Pub Date : 2021-06-07DOI: 10.1108/MBR-02-2021-0011
Stephen Brammer, Giulio Nardella, Irina Surdu
Purpose This paper aims to put forward a definition of corporate social irresponsibility (CSI) which is relevant to the study of complex organizations and in particular, the multinational enterprise (MNE). This paper then offers a framework as a foundation to discuss the institutional complexity of CSI to aid international business (IB) scholars, practitioners and policymakers achieve a clearer understanding of the mechanisms that may penalize and subsequently deter MNE irresponsibility. Design/methodology/approach In presenting the approaches taken by social regulation researchers and IB policy scholars to understand MNE irresponsibility, this paper proposes a definition of CSI and explicates the various mechanisms associated with deterring MNEs from behaving irresponsibly. Findings Therefore, how can MNEs be deterred from behaving irresponsibly? To further the research agenda concerning CSI in IB, far less common are a definition of CSI relevant to the complex IB context; and a framework that explicates both the legal and social components of CSI, particularly as they unfold in a complex, diverse and often divergent institutional landscape. Overcoming these two primary obstacles is important because when complexities associated with CSI emerge, researchers need to be able to ascertain and expound upon what they are observing so that comparisons can be made and more MNE CSI research can be accrued over time. Research limitations/implications To help the development of future research, we offered a more precise definition of CSI, one which is more relevant to the study of the MNE and the complex contemporary IB environment. By embracing complexities, this paper also outlines an institutional complexity approach, one which highlights both the role of formal and informal regulatory institutions. Though IB has traditionally focused on the role of formal regulation, there is much more to be unearthed by exploring the additional and concurrent influence of social regulatory institutions. Practical implications There is a high level of heterogeneity in the motivations and modes used by MNEs to enter international markets, which likely influence efforts made by these firms to adapt to different types of formal and social institutional pressures. When firms invest significantly in a market, they have a greater economic dependence in that market and institutions have a greater opportunity to exert pressures. For instance, foreign direct investment requires a higher level of (longer-term) commitment, transfer of capital, exchange of expertise and learning, meaning that firms depend much more on local authorities to perform in the market and accomplish their goals. Social implications Enabled by new technologies and, particularly, social media platforms, stakeholders can now engage in organized forms of regulatory activities, as is evident in the lesbian, gay, bisexual, transgender, queer, black lives matter and gender equality social activist mo
{"title":"Defining and deterring corporate social irresponsibility: embracing the institutional complexity of international business","authors":"Stephen Brammer, Giulio Nardella, Irina Surdu","doi":"10.1108/MBR-02-2021-0011","DOIUrl":"https://doi.org/10.1108/MBR-02-2021-0011","url":null,"abstract":"\u0000Purpose\u0000This paper aims to put forward a definition of corporate social irresponsibility (CSI) which is relevant to the study of complex organizations and in particular, the multinational enterprise (MNE). This paper then offers a framework as a foundation to discuss the institutional complexity of CSI to aid international business (IB) scholars, practitioners and policymakers achieve a clearer understanding of the mechanisms that may penalize and subsequently deter MNE irresponsibility.\u0000\u0000\u0000Design/methodology/approach\u0000In presenting the approaches taken by social regulation researchers and IB policy scholars to understand MNE irresponsibility, this paper proposes a definition of CSI and explicates the various mechanisms associated with deterring MNEs from behaving irresponsibly.\u0000\u0000\u0000Findings\u0000Therefore, how can MNEs be deterred from behaving irresponsibly? To further the research agenda concerning CSI in IB, far less common are a definition of CSI relevant to the complex IB context; and a framework that explicates both the legal and social components of CSI, particularly as they unfold in a complex, diverse and often divergent institutional landscape. Overcoming these two primary obstacles is important because when complexities associated with CSI emerge, researchers need to be able to ascertain and expound upon what they are observing so that comparisons can be made and more MNE CSI research can be accrued over time.\u0000\u0000\u0000Research limitations/implications\u0000To help the development of future research, we offered a more precise definition of CSI, one which is more relevant to the study of the MNE and the complex contemporary IB environment. By embracing complexities, this paper also outlines an institutional complexity approach, one which highlights both the role of formal and informal regulatory institutions. Though IB has traditionally focused on the role of formal regulation, there is much more to be unearthed by exploring the additional and concurrent influence of social regulatory institutions.