Search Results (169)

Due to globalization, companies are exposed to a culturally diversified workforce; therefore, great emphasis is placed on identifying the most effective leadership style that would be able to manage such a workforce. Although numerous studies have attempted to identify successful leadership styles in different cultural settings, none have focused on the perceptions of top managers who work in multinational corporations (MNCs) in culturally diversified surroundings. Thus, our research attempts to identify the most preferred leadership style and characteristics from the perspective of top managers in MNCs in the United Arab Emirates (UAE). The 13 leadership characteristics analyzed in this study were generated from the 21 characteristics found by Global Leadership and Organizational Behavior Effectiveness (GLOBE) research. The participants, top managers in MNCs, needed to evaluate leadership styles by considering leadership characteristics. To ensure the objectiveness of the study, we analyzed their answers by applying the Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. The results indicated that the most preferred leadership characteristics were visionary, inspirational, collaborative team-oriented, and performance-oriented. Moreover, the transformational leadership style emerged as the most preferred leadership style. The study’s findings show that top managers believe that employees in MNCs in the UAE seek a leader with a vision who will inspire, motivate, and help them fulfill their true potential. Full article

Dietary choices and patterns have enormous consequences along the lines of individual, community, and planetary health. Excess meat consumption has been linked to chronic disease risk, and at large scales, the underlying industries maintain a massive environmental footprint. For these reasons, public and planetary health experts are unified in emphasizing a whole or minimally processed plant-based diet. In response, the purveyors of ultra-processed foods have added “meat alternatives” to their ultra-processed commercial portfolios; multinational corporations have been joined by “start-ups” with new ultra-processed meat analogues. Here, in our Viewpoint, we revisit the 1990s food industry rhetoric and product innovation, a time in which multinational corporations pushed a great “low-fat transition.” We focus on the McLean Deluxe burger, a carrageenan-rich product introduced by the McDonald’s Corporation in 1991. Propelled by a marketing and media-driven fear of dietary fats, the lower-fat burger was presented with great fanfare. We reflect this history off the current “great protein transition,” a period once again rich in rhetoric, with similar displays of industry detachment from concerns about the health consequences of innovation. We scrutinize the safety of carrageenan and argue that the McLean burger should serve as a cautionary tale for planetary health and 21st century food innovation. Full article

As Chinese firms play pivotal roles in global supply chains, multinational corporations face increasing pressure to ensure ESG accountability across their sourcing networks. Current ESG rating systems lack transparency in incorporating China’s unique industrial, economic, and cultural factors, creating reliability concerns for stakeholders managing supply chain sustainability risks. This study develops an explainable artificial intelligence framework using SHAP and permutation feature importance (PFI) methods to predict the ESG performance of Chinese firms. We analyze comprehensive ESG data of 1608 Chinese listed companies over 13 years (2009–2021), integrating financial and non-financial determinants traditionally examined in isolation. Empirical findings demonstrate that random forest algorithms significantly outperform multivariate linear regression in capturing nonlinear ESG relationships. Key non-financial determinants include patent portfolios, CSR training initiatives, pollutant emissions, and charitable donations, while financial factors such as current assets and gearing ratios prove influential. Sectoral analysis reveals that manufacturing firms are evaluated through pollutant emissions and technical capabilities, whereas non-manufacturing firms are assessed on business taxes and intangible assets. These insights provide essential tools for multinational corporations to anticipate supply chain sustainability conditions. Full article

This study examines the impact of AI adoption orientation on innovation performance in multinational corporations (MNCs), emphasizing team innovativeness as an intervening mechanism and technology orientation as a moderating factor. Using data from 410 respondents collected via a snowball sampling strategy and analyzed through partial least squares structural equation modeling (PLS-SEM), the findings reveal that artificial intelligence (AI) adoption orientation positively influences team innovativeness and innovation performance. Team innovativeness partially mediates this relationship, while technology orientation moderates the link between AI adoption and team innovativeness, underscoring the role of technological preparedness in enhancing innovation. The study contributes to theoretical understanding by integrating team dynamics and technology preparedness in AI-driven innovation. It provides practical insights for managers, policymakers, and organizational leaders on fostering an innovative culture and investing in technology skills to drive MNC competitiveness. Full article

Current research has made significant progress in exploring the sustainability efforts made by domestic and foreign firms, respectively, but paid insufficient attention to the interaction of these firms in the form of sustainability practice spillovers. This paper aims to fill this gap by discussing the spillovers of ‘best practices’ of corporate environmental sustainability (CES) from multinational enterprises (MNEs) that have made increasing investment in green production in recent decades to local forms in host developing countries where environmental protection is relatively weak. In line with internalization theory, we contend that MNEs have to internalize CES ‘best practices’ in their affiliates across the globe, and such practices can spill over to local firms in host developing countries with poorer CES practices. The level of development of press freedom in the host developing country conditions the CES practice spillovers. This study tests hypotheses against firm-level data from a large-scale survey and finds robust evidence to support our argument. This study takes a quantitative approach to unveil the existence and boundary conditions of CES practice spillovers and suggests that policymakers need to facilitate the spillovers of such practices and that scholars need to further advance research in this area. Full article

