Search Results (39)

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

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

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

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

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

Under global economic integration, firms are active in transnational operations, prompting all sectors to deepen their awareness of the role of enterprises and pay attention to the fulfillment of their social responsibility. Although the existing literature has explored the impact of firm internationalization (FI) on corporate social responsibility (CSR), there is a lack of comprehensive analysis focusing on the interactions between the different dimensions of the two and how they are influenced by the system of the sample’s country of origin. Therefore, this study aimed to comprehensively investigate the current developments, trends and hotspots of the relationship between FI and CSR, and at the same time summarize the current major theoretical perspectives and empirical findings in this area. This study utilized the Web of Science database to conduct a bibliometric analysis and a literature review analysis of 331 studies published up to 2024 in order to identify trends and patterns in the relationship between FI and CSR. Specifically, the bibliometric analysis utilized Cite Space 6.4.R1 and VOSviewer 1.6.19 to analyze the collected and screened literature data, clarify the distribution of the core research power, and discover hotspots and trends through keyword analysis, whereas the literature review analysis sorted out the complex relationship between FI and CSR through extensive reading of the literature and an analysis of it from both theoretical perspectives. The empirical results and their aspects are summarized. The findings demonstrate that the research in this field shows an increasing trend year by year, in which American and British universities and research institutes are in the leading position in this field, and Asian emerging economies are also emerging in this field. The current hotspot is still focused on the impact of the degree of internationalization on the fulfillment of social responsibility, but some scholars have begun to carry out interdisciplinary research, focusing on the emerging markets through micro case studies. At the same time, this study also found that there is a complex interaction between FI and CSR; on the one hand, this is due to the fact that scholars use different theoretical perspectives in different practice contexts, and on the other hand, it is because scholars use different research methods and samples, which leads to the heterogeneity of the final empirical results. This study provides a clear guideline for subsequent researchers to quickly grasp the research pattern through the bibliometric analysis, which greatly saves on exploration time and energy in the pre-study period, while the literature review analysis summarizes the framework of the previous studies for readers, and sorts out the complex relationship between FI and CSR clearly. Overall, this study provides ideas for firms to adopt CSR in their internationalization strategies, as well as a basis for relevant sectoral organizations to formulate policies and regulatory measures. Full article

This research delves into the influence of adopting international financial reporting standards (IFRSs) on the financial reporting quality (FRQ) of Indian multinational corporations (MNCs). It also investigates the moderating impact of the internal control system (ICS) on the relationship between IFRSs and FRQ. The data collection involves a survey using a previously validated and adjusted scale from earlier studies. A sample of 512 participants is selected through purposive sampling methods. The analysis employs partial least square structural equation modelling (PLS-SEM) to validate the data and test the hypotheses. The results indicate a significantly positive influence of perceived benefits, perceived ease of implementation, and government policy on IFRS adoption within Indian MNCs. However, the impact of legal requirements on IFRS adoption in Indian MNCs is insignificantly positive. Furthermore, adopting IFRSs substantially positively affects FRQ within Indian MNCs. Similarly, FRQ significantly positively affects the relevance, accuracy, understandability, comparability, and timeliness of MNCs’ financial reports in India. The moderating role of the ICS in the connections between IFRS adoption and FRQ is positive yet insignificant within Indian MNCs. The insights derived from this study are valuable for investors, shareholders, government authorities, financiers, board members, and top executives of organisations. Full article

To establish a responsible business environment, it is important to analyze the way corporate social responsibility (CSR) is implemented within the business world. In this respect, managers play a crucial role in designing and applying the CSR concept and practices. Therefore, this paper aims to identify and analyze the perceptions and attitudes of medium-sized enterprises (SMEs) and multinational companies (MNCs) managers in the Romanian retail sector related to CSR implementation. A documentary research approach and a qualitative research methodology through the use of four focus groups were utilized to fulfill the above-mentioned purpose. Additionally, the authors employed content analysis and Nvivo 14 software to process the collected data. The findings indicate that the size of firms represents a key element of managers’ perceptions and attitudes regarding CSR. Particularly, SME managers have a lower level of familiarity with the concept and the potential advantages for business compared to MNC managers. Furthermore, when it comes to CSR practices, MNCs use a comprehensive approach to meeting the demands of their stakeholders, whereas SMEs prioritize the requirements of their employees. One major obstacle in implementing the CSR concept continues to be the high expenses involved in the businesses. Full article

In this paper, we explore the relationship between the culture of the country where a multinational corporation (MNC) is headquartered and the MNC’s stock market reaction to tax avoidance regulations. Specifically, we examine the different responses of MNCs following the implementation of the 2010 UK reform that restricted profit shifting for a specific group of firms. We find that, in countries with short-term-oriented cultures, MNCs affected by this reform experienced positive stock market responses relative to their unaffected counterparts. This is not found in long-term-oriented cultures. This difference in response can partly be explained by the differing perceptions of the role tax havens play in tax minimization practices between more long-term-oriented cultures and those oriented towards the short term. We provide evidence that investors from more future-oriented cultures may recognize the short-lived effectiveness of a regulation ex ante, and thus price the quasi-exogenous market shock differently than their more short-term-oriented counterparts. Full article

