Search Results (97)

This study examined globalisation, de-globalisation, the combination, and the future of value chains to ascertain which would be best for the future of value chains. The study used a cross-sectional survey of 277 randomly selected employees of multinational manufacturing firms in Nigeria. The data were analysed using structural equation model path diagram techniques. The results indicate that de-globalisation and the combination of globalisation and de-globalisation have direct and indirect significant relationships with the future of value chains, but globalisation does not have any direct significant relationship with the future of value chains but has an indirect significant relationship with the future of value chains. In addition, supply chain management significantly mediates the relationships among globalisation, de-globalisation, the combination, and the future of value chains. By establishing a significant association between the combination and the future of value chains, the study departs from future studies whose results are largely situated on the bipolar ends of a continuum. The study makes significant contributions to the traditional theory of trade protectionism, endogenous growth theory, and institutional theory, as well as to practice. 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

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

Risk management is crucial for the effective delivery of construction projects. While extensive research around the importance of risk management exists globally, limited studies have examined the effectiveness of risk assessment in general and in Egyptian construction projects in particular. Hence, this paper fills this gap by exploring current risk assessment practices through semi-structured interviews with 15 industry experts from various construction firms in Egypt. A qualitative methodology was adopted, and thematic analysis was used to identify key challenges and opportunities for improvement. The findings indicated that Egyptian firms tend to rely heavily on personal judgment rather than implementing a structured process, whereas multinational companies adopt more formalized approaches. The absence of systematic documentation on project failures further weakens the effectiveness of current risk assessment practices. Unlike previous studies that primarily used quantitative methods, this research employs a qualitative approach that provides direct insights from the industry and offers a deeper understanding of actual practices. Given the differences in risk assessment approaches between local and international companies, this study suggests that cultural and operational factors must be considered when developing structured risk management frameworks. Similar patterns have been observed in other regions, where multinational firms operating in markets such as the Middle East, Asia, and Latin America tend to implement standardized risk management protocols, while local companies often face challenges in formalizing these practices. The findings offer valuable insights for both national and multinational companies operating in the Egyptian construction sector that aim to enhance project risk management. 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

This study provides the first evidence of the propensity of globally large industrial US and European firms to adopt enterprise risk management (ERM) processes in response to the recent challenges of systematic global risks associated with pandemics (COVID-19), increased geopolitical risks (e.g., the Ukraine–Russia conflict), increased cybersecurity threats and the challenges posed by climate change and biodiversity loss. Consistent with the predictions of standard risk management theory, it is predicted that there is a positive inter-relationship between the propensity to adopt ERM and total firm risk, after controlling for various firm-related financial characteristics, complexity and sources of idiosyncratic risk. The empirical research is based on an industry-matched sample of the 100 largest US and European firms globally. The empirical results are generally consistent with these predictions, but for European firms, total firm risk is not associated with ERM adoption. Furthermore, there is no statistically significant relationship between sample firms’ risk-adjusted performance and their ERM adoption propensity, and there are also significant cultural–institutional variations that explain the differences between the ERM adoption practices between US and European sub-sample firms. The findings raise new questions about the validity of ERM in addressing globally important risk challenges faced by the largest multinational firms. 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

This study examines how job demands, personal resources, and job resources influence work outcomes, focusing on the role of job autonomy and systems intelligence. Drawing on Job Demand–Resource and Job Demand–Control Models, we hypothesize that job autonomy moderates the negative effects of job stressors (work overload, managerial pressure, and time pressure) on job performance. Additionally, we propose that systems intelligence mediates the relationship between job stressors and job performance. Data were collected from employees in multinational firms in Pakistan through two time-lagged survey waves. The results show that job stressors at time 1 (work overload, managerial pressure, time pressure) negatively affect perceived job performance at time 2 but not supervisor-rated performance. Job autonomy at time 2 weakens the negative impact of managerial pressure on perceived performance but does not mitigate work overload or time pressure at time 1. Systems intelligence at time 2 directly influences perceived job performance (time 2) but does not mediate the relationship between job stressors (time 1) and performance outcomes (time 2), challenging existing mediation models. These findings underscore the importance of the “buffer hypothesis” in reducing the negative effects of job demands on performance. Systems intelligence consistently predicts increased job autonomy across both time points and reduces managerial pressure, work overload, and time pressure at time 2. This research contributes valuable insights into optimizing employee performance and well-being amidst complex workplace stressors, emphasizing that job resources (such as autonomy) and personal resources (such as systems intelligence) can work together or independently to support positive outcomes. 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