\u0000\u0000\u0000Practical implications\u0000There is a high level of heterogeneity in the motivations and modes used by MNEs to enter international markets, which likely influence efforts made by these firms to adapt to different types of formal and social institutional pressures. When firms invest significantly in a market, they have a greater economic dependence in that market and institutions have a greater opportunity to exert pressures. For instance, foreign direct investment requires a higher level of (longer-term) commitment, transfer of capital, exchange of expertise and learning, meaning that firms depend much more on local authorities to perform in the market and accomplish their goals.\u0000\u0000\u0000Social implications\u0000Enabled by new technologies and, particularly, social media platforms, stakeholders can now engage in organized forms of regulatory activities, as is evident in the lesbian, gay, bisexual, transgender, queer, black lives matter and gender equality social activist mo","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2021-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43980245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-02-15DOI: 10.1108/MBR-10-2020-0200
T. Yoshikawa, M. Nippa, G. Chua
Purpose By reviewing prior scholarly corporate governance (CG) literature and a review of more recent stakeholder studies, this paper aims to examine the extent to which stakeholders and their interests have gained in importance in recent years compared to the shareholder approach, which is dominant in many national economies and suggest future research opportunities. Design/methodology/approach This study conducts a literature review to examine major findings in prior studies. Findings The reviews and analyses provide support for a formal and informal convergence of CG systems towards more stakeholder-oriented elements globally. In general, at the institutional and firm levels, there are remarkable shifts to adopt stakeholder-oriented rules and practices. However, there is limited evidence that all these trends will actually lead to full convergence towards a single stakeholder-oriented governance model. Originality/value The paper offers an extensive summary of prior studies that investigate the impact of CG on firm stakeholder-orientation and social performance. Based on the review, this study suggests promising research directions.
{"title":"Global shift towards stakeholder-oriented corporate governance? Evidence from the scholarly literature and future research opportunities","authors":"T. Yoshikawa, M. Nippa, G. Chua","doi":"10.1108/MBR-10-2020-0200","DOIUrl":"https://doi.org/10.1108/MBR-10-2020-0200","url":null,"abstract":"\u0000Purpose\u0000By reviewing prior scholarly corporate governance (CG) literature and a review of more recent stakeholder studies, this paper aims to examine the extent to which stakeholders and their interests have gained in importance in recent years compared to the shareholder approach, which is dominant in many national economies and suggest future research opportunities.\u0000\u0000\u0000Design/methodology/approach\u0000This study conducts a literature review to examine major findings in prior studies.\u0000\u0000\u0000Findings\u0000The reviews and analyses provide support for a formal and informal convergence of CG systems towards more stakeholder-oriented elements globally. In general, at the institutional and firm levels, there are remarkable shifts to adopt stakeholder-oriented rules and practices. However, there is limited evidence that all these trends will actually lead to full convergence towards a single stakeholder-oriented governance model.\u0000\u0000\u0000Originality/value\u0000The paper offers an extensive summary of prior studies that investigate the impact of CG on firm stakeholder-orientation and social performance. Based on the review, this study suggests promising research directions.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2021-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44786991","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-02-08DOI: 10.1108/MBR-03-2020-0054
Mike Szymanski, I. Alon, K. Kalra
Purpose In this study, micro-foundations of strategy as the theoretical framework to study the effect of managers’ individual characteristics on multinational team performance are adopted. In particular, the purpose of this paper is to study managers’ multilingual communication abilities and multicultural background, and their role in, respectively, effectively reconfiguring team human assets and sensing cognitively distant opportunities and threats. Design/methodology/approach This study uses national football teams competing in national and international competitions and their coaches’ characteristics as the data set to test the theory. Using random coefficient modeling and ordinary least square regression, this paper analyzes two samples of 222 and 79 teams and found that both these characteristics contribute to team performance; however, their effects differ depending on the team environment. Findings Multicultural managers contribute positively to team performance only when the team is operating in a highly diverse environment, their effect is not statistically significant in homogeneous environments. In less diverse environments, it is the multilingual manager who can improve team performance through more efficient communication and greater effects of leadership on the team. Originality/value Managers’ characteristics such as their multicultural background and multilingual capabilities affect team performance. In particular, these effects come into play in highly diverse and international settings. Micro-foundation literature is advised to focus on the internationalization and multicultural backgrounds of managers as a precursor for organizational international performance.