Capital budgeting, particularly sophisticated decisions, is key to the financial performance and risk management of firms, yet academic studies have documented their relationship inconsistently. This study employs the fundamentals of resource-based view (RBV) and agency theories to investigate the impact of sophisticated capital budgeting decisions on financial performance and risk management of the firms of two different sizes, classified as small and medium enterprises (SMEs) and multinational corporations (MNCs). The empirical data of 590 Indonesian firms from between 2014 and 2023 were obtained and analyzed through the Generalized Method of Moments (GMM) technique. The results show that the usage of sophisticated capital budgeting decisions in investment appraisals of classified firms significantly improves their financial performance. Further analyses confirm that although sophisticated capital budgeting decisions are robust in resolving solvency issues, they appear less effective in reducing liquidity risks. The findings also elucidate that sampled firms may realize the financial benefits of sophisticated risk management. The mediation results highlighted that risk management has a significant and positive effect on the relationship between sophisticated capital budgeting decisions and financial performance. The present study contributes to corporate finance by validating the relevance of SCBDs in strategic financial planning and stable investments in firms of different sizes. Full article

Multinational corporations (MNCs) face significant reputational and performance risks from product recalls, yet the severity of these consequences varies across national markets. While prior research suggests that corporate social responsibility (CSR) can buffer against such crises, limited attention has been paid to how country-level institutions shape this effect. This study examines whether—and under what institutional conditions—CSR reputation mitigates the negative market consequences of product recalls. We focus on how the insurance-like effect of CSR varies with the level of corruption in a country’s institutional environment. Using panel regression analysis and hand-collected data from 14 global automotive manufacturers across eight countries (2007–2015), we find that firms with stronger CSR reputations experience significantly smaller declines in market share after recall announcements. Furthermore, this buffering effect is amplified in countries with higher corruption levels, suggesting that when formal institutional trust is weak, CSR signals play a greater role in stakeholder perceptions. These findings advance CSR literature by showing that its reputational benefits are contingent on institutional context and contribute to international business scholarship by revealing how national-level corruption interacts with firm-level reputational assets during crises. Full article

Workplace integration in hierarchical collectivist societies is shaped by structured social mechanisms rather than collectivist values alone. While collectivism is often assumed to foster inclusiveness, its structural manifestations regulate workplace inclusion through feedback loops of hierarchical loyalty, trust building, and kinship-based exclusivity. This study employs causal loop diagrams (CLDs) to conceptually map how cultural structures regulate workplace inclusion—not to assert empirical causality, but to illustrate the culturally grounded feedback loops in Indonesia and the Philippines. The findings identify the reinforcing loops that sustain hierarchical exclusivity in Indonesia and a counterbalancing loop that facilitates immediate kinship-based trust in the Philippines. By conceptualizing workplace inclusion as an emergent property of interdependent social mechanisms, this study highlights how structured exclusivity stabilizes hierarchical workplaces while limiting adaptability. Unlike frameworks that treat collectivism as a static cultural trait, CLDs provide a dynamic lens to analyze how workplace inclusion evolves through structured feedback loops—revealing how structured exclusivity in collectivist systems governs trust, inclusion, and legitimacy not through ideology alone, but through relational sponsorship, time-dependent trust, and group-based gatekeeping. These insights contribute to cross-cultural management and organizational studies by demonstrating how structured exclusion functions as a self-reinforcing mechanism. The findings have implications for multinational corporations, policymakers, and organizational leaders seeking to design adaptive strategies for workplace integration in hierarchical collectivist environments. While both countries are analyzed, Indonesia serves as the primary site of investigation, with the Philippines providing a contrast to illuminate structured exclusivity mechanisms in hierarchical collectivist contexts. Full article

Artificial intelligence (AI) is transforming the internationalisation activities of multinational corporations (MNCs) through enhanced operational efficiencies and optimised decision-making; though the moderating factors influencing its impact on export-led internationalisation remain underexplored. This research adopts a Resource-Based View (RBV) approach to examine the complex relationship between AI capabilities and the export performance of Indian MNCs, with cultural distance serving as a moderating factor, analysing how AI adoption influences export intensity, trade expansion, and market penetration strategies. Data from a 2024 survey of 449 Indian exporters across various industries, analysed using Structural Equation Modelling, reveal that AI capabilities positively impact export performance particularly in markets characterised by high institutional uncertainty and complex regulatory environments. Moreover, cultural distance acts as a significant moderator, amplifying the role of AI in navigating consumer preferences, language barriers, and localised business practices. AI-powered analytics help firms better understand foreign markets, adapt to cultural differences, and optimise international operations. This study advances the scholarly understanding and contributes to internationalisation theory by integrating AI-driven trade strategies with institutional and cultural moderating factors and offers a structured framework for corporate managers and policymakers to formulate AI-based strategic decisions that leverage AI to mitigate trade-related uncertainties, improve their compliance with international regulations, and strengthen global trade competitiveness in emerging economies. Full article

