Parenting advantage in the MNC: An embeddedness perspective on the value added by headquarters

What determines the value an MNC’s headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters’ value creation. We find that headquarters’ investments into their own relationships with the subsidiaries’ contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters’ roles. Copyright © 2013 John Wiley & Sons, Ltd.

'The Grass is always Greener: Reflecting on Global Disparity in CSR'

The corporate landscape is ever changing. From the idea that the social responsibility of business was solely profit maximisation, toward the approach today, encompassing the inter-relationships of business, state and voluntary sectors through sets of relationships that transcend the nation state, the role of the corporation in society is being constantly remoulded to incorporate changes in said society. This evolution has benefitted many through the various Corporate Social Responsibility (CSR) programmes that have been promoted by various Multinational Corporations (MNCs).

This article argues that whereas many have benefitted from these policies, social responsibility can only be a by-product of the corporation. CSR exists as a powerful marketing tool and merely represents the repackaging of profit maximisation. This article will track the development of CSR in recent years. Noting that there is some disparity in regional trends for CSR, the article will then focus on how governments have enhanced the development of CSR practise within their nation states. This highlights a significant issue: if corporations are truly global in nature, why is there such a disparity over the level and intensity of CSR in differing nation states? As this article suggests, the role of government, the rise in power of the multinational corporation, together with the “strength” of that economy, the size of the population in that region, all impact on how robust, or otherwise, CSR is. What this highlights therefore is that CSR cannot be a form of regulation in its own right, and instead is a tool for profit maximisation, with social good being a by-product.

Corruption and subsidiary profitability: US MNC subsidiaries in the Asia Pacific region

Would multinational corporation (MNC) subsidiaries be more profitable in host countries where corruption is less severe? Would MNC subsidiaries be more profitable in less corrupt countries if they focus on local sales? This paper examines the impact of the level of corruption on the profitability of US MNCs in the Asia Pacific region. Using foreign direct investment (FDI) data archived by the US Bureau of Economic Analysis and corruption data reported by the World Bank, we find that MNC subsidiaries located in countries with a lower level of corruption are more profitable. In addition, MNC subsidiaries with a greater focus on local sales are more profitable when the corruption level is low. This study contributes to the literature by showing that when local sales are important to MNC subsidiaries, a lower level of corruption by host countries positively affects the profitability of the MNC subsidiaries.

A multinational, randomised, 12-week study comparing the effects of donepezil and galantamine in patients with mild to moderate Alzheimer's disease

To compare directly, in the same patient cohort, the ease of use and tolerability of donepezil and galantamine in the treatment of Alzheimer's disease (AD), and investigate the effects of both treatments on cognition and activities of daily living (ADL).

Multilateralism and the Multinational Enterprise

How do multilateral institutions influence the strategic choices and actions of international managers? This paper addresses the question by exploring the impact of the World Trade Organization's (WTO) decision-making process on multinational enterprises (MNEs). We discuss the three phases of the WTO decision-making lifecycle - the formulation of trade rules, the implementation of those rules, and the enforcement of the rules – and propose a strategic adjustment framework for understanding how companies alter their strategies and structures in response to the WTO's rules and operations. We argue that the increased relevance of multilateral rules and enforcement mechanisms – embodied in the WTO - is an important influence on MNE strategies and structures because of the increasing embeddedness of the WTO in national levels of regulation. We illustrate this through examples taken from the pharmaceutical, textiles and sugar industries sectors that have witnessed substantial multilateral regulation.

Oil on Troubled Waters-Multinational Corporations and Realising Human Rights in the Developing World with Particular Reference to Nigeria

This article examines the current state of tension in the Niger Delta of Nigeria. It locates the current unrest in the continued denial of economic, social and cultural rights to the oil-rich communities in the area. The author argues that this denial happened with the complicity and acquiescence of the international community. The Nigerian government as well as multinational corporations operating in the area have not been responsive to the development needs of the people. The article argues that, although the primary obligation for realising the economic, social and cultural rights of host communities rests on the government, multi-national corporations in developing countries, considering their awesome resources and influence on government policies, should be similarly obligated to respect, promote and protect those rights.