses a dual approach to framing news while addressing different audiences. To the best of the author’s knowledge, the context that this paper deals with is novel because there are limited studies on the nexus between the influence of language choices and media logic in the field of international business.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43478169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-16DOI: 10.1108/cpoib-01-2021-0001
Amrita Saha, Filippo Bontadini, Alistair Cowan
Purpose The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda, Kenya, Uganda and Tanzania. It aims to analyse the role of SSTT in providing support to targeted sectors. Design/methodology/approach The paper examines SSTT, focusing on India and East Africa over a specific period (2000–2016) of its emergence, and extends the public sponsorship literature in international business (IB) to better understand the relationship between SSTT and value addition – applying to a particular case study of SSTT interventions in spices. Findings The paper highlights SSTT as a pathway to support value addition in global value chains (GVCs). Trade between India and East African countries has grown, with three developments over the period of analysis in particular: shifting trade patterns, growing share of intermediate goods trade and differences in GVC insertion. However, East African exports are largely of lower value. Capacity building to support processing capability and thriving markets can encourage greater value addition. Preliminary findings suggest early gains at the margins, as SSTT interventions have been focusing on capacity boosting with buffering and bridging mechanisms for increased volume of trade. Moving up the value chain however requires that specific value-enhancing activities continue to be targeted, building on regional capacities. Our high-level case study for spices suggests that activities are starting to have a positive effect; however, more focus is needed to specifically target value creation before export and in particular higher levels of processing. Practical implications While findings are preliminary, policy implications emerge to guide SSTT interventions. There is capacity for building higher value-added supply chains as is evident among East African countries that trade with each other – future SSTT programmes could tap into this and help build capacity in these higher-value value chains. Future SSTT programmes can take a comprehensive approach by aiming at interventions at key points of the value chain, and especially at points that facilitate higher value addition than initial processing. An example is that Ethiopia and Rwanda are likely to benefit from an expanded spice industry, but the next phase should be towards building processing for value-addition components of the value chain, such as through trade policies, incentivising exporters to add value to items before export. From a development perspective, more analysis needs to be done on the value chain itself – for instance, trade facilitation measures to help processers engage in value chains and to access investments for increasing value add activities. (iv), Future research should examine more closely the development impacts of SSTT, namely, the connection between increased trade, local job creation and sustained innovation, as it is these tangib
{"title":"Moving up the value chain with South-South cooperation for trade and technology? An analysis of India’s trade with East Africa","authors":"Amrita Saha, Filippo Bontadini, Alistair Cowan","doi":"10.1108/cpoib-01-2021-0001","DOIUrl":"https://doi.org/10.1108/cpoib-01-2021-0001","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda, Kenya, Uganda and Tanzania. It aims to analyse the role of SSTT in providing support to targeted sectors.\u0000\u0000\u0000Design/methodology/approach\u0000The paper examines SSTT, focusing on India and East Africa over a specific period (2000–2016) of its emergence, and extends the public sponsorship literature in international business (IB) to better understand the relationship between SSTT and value addition – applying to a particular case study of SSTT interventions in spices.\u0000\u0000\u0000Findings\u0000The paper highlights SSTT as a pathway to support value addition in global value chains (GVCs). Trade between India and East African countries has grown, with three developments over the period of analysis in particular: shifting trade patterns, growing share of intermediate goods trade and differences in GVC insertion. However, East African exports are largely of lower value. Capacity building to support processing capability and thriving markets can encourage greater value addition. Preliminary findings suggest early gains at the margins, as SSTT interventions have been focusing on capacity boosting with buffering and bridging mechanisms for increased volume of trade. Moving up the value chain however requires that specific value-enhancing activities continue to be targeted, building on regional capacities. Our high-level case study for spices suggests that activities are starting to have a positive effect; however, more focus is needed to specifically target value creation before export and in particular higher levels of processing.\u0000\u0000\u0000Practical implications\u0000While findings are preliminary, policy implications emerge to guide SSTT interventions. There is capacity for building higher value-added supply chains as is evident among East African countries that trade with each other – future SSTT programmes could tap into this and help build capacity in these higher-value value chains. Future SSTT programmes can take a comprehensive approach by aiming at interventions at key points of the value chain, and especially at points that facilitate higher value addition than initial processing. An example is that Ethiopia and Rwanda are likely to benefit from an expanded spice industry, but the next phase should be towards building processing for value-addition components of the value chain, such as through trade policies, incentivising exporters to add value to items before export. From a development perspective, more analysis needs to be done on the value chain itself – for instance, trade facilitation measures to help processers engage in value chains and to access investments for increasing value add activities. (iv), Future research should examine more closely the development impacts of SSTT, namely, the connection between increased trade, local job creation and sustained innovation, as it is these tangib","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45216181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-11DOI: 10.1108/cpoib-01-2021-0012
Michael Jakobsen, Verner Worm, S. Horak
Purpose This paper aims to introduce the concept of compassion to the field of international business studies. As international business activities continuously intensify and hence generate a work environment characterized by cultural heterogeneity and pluralism, the notion of compassion in a cross-cultural context can be regarded a key skill for employees in internationally operating firms to enable coping with potential cross-cultural conflicts. Design/methodology/approach In this narrative-oriented type of review, the authors discuss compassion in a cross-cultural context by drawing on the literature in the management and international business studies. By connecting prior research on compassion with the typical research interests in the IB domain, the authors identify and define potential future research foci for a research agenda centering on the role that cross-cultural compassion plays. Findings The authors argue that the conventional approach to learning about other national cultures, their value and norm systems, needs to be complemented by the acquisition of compassion skills. In todays culturally diverse business environment where employees increasingly work in virtual teams, cultural complexity is hardly manageable alone by developing expert knowledge about respective cultural contexts to prevent cross-cultural conflicts. Originality/value By drawing on extant research on compassion conducted in neighboring disciplines of the social sciences, the authors conceptualize compassion in the context of international business research. Because compassion in a cross-cultural context is new to international business research, this study suggests directions for future research consisting of four research streams to guide future research on compassion in a cross-cultural context in international business studies.