Environmental, social, and governance (ESG) performance has become a pivotal factor for multinational corporations, especially within resource-intensive sectors like construction. This study explores how financial indicators—specifically liquidity, profitability, and leverage ratios—influence ESG outcomes under differing institutional conditions in China and the United Kingdom. Employing a quantitative approach via ridge regression analysis on data from 96 construction firms, the research identifies key financial predictors of ESG performance and develops a predictive model to assess cross-regional applicability. The results demonstrate that liquidity and profitability are significant drivers of ESG outcomes, with their impact varying according to institutional frameworks—where regulatory compliance and government incentives dominate in China, and market-driven pressures prevail in the UK. Although the predictive model exhibits strong accuracy, it also underscores the contextual sensitivity of financial metrics in shaping ESG practices. The extent to which ESG serves as a stabilising force or an amplifier of financial risk depends on disclosure levels and the deeper integration of ESG principles into corporate strategy, risk management, and capital allocation. These findings contribute to sustainable finance and resource dependence theories, offering opportunities for policymakers to refine ESG disclosure frameworks, investors to pinpoint financially resilient ESG leaders, and construction firms to align their financial strategies with sustainable development goals. Full article

Against the backdrop of accelerated global digital transformation and the shift toward open innovation models, this study examines how enterprises leverage digital capabilities to integrate into global innovation networks (GINs) and enhance innovation performance, while exploring the moderating role of organizational flexibility. Drawing on dynamic capability and social network theories, a multidimensional framework of digital capabilities (perception, operation, and coordination) and organizational flexibility (cultural, resource, and capability) is proposed. The empirical analysis of 343 Chinese multinational corporations using SPSS 27 and AMOS 24 reveals three key findings: (1) all dimensions of digital capabilities significantly improve innovation performance; (2) GIN integration partially mediates this relationship by facilitating resource acquisition and collaboration; and (3) capability flexibility positively moderates the GIN–performance link, while cultural and resource flexibility show no significant effects. This study advances digital capability research by emphasizing dynamic processes over static technology adoption and provides practical insights for balancing technological investments with organizational adaptability. Full article

This paper investigates the valuation of international acquisitions of multinational corporations (MNCs) using real options theory, focusing on L’Oréal’s acquisition of Aesop. It explores how MNCs create growth and deferral options simultaneously in M&A deals, enhancing market value and promoting sustainable practices. The study addresses two key questions: the role of MNCs in advancing sustainability and the measurement of market value added through parallel compound options. Using L’Oréal’s acquisition of Aesop as a case study, the paper demonstrates the strategic benefits of combining growth and deferral options. Examples include L’Oréal’s expansion into new markets like China, leveraging Aesop’s sustainable practices, and achieving competence-based collaborative synergies. The findings provide a framework for assessing collaborative synergies in international transactions, contributing to the literature on strategic management, international business, and financial management. In conclusion, the paper highlights the importance of strategic flexibility and sustainability in MNC acquisitions, offering valuable insights for future research and practical applications in international business. Full article

Total factor productivity serves as a critical indicator of high-quality corporate development. This study systematically examines the impact of ESG performance on TFP using panel data from Shanghai and Shenzhen A-share listed firms spanning 2009 to 2023. The findings reveal three key insights: first, corporate ESG performance significantly enhances TFP, with regression analysis demonstrating a statistically robust positive correlation (1% significance level) and high explanatory power (R² > 0.8). Second, under environmental uncertainty, ESG-driven total factor productivity improvements operate through dual mechanisms: energy conservation and resource allocation optimisation. Third, heterogeneity analysis highlights that non-state-owned enterprises exhibit a more pronounced relationship compared to state-owned counterparts, particularly in high-environmental-uncertainty scenarios. Beyond enriching academic discourse on ESG metrics, this research elucidates the intrinsic linkage between ESG practices and TFP under dynamic environmental conditions, offering actionable strategies for firms to align sustainability goals with productivity growth. For international stakeholders, this study provides empirical evidence from China—the world’s second-largest economy—to inform global ESG policy design and cross-border investment decisions, emphasising the role of institutional contexts in sustainability-driven value creation. The insights are pivotal for investors, policymakers, and multinational corporations seeking to navigate ESG complexities while advancing sustainable development goals in emerging markets. Full article

In the evolving landscape of dairy farming, data ownership and privacy have become critical issues. This commentary paper delves into the complexities and implications of data management in the dairy industry, informed by insights from a multidisciplinary group of stakeholders. While the authors bring a U.S. perspective, the challenges discussed are globally relevant, given the dominant role of multinational corporations in shaping data practices across regions. The discussions, conducted through structured meetings and iterative online exchanges, emphasized the pressing legal and ethical concerns, the role of technology, and the necessity of developing comprehensive guidelines to safeguard data integrity and benefit all stakeholders. Key points include the global nature of data protection regulations, the potential of blockchain and IoT devices to enhance transparency, and the importance of equitable value distribution. By fostering an environment of transparency and fairness, the dairy industry can harness the power of data to drive innovation and sustainability while protecting the rights of those who generate it. This paper provides a pathway to address these challenges by raising awareness and proposing general actions for the industry’s future. Full article