{"title":"Multilingual and multicultural managers’ effects on team performance: insights from professional football teams","authors":"Mike Szymanski, I. Alon, K. Kalra","doi":"10.1108/MBR-03-2020-0054","DOIUrl":"https://doi.org/10.1108/MBR-03-2020-0054","url":null,"abstract":"\u0000Purpose\u0000In this study, micro-foundations of strategy as the theoretical framework to study the effect of managers’ individual characteristics on multinational team performance are adopted. In particular, the purpose of this paper is to study managers’ multilingual communication abilities and multicultural background, and their role in, respectively, effectively reconfiguring team human assets and sensing cognitively distant opportunities and threats.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses national football teams competing in national and international competitions and their coaches’ characteristics as the data set to test the theory. Using random coefficient modeling and ordinary least square regression, this paper analyzes two samples of 222 and 79 teams and found that both these characteristics contribute to team performance; however, their effects differ depending on the team environment.\u0000\u0000\u0000Findings\u0000Multicultural managers contribute positively to team performance only when the team is operating in a highly diverse environment, their effect is not statistically significant in homogeneous environments. In less diverse environments, it is the multilingual manager who can improve team performance through more efficient communication and greater effects of leadership on the team.\u0000\u0000\u0000Originality/value\u0000Managers’ characteristics such as their multicultural background and multilingual capabilities affect team performance. In particular, these effects come into play in highly diverse and international settings. Micro-foundation literature is advised to focus on the internationalization and multicultural backgrounds of managers as a precursor for organizational international performance.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2021-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47533339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-23DOI: 10.1108/mbr-01-2020-0013
Y. Yeo, S. H. Lee
Purpose The purpose of this paper is to examine how the risk of war aroused by North Korea’s threatening actions trigger strategic responses from US multinational enterprises (MNEs) operating in South Korea. The authors compare two competing perspectives of real options and risk diversification to see which prevails when US MNEs are facing risk of war. Design/methodology/approach The authors hand collected news articles regarding North Korea’s threatening actions that may trigger strategic responses from MNEs operating in South Korea. The authors use archival data of US MNEs to verify our results. Findings Empirical tests of the two competing perspectives reveal that US MNEs adopt the risk diversification strategy when threatened by the risk of war. However, as MNEs have more available foreign markets outside the host country that is at risk of war, MNEs tend to take an operational flexibility approach more seriously and shift their productions to the remaining global operations. The ownership structure of the subsidiary does not appear to have significant effect on US MNEs’ strategic risk management. Originality/value This paper compares two perspectives, namely, real options and risk diversification, to observe how US MNEs treat their subsidiaries when facing risk of war in South Korea.
