The Case of the Bougainville Mine: Success and Failure in the Management of a Multinational Corporation

2002 ◽  
Vol 8 (1) ◽  
pp. 70-85 ◽  
Author(s):  
Graeme R Tonks ◽  
Peter J Dowling
Keyword(s):  
Papua New Guinea ◽  
Environmental Variables ◽  
Multinational Corporation ◽  
Multinational Enterprises ◽  
Home Country ◽  
Developed Countries ◽  
Host Society ◽  
Mining Company ◽  
Developed Nations ◽  
The Impact

ABSTRACTAlthough inquiry into the impact of contextual factors on the governance of multinational enterprises (MNEs) has increased, primary attention has centred on MNEs from developed countries, which operate in other industrialised economies. There has been relatively little research into organisations from developed nations involved in less developed countries (LDCs). As this dearth of inquiry is particularly evident in South Pacific economies, this paper examines the management of Bougainville Copper Limited (BCL), an Australian mining company that operated in Papua New Guinea (PNG) until it was violently expelled by local communities in 1990. While this study supports research claiming that MNE performance depends upon the alignment of firms' internal and external environments, it demonstrates that alignment becomes increasingly difficult as characteristics in the host setting deviate from those in the home country. More importantly, it reveals that MNEs cannot survive under extremely divergent home—host conditions despite management efforts to control environmental variables. It also establishes that MNEs should focus contextual congruency on the host society, not the host country as widely suggested in the literature.

The Case of the Bougainville Mine: Success and Failure in the Management of a Multinational Corporation

2002 ◽  
Vol 8 (1) ◽  
pp. 70-85 ◽  
Author(s):  
Graeme R Tonks ◽  
Peter J Dowling
Keyword(s):  
Papua New Guinea ◽  
Environmental Variables ◽  
Multinational Corporation ◽  
Multinational Enterprises ◽  
Home Country ◽  
Developed Countries ◽  
Host Society ◽  
Mining Company ◽  
Developed Nations ◽  
The Impact

ABSTRACTAlthough inquiry into the impact of contextual factors on the governance of multinational enterprises (MNEs) has increased, primary attention has centred on MNEs from developed countries, which operate in other industrialised economies. There has been relatively little research into organisations from developed nations involved in less developed countries (LDCs). As this dearth of inquiry is particularly evident in South Pacific economies, this paper examines the management of Bougainville Copper Limited (BCL), an Australian mining company that operated in Papua New Guinea (PNG) until it was violently expelled by local communities in 1990. While this study supports research claiming that MNE performance depends upon the alignment of firms' internal and external environments, it demonstrates that alignment becomes increasingly difficult as characteristics in the host setting deviate from those in the home country. More importantly, it reveals that MNEs cannot survive under extremely divergent home—host conditions despite management efforts to control environmental variables. It also establishes that MNEs should focus contextual congruency on the host society, not the host country as widely suggested in the literature.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

Country-of-origin and CSR initiatives: a social dominance perspective

2018 ◽  
Vol 14 (3) ◽  
pp. 501-515
Author(s):  
Leyla Orudzheva ◽  
Nolan Gaffney
Keyword(s):  
Competitive Advantage ◽  
Host Country ◽  
Social Dominance ◽  
Multinational Enterprises ◽  
Home Country ◽  
Country Of Origin ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Content Type ◽  
Business Context