{"title":"Compassion in the international business studies – prospects for future research","authors":"Michael Jakobsen, Verner Worm, S. Horak","doi":"10.1108/cpoib-01-2021-0012","DOIUrl":"https://doi.org/10.1108/cpoib-01-2021-0012","url":null,"abstract":"\u0000Purpose\u0000This paper aims to introduce the concept of compassion to the field of international business studies. As international business activities continuously intensify and hence generate a work environment characterized by cultural heterogeneity and pluralism, the notion of compassion in a cross-cultural context can be regarded a key skill for employees in internationally operating firms to enable coping with potential cross-cultural conflicts.\u0000\u0000\u0000Design/methodology/approach\u0000In this narrative-oriented type of review, the authors discuss compassion in a cross-cultural context by drawing on the literature in the management and international business studies. By connecting prior research on compassion with the typical research interests in the IB domain, the authors identify and define potential future research foci for a research agenda centering on the role that cross-cultural compassion plays.\u0000\u0000\u0000Findings\u0000The authors argue that the conventional approach to learning about other national cultures, their value and norm systems, needs to be complemented by the acquisition of compassion skills. In todays culturally diverse business environment where employees increasingly work in virtual teams, cultural complexity is hardly manageable alone by developing expert knowledge about respective cultural contexts to prevent cross-cultural conflicts.\u0000\u0000\u0000Originality/value\u0000By drawing on extant research on compassion conducted in neighboring disciplines of the social sciences, the authors conceptualize compassion in the context of international business research. Because compassion in a cross-cultural context is new to international business research, this study suggests directions for future research consisting of four research streams to guide future research on compassion in a cross-cultural context in international business studies.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49375319","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-05DOI: 10.1108/cpoib-01-2023-139
Claudine Gaibrois, Philippe Lecomte, Mehdi Boussebaa, M. Śliwa
{"title":"Guest editorial: Introduction – critical perspectives on language in international business","authors":"Claudine Gaibrois, Philippe Lecomte, Mehdi Boussebaa, M. Śliwa","doi":"10.1108/cpoib-01-2023-139","DOIUrl":"https://doi.org/10.1108/cpoib-01-2023-139","url":null,"abstract":"","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47611287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-05DOI: 10.1108/cpoib-01-2023-140
Frederick Ahen
{"title":"Book review","authors":"Frederick Ahen","doi":"10.1108/cpoib-01-2023-140","DOIUrl":"https://doi.org/10.1108/cpoib-01-2023-140","url":null,"abstract":"","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47104072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-14DOI: 10.1108/cpoib-05-2022-0048
M. Forsgren, M. Yamin
Purpose The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field. Design/methodology/approach A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of “multinational advantage”. These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact. Findings Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors. Originality/value The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.
{"title":"The MNE as the “crown of creation”?: a commentary on mainstream theories of multinational enterprises","authors":"M. Forsgren, M. Yamin","doi":"10.1108/cpoib-05-2022-0048","DOIUrl":"https://doi.org/10.1108/cpoib-05-2022-0048","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field.\u0000\u0000\u0000Design/methodology/approach\u0000A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of “multinational advantage”. These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.\u0000\u0000\u0000Findings\u0000Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors.\u0000\u0000\u0000Originality/value\u0000The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45284771","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-01DOI: 10.1108/cpoib-02-2022-0006
J. Gammelgaard, Rajesh Kumar
Purpose The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal legitimacy crises. This paper discusses how pragmatic and moral legitimacy crises affect relational social capital. Design/methodology/approach The paper is conceptual. Findings This paper highlights the importance of internal legitimacy as well as the motivational orientations of headquarters and subsidiaries for the functioning of MNEs. Internal legitimacy management is crucial for building relational social capital. This study proposes that legitimacy crises are particularly likely to occur in cases of goal incongruence between headquarters and subsidiaries. This study postulates that organizations with a promotion-oriented institutional logic are concerned by the absence of pragmatic legitimacy processes. In contrast, given their aim of protecting the status quo, prevention-oriented institutional logic MNEs are concerned about the absence of moral legitimacy. Originality/value To the best of the authors’ knowledge, this paper is the first to explore the relationship between regulatory focus, internal legitimacy and relational social capital.