This study investigates the management of cultural diversity and its implications for the success of infrastructure projects. It was conducted qualitatively at a multinational organisation, involving twelve semi-structured interviews with participants from Europe, Asia, America, and Africa. Content analysis identifies relevant units and categories based on theory and empirical data. A positive work environment promotes flexibility in decision-making through effective communication, problem-solving, and distinctive familial characteristics. Key success factors include effective communication, team building, strong relationships, language barriers, diverse perspectives, mutual respect, hygiene, safety, welfare facilities, and technical challenges. Successful construction firms integrate changes in cross-cultural team selection, joint decision-making, communication, teamwork, effective people selection, and project selection, enabling consistent high-performance levels across various organisational levels in project teams. Project managers can enhance team dynamics, productivity, and project success by promoting cultural diversity through training in interpersonal skills, language proficiency, and cultural intelligence, encouraging collaboration, clear goals, and inclusive decision-making processes. The paper explores Ghana’s multicultural diversity through interviews and case studies, highlighting its underexplored and understudied topic in gas-to-power projects. This paper has generalizability limitations based on one case study. 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

Although the Middle East is often perceived as politically, economically, and socially unstable, Saudi Arabia offers a different narrative. Inspired by the country’s vision (Vision 2030) and the growing body of research exploring its socio-economic transformation, this article examines how organizational strategy theories and practices can be advanced by inviting researchers to focus on Saudi Arabia’s evolving context. To achieve this, the article addresses three pivotal questions: (a) Why should academics consider conducting research in Saudi Arabia? (b) What research topics could significantly advance organizational strategy theories and practices? (c) What are the primary barriers to conducting research in Saudi Arabia? Using a comprehensive review of existing literature, socio-economic analysis, and an evaluation of Vision 2030 targets, the article identifies three key themes: (1) socio-cultural dynamics and their influence on organizational strategies, (2) economic diversification and its impact on strategic resilience, and (3) the strategic alignment of foreign direct investment (FDI) with expatriate mission success. These findings lead to distinct research agendas linked to relevant theoretical frameworks, including Cross-Cultural Theory, Institutional Theory, and the Resource-Based View. The article concludes by inviting scholars to explore these themes and generate findings that contribute to existing organizational strategy theories and practical solutions, fostering a deeper understanding of organizational strategy within Saudi Arabia and the broader global landscape. Full article

Against the backdrop of global climate change and sustainable development, carbon emissions within transnational closed-loop supply chains have become a critical area of research. This paper utilizes a Stackelberg game model to analyze the relationship between a single export manufacturer and an import retailer. The study investigates the optimal solutions of the supply chain model—wholesale price, retail price, sales volume, and profit—across three consumer preference scenarios: no obvious preference, pure green preference, and pure new preference. Furthermore, this paper examines the impact of carbon emissions per unit of product on supply chain decision-making under two scenarios: with and without carbon trading. Carbon trading, which significantly increases unit costs, exerts a profound influence on the strategic decisions of both manufacturers and retailers. In addition, this paper incorporates carbon tariffs and taxes into its analysis, providing a theoretical foundation for governments and policymakers to promote sustainable production and consumption practices. The validity of the model is confirmed through numerical simulations, which reveal that under pure green and pure new preference scenarios, original equipment manufacturers (OEMs) are more inclined to invest in emissions reduction to minimize tariff costs. In contrast, under no obvious preference scenarios, OEMs are more likely to adjust product portfolios to evade carbon tariffs. This research advances the understanding of low-carbon production strategies in transnational supply chains, offering both theoretical insights and practical guidance for balancing economic and environmental objectives. Full article