Purpose Research on corporate social responsibility (CSR) continues to proliferate, but why and how multinational enterprises (MNEs) from different parts of the world engage in CSR is still unclear. The purpose of this study was to investigate whether there are differences in behavior based on the status of the MNE’s home country relative to the host country. Design/methodology/approach Applying a social dominance theory (SDT) framework, the authors explain variations in MNE behavior because of perceived hierarchical differences between a MNE’s home country and that of the host country. It is posited that these hierarchical differences trigger a country-of-origin bias that affects stakeholders’ expectations for the MNE, as well as that firm’s response to those expectations. In this integrative conceptual paper, we propose a testable framework derived from a deductive approach that applies the tenets of SDT to predict outcomes of CSR implementation by MNE’s subsidiaries. Findings MNEs from less developed countries are subject to lower expectations and engage in self-debilitating behavior, which may hinder their attempts to implement CSR initiatives in more developed countries. Paradoxically, engaging in CSR initiatives could help reduce liability of foreignness and increase chances for competitive advantage. Practical implications MNEs from developing countries should be aware of a potential country-of-origin bias affecting decisions on CSR implementation and that could also be detrimental to their competitive advantage when operating in more developed countries. Conversely, MNEs from developed countries should be ready for higher expectations of their CSR initiatives in less developed countries. Originality/value This paper strives to contribute to two extant literatures. First, it contributes to the social dominance literature by applying the perspective in the international business context, specifically research on MNE liability of origin. Second, this perspective offers testable propositions on how perceived hierarchies and liability of origin affect firm decision-making, specifically in the context of developing country MNEs. Third, this paper seeks to expand the discussion of MNE subsidiary CSR behavior to account for the relative context of the home and host country.

scholarly journals The Impact of OFDI on the Technical Complexity of High-tech Industry Export in Home Country

2020 ◽  
Vol 214 ◽  
pp. 02012
Author(s):  
Chunxiang Liu ◽  
Yalan Gao
Keyword(s):  
Developing Countries ◽  
Data Model ◽  
Home Country ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
High Tech ◽  
High Tech Industry ◽  
The Developed Countries ◽  
The Impact ◽  
D Investment

This paper calculates the technical complexity of high-tech industry export in 38 countries from 1997 to 2017, discusses the mechanism of OFDI on the technical complexity of high-tech industry export in the home country, and empirically tests the impact of OFDI on the technical complexity of high-tech industry export in the home country by using the System GMM method of dynamic panel data model. The results show that OFDI can improve the technical complexity of high-tech industry export in the home country. After further analysis, it is found that OFDI can only significantly improve the technical complexity of high-tech industry exports from developing countries, but to a certain extent inhibit the developed countries. In addition, FDI, R & D investment, human capital, openness to the outside world and self owned technology can promote the export technology complexity of a country’s high-tech industry, while the impact of capital endowment on the export technology complexity of developed and developing countries’ high-tech industry is different.

scholarly journals The Impact of Corruption Distance on Ownership Strategies of Spanish and Portuguese MNEs

2018 ◽  
Vol 17 (1) ◽  
pp. 15-30
Author(s):  
Mariana Pedrosa Faria ◽  
Fernando Carvalho ◽  
Nuno Rosa Reis
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Home Country ◽  
Foreign Subsidiaries ◽  
Ownership Strategy ◽  
Important Decision ◽  
The Absolute ◽  
Using Data ◽  
The Impact

The ownership strategy of foreign subsidiaries is an important decision for multinational enterprises (MNEs). Previous research has analyzed the effect of country dimensions on this strategy, both from the home and the host country. In this paper we delve into the effect of differences between home and host country on the MNEs’ ownership strategies. Empirically, we analyze the influence of corruption distance on the ownership strategies of Spanish and Portuguese MNEs, using data from 3,941 foreign subsidiaries. We found that the higher the absolute corruption distance between Spain (or Portugal) and the host country, the higher the ownership controlled by MNEs. However, when the host is more corrupt than the home country, MNEs have a lower ownership level in the local subsidiaries.  

scholarly journals The impact of socioeconomic status on foodborne illness in high-income countries: a systematic review

2015 ◽  
Vol 143 (12) ◽  
pp. 2473-2485 ◽  
Author(s):  
K. L. NEWMAN ◽  
J. S. LEON ◽  
P. A. REBOLLEDO ◽  
E. SCALLAN
Keyword(s):  
Systematic Review ◽  
Socioeconomic Status ◽  
Low Socioeconomic Status ◽  
Foodborne Pathogens ◽  
Developed Countries ◽  
Foodborne Illness ◽  
Low Socioeconomic ◽  
E Coli ◽  
Developed Nations ◽  
The Impact

