The evolution of innovation capability in multinational enterprise subsidiaries: dual network embeddedness and the divergence of subsidiary specialisation in Taiwan

This paper examines how innovation-related capabilities for production, design and marketing develop at the subsidiary level within multinational enterprises (MNEs). We focus on how subsidiary autonomy and changing opportunities to access internal (MNE) and external (host country) sources of capability contribute in a combined way to the accumulation of specialist capabilities in five Taiwan-based MNE subsidiaries in the semiconductor industry. Longitudinal analysis shows how the accumulation process is subject to discontinuities, as functional divisions are (re)opened and closed during the lifetime of the subsidiary. A composite set of innovation output measures also shows significant variations in within-function levels of capability across our sample. We conclude that subsidiary specialisation and unique subsidiary-specific advantages have evolved in a way that is strongly influenced by the above factors.

On the evolution of monopoly pricing in Internet-assisted search markets

This study examines the evolution of prices in markets with Internet price-comparison search engines. The empirical study analyzes laboratory data of prices available to informed consumers, for two industry sizes and two conditions on the sample (complete and incomplete). Distributions are typically bimodal. One of the two modes of distribution, corresponding to monopoly pricing, tends to attract such pricing strategies increasingly over time. The second one, corresponding to interior pricing, follows a decreasing trend. Monopoly pricing can serve as a means of insurance against more competitive (but riskier) behavior. In fact, experimental subjects who initially earn low profits due to interior pricing are more likely to switch to monopoly pricing than subjects who experience good returns from the start.

CSR: the co-evolution of grocery multiples in the UK (2005-2010)

Purpose – The purpose of this paper is to investigate if CSR is balanced between firm and wider society interests. Design/methodology/approach – A qualitative interpretive hermeneutic approach is used to analyse a variety of publically published secondary sources on the CSR of Tesco, Sainsburys, Morrisons and Co-operative in the UK grocery multiple sector (2005-2010). Findings – CSR strategic outcomes currently favour the firm more than society interests. A multilayered framework in the form of Social Responsibility of the Corporation (SRC) is designed and offered in support of balancing the business-society relationship more evenly. Research limitations/implications – This study is limited to firms originating from within the UK grocery multiple sector. Asda could not be included in the study as it does not publish CSR reports annually in the UK after becoming part of Walmart group. Practical implications – A framework for multi-level standardised definition of CSR in the form of SRC is offered. The inclusion of employees and members of the public on CSR/SRC boards is recommended to foster wider collaboration. The SRC framework promotes standardisation at global level while respecting diversity and firm heterogeneity at firm level. The findings may further contribute to GRI; UN Global Compact; WEF dialogues. Social implications – Recommendations are made to extend CSR board diversity for improved dialogue with communities. The SRC framework may be applied at global; national; industry and firm level. The framework can be applied internationally or locally. Future studies may offer quantitative attributes for balancing CSR/SRC. Originality/value – A globally unique and universally applicable framework for evaluating CSR activities is proposed. Future studies may extend the authors' framework to other industries, national environments or globally in the pursuit of balance between firm and society. Furthermore, firms may also adopt the framework to support CSR activities.

The evolution of green leases: towards inter-organizational environmental governance

Improving the environmental performance of non-domestic buildings is a complex and ‘wicked’ problem due to conflicting interests and incentives. This is particularly challenging in tenanted spaces, where landlord and tenant interactions are regulated through leases that traditionally ignore environmental considerations. ‘Green leasing’ is conceptualized as a form of ‘middle-out’ inter-organizational environmental governance that operates between organizations, alongside other drivers. This paper investigates how leases are evolving to become ‘greener’ in the UK and Australia, providing evidence from five varied sources on: (1) UK office and retail leases, (2) UK retail sector energy management, (3) a major UK retailer case study; (4) office leasing in Sydney, and (5) expert interviews on Australian retail leases. With some exceptions, the evidence reveals an increasing trend towards green leases in prime offices in both countries, but not in retail or sub-prime offices. Generally introduced by landlords, adopted green leases contain a variety of ambitions and levels of enforcement. As an evolving form of private–private environmental governance, green leases form a valuable framework for further tenant–landlord cooperation within properties and across portfolios. This increased cohesion could create new opportunities for polycentric governance, particularly at the interface of cities and the property industry.