The development and implementation of information systems strategy in multi-national corporations (MNCs) faces particular challenges—cultural differences and variations in work values and practices across different countries, numerous technology landscapes and legacy issues, language and accounting particularities, and differing business models. This article builds upon the existing literature and in-depth interviews with eighteen industry practitioners employed in six MNCs to construct an operational model to address these challenges. The research design is based on an inductive, qualitative approach that develops an initial conceptual framework—derived from the literature—into an operational model, which is then applied and refined in a case study company. The final model consists of change components and process phases. Six change components are identified that drive and underpin IS strategy—business strategy, systems projects, technology infrastructure, process change, skills and competencies, and costs and benefits. Five core process phases are recognized—review, align, engage, execute, and control. The model is based on the interaction between these two dimensions—change components and process phases—and an action list is also developed to support the application of the model, which contributes to the theory and practice of information systems deployment in MNCs. Full article

Technological innovation of multinational corporations (MNC) is an important engine to drive the world’s scientific and technological progress, which plays an important role in the sustainable development of global innovation. With China’s high-tech industry from 2009 to 2020 as the research sample, this study empirically analyzes the impact of MNCs’ two-stage innovation on the innovation efficiency of China’s high-tech industry through the perspective of base regression, threshold effect, and regional heterogeneity. It was found that MNC research and development (R&D) efficiency and achievement transformation efficiency have a positive impact on the innovation efficiency of high-tech industries in China, with nonlinear features and regional heterogeneity. This study provides an empirical basis for the efficient use of MNC’s innovative resources and the sustainable development of China’s high-tech industry. Full article

Managing multiple knowledge transfers between headquarters and subsidiaries, among subsidiaries, and also within each of these units is crucial for multinational corporations’ (MNCs) survival. Therefore, this article aims to uncover the main factors influencing internal knowledge transfers in MNCs—including intra-unit knowledge transfers and transfers between units, namely, conventional, horizontal, and reverse knowledge transfers. To achieve this goal, a systematic literature review (SLR) was conducted to synthesize the content of 85 articles. From a set of 1439 papers, only 85 related to knowledge transfer and knowledge sharing were considered. Based on an inductive thematic approach, eight different research categories and 97 topics were identified. Four different internal knowledge transfers (intra knowledge transfer (IKT), horizontal knowledge transfer (HKT), conventional knowledge transfer (CKT), and reverse knowledge transfer (RKT)) are compared across eight thematic categories and 97 topics. According to the results obtained, the depth of the topics analyzed varies, as does the variety of categories, with RKT being more deeply analyzed than IKT. There is a clear dominance of vertical knowledge transfer (CKT + RHT) over HKT. The exercise of power (e.g., size, knowledge base) still dominates CKT and RKT in most of the studies analyzed, which are traditionally affected by the characteristics of MNCs, HQs and subsidiaries. The debate on HKT is affected by the classical perspectives of power-based relations (e.g., expatriates, size, knowledge base) among subsidiaries. Although important, intra-unit knowledge transfer is greatly influenced by characteristics. Full article

In this article, we study corporate behavior and develop a model for trends and factors in Japanese Multinational Corporations (MNCs) in the electrical and electronic industry that have played an important role in the economic development of East and Southeast Asia. We focus on Thailand, where Japanese MNCs are still increasing, and examine the practical applicability of the model. Basically, the model will be developed based on the existing flying geese model and regional agglomeration, but it will also be developed to explain new events such as progress in the division of labor by fragmentation and intra-regional agglomeration in East and Southeast Asia. Japanese MNCs in the electrical and electronic industry have shifted their production bases to developing countries one after another, as a variant of the third type of flying geese model. While the network of the international division of labor is forming with the development of fragmentation, the area around the eastern seaboard from Bangkok is playing an increasingly important role in the network of Japanese companies. In that sense, this study contributes to the body of literature on flying geese models with a modified model embodied with dynamic and systematic features of the ASEAN integrated economies. Full article

There is a large volume of literature in international business on multinationality. There is an equally large volume of literature in finance on stock price crash risk. However, very few studies have attempted to provide a link between these two research areas. Using an unbalanced panel data consisting of 473 multinational corporations (MNCs) publicly listed in the Chinese stock markets during 2004 to 2020, this paper is one of the first to empirically investigate whether and to what extent multinationality affects stock price crash risk. The paper finds strong evidence that multinational operation is negatively related to stock price crash risk. In addition, MNCs with better corporate governance quality experience larger decline in stock price crash risk when the degree of multinationality increases. Furthermore, MNCs with higher stock market liquidity experience lower crash risk. An important implication is that companies should strengthen their corporate governance and market liquidity while “going global”. Full article