SUMMARYFoodborne illness is a major cause of morbidity and loss of productivity in developed nations. Although low socioeconomic status (SES) is generally associated with negative health outcomes, its impact on foodborne illness is poorly understood. We conducted a systematic review to examine the association between SES and laboratory-confirmed illness caused by eight important foodborne pathogens. We completed this systematic review using PubMed for all papers published between 1 January 1980 and 1 January 2013 that measured the association between foodborne illness and SES in highly developed countries and identified 16 studies covering four pathogens. The effect of SES varied across pathogens: the majority of identified studies for Campylobacter, salmonellosis, and E. coli infection showed an association between high SES and illness. The single study of listeriosis showed illness was associated with low SES. A reporting bias by SES could not be excluded. SES should be considered when targeting consumer-level public health interventions for foodborne pathogens.

scholarly journals The Impact Of Multinational Enterprises On Global Governance: The Protests Movement View

2021 ◽  
Vol 07 (11) ◽  
Author(s):  
Mark Achaku ◽  
Keyword(s):  
Decision Making ◽  
Multinational Corporations ◽  
Global Governance ◽  
Multinational Corporation ◽  
Multinational Enterprises ◽  
Secondary Data ◽  
Point Of View ◽  
Collective Decision Making ◽  
Governance Institutions ◽  
The Impact

This study is based on secondary data and looks at the activities of Multinational Corporation and its impact on global governance from the protests movement point of view. Available data show that multinational corporations derive at least a quarter of their revenue outside their home countries. However, the debate is how significant do they contribute to development or involve in activities that lead to human and economic deprivation of host communities. The study reveals that the benefits are not enough compared to the damages. The multinational corporation uses global governance institutions to back up their interests and always get preferred treatment. The host communities who feel exploited are not happy but the multinational corporations are always innovative so, there is hope towards finding solutions. In this regard therefore, the relevant stakeholders should be engaged towards collective decision making and problem-solving in a participatory manner for effective global governance.

Stage of development of a country and CSR disclosure – the latent driving forces

2020 ◽  
Vol 62 (5) ◽  
pp. 467-493
Author(s):  
Aparna Bhatia ◽  
Binny Makkar
Keyword(s):  
Developing Countries ◽  
Stock Exchange ◽  
Developed Countries ◽  
Firm Level ◽  
Content Type ◽  
Country Level ◽  
The Usa ◽  
Csr Disclosure ◽  
Developed Nations ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of various determinants at the country level, the industry level, the firm level and the corporate governance (CG) level on the extent of corporate social responsibility (CSR) disclosure in the group of developing and developed nations. Design/methodology/approach The data set comprises 310 companies listed on stock exchanges of developing and developed markets (Brazil – IBrX 100, 42 companies; Russia – Broad Market Index; 48 companies; India – Bombay Stock Exchange (BSE) 100, 50 companies; China – Shanghai Stock Exchange (SSE) 180, 27 companies; South Africa – The Financial Times Stock Exchange (FTSE)/Johannesburg Stock Exchange (JSE) All Share index, 49 companies; the USA – New York Stock Exchange (NYSE) 100, 47 companies; and the UK – London Stock Exchange (LSE) 100, 47 companies). CSR disclosure is measured through CSR disclosure index. Five separate regression models are run to investigate the impact of the factors that affect the extent of CSR disclosure. Findings The findings reveal that CSR disclosure is influenced by factors both at micro and macro levels. Governance environment, globalization and income inequality are found to be significant determinants of CSR disclosure for developing countries. International listing significantly influences CSR disclosure in the developed countries. The results also exhibit that board with large proportion of independent directors, high presence of CSR committee and environmental sensitive industries are more likely to engage in CSR disclosure practices in developing as well as in developed nations. Research limitations/implications This study implicates that varied factors – at country level, industry level, firm level and CG level – need assessment to know their impact differently in countries at different stages of economic development. However, longitudinal study covering longer period would lead to better generalization of results. Practical implications The findings of this present study implicate that managers must evaluate country’s political, social and economic forces and not just rely on company-level indicators affecting disclosure. Policymakers in emerging nations must emphasize on improving country governance features to enhance CSR disclosure of companies. Developing countries must respect and conform to rules and regulations while going global. More endeavors should be made to raise awareness about the benefits of CSR disclosure on reducing income inequality among companies listed on stock exchanges of developing countries. Emerging nations should follow developed nations in assuming responsibility toward stakeholders in foreign markets. This study also recommends regulatory bodies in both developing and developed countries to frame stringent policies regarding CG for improving CSR disclosure by companies. Originality/value This study overcomes the limitations of prior literature by considering both country- and company-specific determinants in prominent group of developing (Brazil, Russia, India, China and South Africa) and developed (the USA and the UK) countries.