{"title":"Real options flexibility or risk diversification: risk management of US MNEs when facing risk of war","authors":"Y. Yeo, S. H. Lee","doi":"10.1108/mbr-01-2020-0013","DOIUrl":"https://doi.org/10.1108/mbr-01-2020-0013","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to examine how the risk of war aroused by North Korea’s threatening actions trigger strategic responses from US multinational enterprises (MNEs) operating in South Korea. The authors compare two competing perspectives of real options and risk diversification to see which prevails when US MNEs are facing risk of war.\u0000\u0000\u0000Design/methodology/approach\u0000The authors hand collected news articles regarding North Korea’s threatening actions that may trigger strategic responses from MNEs operating in South Korea. The authors use archival data of US MNEs to verify our results.\u0000\u0000\u0000Findings\u0000Empirical tests of the two competing perspectives reveal that US MNEs adopt the risk diversification strategy when threatened by the risk of war. However, as MNEs have more available foreign markets outside the host country that is at risk of war, MNEs tend to take an operational flexibility approach more seriously and shift their productions to the remaining global operations. The ownership structure of the subsidiary does not appear to have significant effect on US MNEs’ strategic risk management.\u0000\u0000\u0000Originality/value\u0000This paper compares two perspectives, namely, real options and risk diversification, to observe how US MNEs treat their subsidiaries when facing risk of war in South Korea.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2020-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48462915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-14DOI: 10.1108/MBR-07-2020-0153
A. Arslan, Ismail Gölgeci, Zaheer Khan, Omar Al‐Tabbaa, P. Hurmelinna-Laukkanen
Purpose The purpose of this paper is to examine the important role of cross-sector partnerships and collaboration in global emergency management, relevant in situations such as the ongoing COVID-19 pandemic and grand global challenges. Design/methodology/approach The paper utilizes exploratory historical methods and examines cross-sector partnerships from three key emerging markets – Pakistan, Turkey and Nigeria. The context of the emerging markets is important given the institutional fragility such markets encountered. Findings The authors offer a conceptual discussion that explicates the vital role of such partnerships in global emergencies. The authors also highlight the instrumental role of adaptive learning in cross-sector partnerships, which can help multiple stakeholders create and deliver value in response to an emergency like a global health pandemic caused by the COVID-19. Along with the conceptual discussion, the authors further offer practical examples of cross-sector partnerships in emerging economies of Pakistan, Turkey, and Nigeria – undertaken in response to the recent pandemic – emphasizing that such partnerships are crucial to mitigate the emergencies and their consequences on society. Finally, this paper offers theoretical and practical implications for cross-sector collaboration and partnerships in response to the global crisis. Research limitations/implications This research is limited to emerging markets context and further research is needed on this important topic. Originality/value This paper is relevant given the current global pandemic caused by the COVID-19. There are relatively limited research studies on the cross-sector partnerships and their role in global emergencies, grand challenges and global crisis, thus this paper offers important insights on cross-sector partnerships and their value creation in global crisis situations.
{"title":"Adaptive learning in cross-sector collaboration during global emergency: conceptual insights in the context of COVID-19 pandemic","authors":"A. Arslan, Ismail Gölgeci, Zaheer Khan, Omar Al‐Tabbaa, P. Hurmelinna-Laukkanen","doi":"10.1108/MBR-07-2020-0153","DOIUrl":"https://doi.org/10.1108/MBR-07-2020-0153","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to examine the important role of cross-sector partnerships and collaboration in global emergency management, relevant in situations such as the ongoing COVID-19 pandemic and grand global challenges.\u0000\u0000\u0000Design/methodology/approach\u0000The paper utilizes exploratory historical methods and examines cross-sector partnerships from three key emerging markets – Pakistan, Turkey and Nigeria. The context of the emerging markets is important given the institutional fragility such markets encountered.\u0000\u0000\u0000Findings\u0000The authors offer a conceptual discussion that explicates the vital role of such partnerships in global emergencies. The authors also highlight the instrumental role of adaptive learning in cross-sector partnerships, which can help multiple stakeholders create and deliver value in response to an emergency like a global health pandemic caused by the COVID-19. Along with the conceptual discussion, the authors further offer practical examples of cross-sector partnerships in emerging economies of Pakistan, Turkey, and Nigeria – undertaken in response to the recent pandemic – emphasizing that such partnerships are crucial to mitigate the emergencies and their consequences on society. Finally, this paper offers theoretical and practical implications for cross-sector collaboration and partnerships in response to the global crisis.