Crisis, rigidity and nonliberal governance in Japan: the cases of Mitsubishi Motors and Kanebo

PurposeThe authors examine the nature of institutional rigidity and governance problems contributing to crisis and under-performance of large corporations in Japan during a period of environmental turbulence for corporate Japan.Design/methodology/approachThrough explorative case studies of Mitsubishi Motors and Kanebo over a 10-year period from the mid-1990s to the mid-2000s the authors see how informal norms deeply embedded in the Japanese business system prevented the adoption of more liberal forms of governance that may have helped to overcome crisis.FindingsDespite fundamental differences in formal organization between the two cases, there were similar underlying problems in terms of (1) mechanisms for capital investment that would underpin strategic resilience and rejuvenation and (2) management decision-making and strategic control during crisis.Research limitations/implicationsThe cases show how normative institutions rather than formal regulative institutions matter to strategic continuity in national business systems that are put under pressure.Originality/valueThe authors link informal norms of governance intrinsic to a country to the issues of strategic resilience and responses during crisis and warn against the retrenching to traditional governance approaches where there has been criticism of alternative governance approaches.

EXPRESS: Inter-Organizational Paradox Management: How National Business Systems Affect Responses to Paradox Along a Global Value Chain

This study discusses the relationship between inter-organizational paradox management, national business systems, and global value chains. Using case study evidence from a global value chain in the footwear industry (in Germany and China), we analyze how different businesses in the chain responded to the paradoxical tension arising from the competing demands to provide a living wage to workers and to uphold financial performance. Our findings highlight organizational responses to this paradox along the value chain, showing how these responses were shaped by the interplay of different types of pressures exerted by national business systems and the value chain itself. While these pressures were aligned in the German part of the chain, they were not aligned on the Chinese side. The study makes two contributions: (1) we develop a taxonomy outlining how the alignment of different types of pressures influences whether organizations choose either proactive or defensive paradox management; and (2) we argue that theorizing the impacts of cross-national distance on paradox management can be enhanced by adopting a multidimensional approach to institutional variety that extends beyond culture-based arguments.

Corporate Governance Meets Corporate Social Responsibility: Mapping the Interface

Despite ample research on corporate governance (CG) and corporate social responsibility (CSR), there is a lack of consensus on the nature of the relationship between these two concepts and on how this relationship manifests across institutional contexts. Drawing on the national business systems approach, this article systematically reviews 218 research articles published over a 27-year period to map how CG–CSR research has evolved and progressed theoretically and methodologically across different institutional contexts. To shed light on the full gamut of the CG–CSR relationship, we categorize and explore the nature of this relationship along two strands: (a) CSR as a function of CG and (b) CG as a function of CSR. Through this review, we identify key themes where CG–CSR research has lagged and account for under-explored contexts in this domain. Finally, we put forth a comprehensive agenda for progressing future research in the field.

A Country-Comparative Analysis of the Transposition of the EU Non-Financial Directive: An Institutional Approach

CSR practices and reporting vary across countries and companies. Accouting studies using institutional theory show that even where there are coercive pressures to converge, local practices and traditions are other types of pressures that play a role in maintaining divergence. Similarly, legal studies indicate that harmonisation attempts made by the European Union are usually challenged by States attempting to maintain the status quo of the local context, and this may also apply to CSR reporting harmonization.This research investigates whether or not the institutional pressure toward non-financial reporting harmonization represented by the Directive/2014/95/EU led to convergent behaviours between Member States, at least at the transposition stage. Transposition laws in Member States where CSR has historically played a limited role (i. e. Romania and Bulgaria) are compared with those issued by countries where CSR traditions are much more well developed (France, Belgium and the UK). The analysis focuses on how both mandatory and discretionary requirements have been transposed at a national level.The transposition outcome is analysed in the face of economic-, government- and society-related factors of each country and results show that on several occasions, divergence is catalysed by differences in national business systems. This is aligned with the results of previous studies (e. g. Jamali and Neville, 2011), which argue that historical, cultural, economic and political local contexts mould the CSR conceptualisation existing in a given country, and therefore the convergence of different CSR practices is only apparent.

Multilevel power dynamics shaping employer anti-sexual harassment efforts in Lebanon

Purpose The #MeToo movement against sexual harassment (SH) has sparked a sense of familiarity, and collective anger among women, highlighting it as a pervasive and common experience across the globe. The purpose of this paper is to argue that despite shared experiences and such transnational movements, the ways in which SH is actually understood and combated are likely to be different in disparate National Business Systems (NBS). Through the analysis, the authors unpack these differences by paying specific attention to the multilevel power dynamics shaping how employers and their key stakeholders understand and respond to SH in Lebanon. Design/methodology/approach Against the backdrop of the complex and inefficient Lebanese NBS, the authors adopt a cross-cultural feminist analytic framework and engage in an iterative qualitative analysis of over 208 pages of transcriptions from relevant multisector, multi-stakeholder interactive sessions. Based on the analysis, the authors propose a series of first- and second-order concepts and themes that help us to trace how power shapes local SH understandings and related efforts. Findings The findings highlight the simultaneous influence of power through geopolitical forces external to Lebanon (i.e. power over through North-centricism and othering; power to through comparative perspectives and SDG regulations), combined with local forces embedded within the specific NBS (i.e. power over through negative attitudes and NBS specificities; power to through positive business efforts and local multistakeholder mobilizing). Originality/value The findings demonstrate the importance of paying attention to the interaction between power, contextual embeddedness and geopolitical considerations in attempts to advance SH theorization.

Two-country study of engagement, supervisors and performance appraisal

Purpose Multinational enterprises are increasingly interested in improving employee engagement across diverse geographies, signifying the importance of understanding antecedents of engagement across different national business systems. This study aims to explore the relationship between an important job resource, perceived performance appraisal fairness and employee engagement in two countries: the UK and India. Critically, the mediating role of perceived supervisor support in these contrasting cultural contexts is investigated, as well as differentiating between two types of engagement: work and organization. Design/methodology/approach Drawing on a UK-based multinational enterprise operating in its home country and in India, survey data from 249 employees are analyzed. Findings The survey results indicate that there are positive relationships between elements of perceived performance appraisal fairness and engagement in both countries, and that supervisor support plays an important mediating role. There are, however, important differences between the two countries’ results. Research limitations/implications Cross-sectional data from a single firm are a limitation of this study, as well as using national culture as an explanatory variable although this is not measured. Future research should attempt to measure culture, especially in India, where cultural heterogeneity is high. Practical implications The study demonstrates the importance of ensuring appropriate mechanisms in different overseas operations to achieve engagement when implementing performance appraisal. Originality/value This study expands significantly our knowledge surrounding the engagement construct by including both work and organization engagement, measured simultaneously in two contrasting national contexts. Furthermore, it highlights the value of national business systems cultural theorizing to explain differences in employee workplace experiences.

Income Inequality, Entrepreneurial Activity, and National Business Systems: A Configurational Analysis

This article explores how and why high levels of income inequality result from configurations of different types of entrepreneurial activities and elements of the institutional context in a multicountry sample. A configurational approach is used to unpack the complexities associated with how income inequality arises from different types of entrepreneurial activities embedded in different institutional contexts associated with Whitley’s national business systems dimensions. The findings from fuzzy-set qualitative comparative analysis reveal that high levels of both high-growth and necessity entrepreneurial activity are associated with income inequality in certain contexts that are characterized by distinct institutional complementarities.