scholarly journals Country of market effect

2016 ◽  
Vol 12 (1) ◽  
pp. 7-14
Author(s):  
Shenyu Li ◽  
Rong Huang ◽  
Siva K. Balasubramanian
Keyword(s):  
Economic Development ◽  
Purchase Intention ◽  
Home Country ◽  
Emerging Market ◽  
Developed Countries ◽  
Future Research ◽  
Country Level ◽  
Level Of Economic Development ◽  
The Impact ◽  
Country Effect

Purpose: This article proposes and empirically tests the country of market (COMK) effect, which captures the consumer’s responses of home market to a country where the product is marketed. Design/methodology/approach: Study 1 applies a lab experiment about Chinese consumers’ purchase intention for printers marketed either in the US or China. Study 2 applies country level data to examine the impact of economic development of 22 host countries on the performance of 167 multinational retailers in their home country. Findings: Study 1 shows that the printers marketed in US attract a higher level of purchase intention than printers marketed in China. This COMK effect is more salient for printers manufactured in China than those manufactured in US. In addition, innovation and design factors corresponding to the host country’s image fully mediate the COMK effect. Results in Study 2 show that a retailer that markets its services in a host country with a higher (lower) level of economic development is likely to generate higher (lower) level of retailing performance in its home country. Furthermore, it is found that COMK effect is diminished as the level of economic development of a vendor’s home country increases. Research limitations/implications: In addition to the cognitive components of country image (e.g., design and innovation), consumers’ affective components may also influence the COMK effect. Future research could discuss the impact of consumer ethnocentrism and consumer animosity on consumers’ attitude towards the product marketed in other countries. Practical implications: Strategically, marketing products to a country with a favorable image could benefit vendors from an emerging economy. For manufacturers from developed countries, marketing a product within their own countries may enhance the associated innovation and design images while marketing the same product in an emerging market. Originality/value: This article proposes and tests a demand side country effect on consumers’ purchase intention for products marketed in other countries. It is in sharp contrast to the traditional country effect which focuses on the supply side effect (e.g., country of origin, country of manufacture, country of assembly etc.)

scholarly journals THE IMPACT OF REMITTANCES ON THE ECONOMIC GROWTH OF PAKISTAN AND INDIA

2018 ◽  
Vol 01 (01) ◽  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Migrant Workers ◽  
Home Country ◽  
Political Stability ◽  
Developed Countries ◽  
Economic Stability ◽  
External Finance ◽  
International Remittances ◽  
The Impact

The international remittances sent back to the home country by migrant workers have a profound impact on the developing countries of Asia, Africa, Latin America, and the Middle East. Official international remittances sent home by migrant workers represent the second most significant source of external funding in the developing countries. Remittances by the international migrants to their countries of origin constitute the largest source of external finance for developing countries after foreign direct investment (FDI) (Adams Jr, 2004). Hence, worker remittances have increased the investment opportunities in the migrant home country. (McCormick & Wahba, 2000), that in turn have promoted growth in less financially developed countries by providing an alternative way to finance investment (Giuliano & Ruiz-Arranz, 2009). This research is carried out to determine the impact of remittances on the economic growth of Pakistan and India since economic growth of these countries impact economic stability as well as political stability in the region.

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