\u0000\u0000\u0000Research limitations/implications\u0000This research is limited to emerging markets context and further research is needed on this important topic.\u0000\u0000\u0000Originality/value\u0000This paper is relevant given the current global pandemic caused by the COVID-19. There are relatively limited research studies on the cross-sector partnerships and their role in global emergencies, grand challenges and global crisis, thus this paper offers important insights on cross-sector partnerships and their value creation in global crisis situations.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":"1 1","pages":""},"PeriodicalIF":2.7,"publicationDate":"2020-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/MBR-07-2020-0153","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43064637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-10-23DOI: 10.1108/mbr-11-2019-0144
Bruno Amann, J. Jaussaud, J. Schaaper
Purpose Large multinational companies (MNCs) are strongly formalized, often standardized and complex with multiple hierarchical levels. Over the past few decades, MNCs have strengthened their coordination and control systems by creating regional headquarters (RHQs). This study aims to investigate how MNCs rearticulate control dimensions at RHQs, to coordinate and exert control over subsidiaries in the Asia-Pacific region. Design/methodology/approach Based on a survey of 86 French MNCs in the Asia-Pacific region, this study applies a structural equation model to determine RHQs’ roles in the field of regional decision-making, coordination and control. Findings Large MNCs, with a significant presence in Asia, transfer coordination and control to RHQs, in a way that leads us to propose the use of the expression “regio-centralization.” RHQs become socialization hubs, where most regional decisions are taken and where international managers meet. MNCs mobilize at the same time expatriates, short-term assignees and local managers who intensively interact at RHQs. Thus, informal control at RHQs increases, partly substituting formal control by HQs. Smaller MNCs, without RHQs, on the contrary, base their control and coordination on the formalization of HQs-subsidiary relations, especially through strong reporting, in combination with centralized decision-making at HQs. Research limitations/implications This study is based on MNCs from one specific country, France, and focuses only on the dynamic Asia-Pacific host region. Coordination and control in less dynamic regions may reveal different results. Originality/value This study leads to a better understanding of how large MNCs reorganize dispersed activities in the Asia-Pacific region by creating RHQs, where important control and coordination functions are relocated.
{"title":"The bridging role of regional headquarters. Multinational companies in the Asia-Pacific region","authors":"Bruno Amann, J. Jaussaud, J. Schaaper","doi":"10.1108/mbr-11-2019-0144","DOIUrl":"https://doi.org/10.1108/mbr-11-2019-0144","url":null,"abstract":"\u0000Purpose\u0000Large multinational companies (MNCs) are strongly formalized, often standardized and complex with multiple hierarchical levels. Over the past few decades, MNCs have strengthened their coordination and control systems by creating regional headquarters (RHQs). This study aims to investigate how MNCs rearticulate control dimensions at RHQs, to coordinate and exert control over subsidiaries in the Asia-Pacific region.\u0000\u0000\u0000Design/methodology/approach\u0000Based on a survey of 86 French MNCs in the Asia-Pacific region, this study applies a structural equation model to determine RHQs’ roles in the field of regional decision-making, coordination and control.\u0000\u0000\u0000Findings\u0000Large MNCs, with a significant presence in Asia, transfer coordination and control to RHQs, in a way that leads us to propose the use of the expression “regio-centralization.” RHQs become socialization hubs, where most regional decisions are taken and where international managers meet. MNCs mobilize at the same time expatriates, short-term assignees and local managers who intensively interact at RHQs. Thus, informal control at RHQs increases, partly substituting formal control by HQs. Smaller MNCs, without RHQs, on the contrary, base their control and coordination on the formalization of HQs-subsidiary relations, especially through strong reporting, in combination with centralized decision-making at HQs.\u0000\u0000\u0000Research limitations/implications\u0000This study is based on MNCs from one specific country, France, and focuses only on the dynamic Asia-Pacific host region. Coordination and control in less dynamic regions may reveal different results.\u0000\u0000\u0000Originality/value\u0000This study leads to a better understanding of how large MNCs reorganize dispersed activities in the Asia-Pacific region by creating RHQs, where important control and coordination functions are relocated.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2020-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/mbr-11-2019-0144","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46891242","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-08-01DOI: 10.5465/ambpp.2020.14469abstract
Gregory Theyel, Kay H. Hofmann