{"title":"Internal legitimacy crises: the roles of the regulatory focus and relational social capital of headquarters and subsidiaries","authors":"J. Gammelgaard, Rajesh Kumar","doi":"10.1108/cpoib-02-2022-0006","DOIUrl":"https://doi.org/10.1108/cpoib-02-2022-0006","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal legitimacy crises. This paper discusses how pragmatic and moral legitimacy crises affect relational social capital.\u0000\u0000\u0000Design/methodology/approach\u0000The paper is conceptual.\u0000\u0000\u0000Findings\u0000This paper highlights the importance of internal legitimacy as well as the motivational orientations of headquarters and subsidiaries for the functioning of MNEs. Internal legitimacy management is crucial for building relational social capital. This study proposes that legitimacy crises are particularly likely to occur in cases of goal incongruence between headquarters and subsidiaries. This study postulates that organizations with a promotion-oriented institutional logic are concerned by the absence of pragmatic legitimacy processes. In contrast, given their aim of protecting the status quo, prevention-oriented institutional logic MNEs are concerned about the absence of moral legitimacy.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this paper is the first to explore the relationship between regulatory focus, internal legitimacy and relational social capital.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":"1 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62054492","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-28DOI: 10.1108/cpoib-11-2021-0091
Katerina Kampouri, Yannis A. Hajidimitriou
Purpose This study aims to fulfil a twofold purpose: first, to discuss the changes and unique challenges that family firms (FFs) face during the COVID-19 pandemic and/or they will face in the post-COVID era, and second, to reflect on emerging research directions and contextual factors that should be taken into account in future explorations for the benefit of FF scholars who will study post-COVID FF internationalisation. Design/methodology/approach To address the twofold purpose of the study, we conduct an integrative review of 31 peer-reviewed journal articles in the international business (IB) and FF literature on COVID-19, FFs and internationalisation. Findings COVID-19 brought changes in IB strategies, IB relationships and human resource management. In responding and/or adapting to those changes, during and post-COVID, FFs face and are expected to face challenges that mainly refer to FFs’ transition to digitalisation and the simultaneous preservation of socio-emotional wealth dimensions while maintaining their international presence. The authors suggest that future research explores the role of digitalisation in achieving FFs’ internationalisation, IB relationship building activities and training and leading international employees. Further contextual factors (e.g. succession issues, family structures) should also be accounted for when exploring such post-COVID IB phenomena. Originality/value This study comprises an initial attempt to encompass the interface of FF internationalisation and COVID-19. It also proposes research directions that are likely to set the stage in FFs’ post-COVID internationalisation research.
{"title":"COVID and challenges in the context of family firms internationalisation: a review and emerging research pathways","authors":"Katerina Kampouri, Yannis A. Hajidimitriou","doi":"10.1108/cpoib-11-2021-0091","DOIUrl":"https://doi.org/10.1108/cpoib-11-2021-0091","url":null,"abstract":"\u0000Purpose\u0000This study aims to fulfil a twofold purpose: first, to discuss the changes and unique challenges that family firms (FFs) face during the COVID-19 pandemic and/or they will face in the post-COVID era, and second, to reflect on emerging research directions and contextual factors that should be taken into account in future explorations for the benefit of FF scholars who will study post-COVID FF internationalisation.\u0000\u0000\u0000Design/methodology/approach\u0000To address the twofold purpose of the study, we conduct an integrative review of 31 peer-reviewed journal articles in the international business (IB) and FF literature on COVID-19, FFs and internationalisation.\u0000\u0000\u0000Findings\u0000COVID-19 brought changes in IB strategies, IB relationships and human resource management. In responding and/or adapting to those changes, during and post-COVID, FFs face and are expected to face challenges that mainly refer to FFs’ transition to digitalisation and the simultaneous preservation of socio-emotional wealth dimensions while maintaining their international presence. The authors suggest that future research explores the role of digitalisation in achieving FFs’ internationalisation, IB relationship building activities and training and leading international employees. Further contextual factors (e.g. succession issues, family structures) should also be accounted for when exploring such post-COVID IB phenomena.\u0000\u0000\u0000Originality/value\u0000This study comprises an initial attempt to encompass the interface of FF internationalisation and COVID-19. It also proposes research directions that are likely to set the stage in FFs’ post-COVID internationalisation research.\u0000","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44322461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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