The regional focus of Asian multinational enterprises

In recent issues of this Journal a debate has raged concerning the appropriate nature of academic research in the Asia Pacific region. While we support the desire for both rigor and regional relevance in this research, we wish to demonstrate a strong commonality between the performance of large Asian firms and others from Europe and North America. This prompts us to question the need for a new theory of the MNE based on the experience of Asian firms. Like their counterparts elsewhere, the large Asian firms mostly operate on an intra-regional basis. While in the literature it has been assumed that the path to success for Asian firms is globalization, we show that the data supporting this is confined to a handful of unrepresentative case studies. We also present a bibliometric analysis which shows an overwhelming case study sample selection bias in academic studies towards this small number of unrepresentative cases

Public policy and foreign-based enterprises in Britain prior to the Second World War

This article examines the early evolution of British policy, prior to the Second World War. The British government adopted an ‘open’ policy towards foreign direct investment (FDI), despite periodic fears that some foreign acquisitions of UK firms in key sectors might be detrimental to the national interest, and a few ad hoc attempts to deal with particular instances of this kind. During the 1930s, when the inflow of foreign firms accelerated following Britain's adoption of general tariff protection, the government developed a sophisticated admissions policy, based on an assessment of the likely net benefit of each applicant to the British economy. Its limited regulatory powers were used to maximize the potential of immigrant firms for technology transfer, enhanced competition, industrial diversification, and employment creation (particularly in the depressed regions), while protecting British industries suffering from excess capacity.

The effectiveness of non-executive directors in Chinese state-owned enterprises

Purpose – The primary aim of this paper is to examine whether boards of directors with independent members function as effective corporate governance mechanisms in Chinese State-Owned Enterprises(SOEs), by analysing four characteristics of non-executive directors (NEDs) that impact on their effectiveness, namely their degree of independence, information, incentive, and competence. Design/methodology/approach – Being exploratory in nature, the research uses qualitative methods for data collection. It is based on an interpretivist perspective of social sciences, analysing and explaining the factors that influence the effectiveness of NEDs. Findings – The findings indicate that the NED system is weak in China as a result of the concentrated ownership structure, unique business culture, intervention of controlling shareholders and the lack of understanding of the benefits brought by NEDs. Research limitations/implications – The paper examines the salient features of and challenges to the system of NEDs of SOEs in present-day China. It provides an understanding of how the various perceptions of the board, gathered from in-depth interviews of corporate directors, leads to new interpretations of board effectiveness. The research, however, is limited owing to a relatively small sample size and the sensitive nature of the information collected. Originality/value – The study aims to fill gaps in the literature and contribute to it by assessing the “real” views and perceptions of NEDs in China in an institutional environment significantly different from that of the USA, the UK and other western economies.

The legitimacy of foreign investors: individual attitudes toward the impact of multinational enterprises

Purpose – This article aims to analyze individual attitudes toward the impact of multinational enterprises (MNEs) on local businesses. These individual attitudes are important in understanding voters' preferences, which studies show to affect governmental policies. MNEs' market entry location decisions are conditioned by the host's political environment. Moreover, MNEs' attempts to attain legitimacy in their host contexts ultimately affect their bottom line, so how the public perceive MNEs matters. Design/methodology/approach – Using a large-scale data set, the paper carefully delineates between a set of potential mechanisms influencing individual attitudes to globalization in the context of individuals' attitudes toward the impact of MNEs on local businesses. Findings – The article demonstrates that there is remarkable heterogeneity and complexity in individual attitudes toward the impact of MNEs on local businesses and that these attitudes differ across regions and across countries. It is found that better educated individuals, those employed in the private sector, and those who do not have nationalistic tendencies are more likely to consider that MNEs are not harming local firms, while the opposite holds for those who are employed in “less skilled” occupations, such as those working in plants or in elementary occupations. The article also provides evidence that individuals' attitudes are determined by more than the labor market calculations these individuals might have. In fact, the socializing influence of education and the socializing impact of the individuals' type/sector of occupation also significantly determine the individual attitudes under study. Originality/value – This area of research remains substantially under-developed in the literature that analyzes individual attitudes toward globalization, which focuses on individual attitudes toward trade and immigration. Thus, the article not only aims to broaden the work on individual attitudes toward globalization, but it also aims to facilitate further discussion on the specific topic of individual attitudes toward MNEs.