Purpose This paper aims to investigate the strategic consequences of manufacturing location decisions, with a focus on understanding the link between collocating manufacturing with other value chain activities, via reshoring or retaining and organizational agility. Design/methodology/approach The paper uses qualitative data from 115 interviews with executives from UK high value manufacturing companies to explore the recent phenomenon of reshoring and the strategic effects of manufacturing location. Findings The location of manufacturing is operationally and strategically important for multinational companies. The spatial dispersion of manufacturing is determined by firm-specific and external factors, both of which are subject to constant change. The analysis shows that concentrating on manufacturing in their home countries enables firms to increase organizational agility and stimulate innovation. Better integration with and more extensive collaboration between related value chain activities, such as research and development, sales and marketing, leads to higher flexibility, speed and responsiveness to customer requirements. However, under certain conditions, firms also continue to benefit from the known advantages of offshoring. Originality/value This research sheds light on possible strategic downsides of global value chains, characterized by dispersed activities and intermitted processes. The results provide evidence that retaining manufacturing or bringing back manufacturing operations to a company’s home country can increase organizational flexibility, speed, adaptability, innovativeness and responsiveness to customer requirements. As these capabilities are critical for long-term survival, especially in dynamic environments, firms need to review their global factory configurations and determine whether the short-term advantages of foreign locations continue to justify offshoring practices.
{"title":"Manufacturing location decisions and organizational agility","authors":"Gregory Theyel, Kay H. Hofmann","doi":"10.5465/ambpp.2020.14469abstract","DOIUrl":"https://doi.org/10.5465/ambpp.2020.14469abstract","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the strategic consequences of manufacturing location decisions, with a focus on understanding the link between collocating manufacturing with other value chain activities, via reshoring or retaining and organizational agility.\u0000\u0000\u0000Design/methodology/approach\u0000The paper uses qualitative data from 115 interviews with executives from UK high value manufacturing companies to explore the recent phenomenon of reshoring and the strategic effects of manufacturing location.\u0000\u0000\u0000Findings\u0000The location of manufacturing is operationally and strategically important for multinational companies. The spatial dispersion of manufacturing is determined by firm-specific and external factors, both of which are subject to constant change. The analysis shows that concentrating on manufacturing in their home countries enables firms to increase organizational agility and stimulate innovation. Better integration with and more extensive collaboration between related value chain activities, such as research and development, sales and marketing, leads to higher flexibility, speed and responsiveness to customer requirements. However, under certain conditions, firms also continue to benefit from the known advantages of offshoring.\u0000\u0000\u0000Originality/value\u0000This research sheds light on possible strategic downsides of global value chains, characterized by dispersed activities and intermitted processes. The results provide evidence that retaining manufacturing or bringing back manufacturing operations to a company’s home country can increase organizational flexibility, speed, adaptability, innovativeness and responsiveness to customer requirements. As these capabilities are critical for long-term survival, especially in dynamic environments, firms need to review their global factory configurations and determine whether the short-term advantages of foreign locations continue to justify offshoring practices.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2020-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45523758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-10DOI: 10.1108/mbr-04-2019-0031
David Freund, Rob Lee, Heinz-Josef Tüselmann, Q. Cao
Purpose The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of international high-tech small- and medium-sized enterprises (SMEs). Design/methodology/approach Data are drawn from the two largest and most authoritative German Federal Government census-databases of biotech and nanotech SMEs. A structured survey questionnaire was administered and regression analysis adopted. Findings This study demonstrates weak network ties in the host country and developing absorptive capacity produce a combined effect that positively influences international high-tech SMEs innovative foreign knowledge inflows. Also, host country weak network ties and absorptive capacity when considered separately, each respectively, positively influence innovative foreign knowledge inflows. Practical implications The results help inform key personnel in international high-tech SMEs about the relevance of host country weak network ties and absorptive capacity for foreign knowledge inflows. In addition, the results help policymakers and think-tanks to promote tailored advice and guidance e.g. those policymakers implementing the EU Entrepreneurship 2020 Action Plan. Originality/value There is a recent call in the literature to combine network theory and absorptive capacity theory to better explain knowledge creation in the context of international high-tech SMEs knowledge sourcing. By addressing this call, the study provides a more refined and comprehensive account of international high-tech SMEs innovative foreign knowledge inflows.
{"title":"International high-tech SMEs innovative foreign knowledge inflows: effects of host country weak network ties and absorptive capacity","authors":"David Freund, Rob Lee, Heinz-Josef Tüselmann, Q. Cao","doi":"10.1108/mbr-04-2019-0031","DOIUrl":"https://doi.org/10.1108/mbr-04-2019-0031","url":null,"abstract":"\u0000Purpose\u0000The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of international high-tech small- and medium-sized enterprises (SMEs).\u0000\u0000\u0000Design/methodology/approach\u0000Data are drawn from the two largest and most authoritative German Federal Government census-databases of biotech and nanotech SMEs. A structured survey questionnaire was administered and regression analysis adopted.\u0000\u0000\u0000Findings\u0000This study demonstrates weak network ties in the host country and developing absorptive capacity produce a combined effect that positively influences international high-tech SMEs innovative foreign knowledge inflows. Also, host country weak network ties and absorptive capacity when considered separately, each respectively, positively influence innovative foreign knowledge inflows.\u0000\u0000\u0000Practical implications\u0000The results help inform key personnel in international high-tech SMEs about the relevance of host country weak network ties and absorptive capacity for foreign knowledge inflows. In addition, the results help policymakers and think-tanks to promote tailored advice and guidance e.g. those policymakers implementing the EU Entrepreneurship 2020 Action Plan.\u0000\u0000\u0000Originality/value\u0000There is a recent call in the literature to combine network theory and absorptive capacity theory to better explain knowledge creation in the context of international high-tech SMEs knowledge sourcing. By addressing this call, the study provides a more refined and comprehensive account of international high-tech SMEs innovative foreign knowledge inflows.\u0000","PeriodicalId":46630,"journal":{"name":"Multinational Business Review","volume":" ","pages":""},"PeriodicalIF":2.7,"publicationDate":"2020-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/mbr-04-2019-0031","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49601258","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-05-29DOI: 10.1108/mbr-02-2019-0010
R. Parente, K. Kelley, Yannick Thams, Marcelo J. Alvarado-Vargas
Purpose Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition (CBMA) location choices, it is critical to examine the acquirers’ ownership advantages. Design/methodology/approach Using a sample of CBMAs undertaken by US firms from 1999 to 2015, the paper explores the extent to which acquiring firm ownership advantages – financial and innovation capabilities – influence target firm country selection in relation to regulative distance. Findings It is shown that acquiring firms with greater innovative capabilities are likely to choose target firms in nations with less regulative distance from their home market; whereas firms with greater financial capabilities target firms in more distant nations. Originality/value This paper builds on the important research on CBMA activity, focusing on the largely neglected pre-acquisition resources in relation to the regulative distance between target firms and the acquirer.
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