The impact of political behaviours on internationalisation : the case of Australian companies internationalising to China

Purpose – The purpose of this paper is to test a model of cooperation between internationalising businesses and local and host country governments in the context of Australian companies internationalising to China.

Design/methodology/approach – The paper presents a model for the political dimensions of internationalising based on corporate political theory and the cooperative view of management. Data were collected from personal interviews with representatives from 40 Australian organisations with businesses or operations in China. The data were analysed using NVivo.

Findings – Assistance provided by the Australian government was often sought and was perceived to be beneficial. Most participants experienced policies and regulations which affected their entry modes. In ten cases they acted as barriers and significantly influenced entry mode choice. The majority of participants viewed the development of relationships with the Chinese government as important and employed a variety of relationship behaviours. Over half of the participants identified the need to understand and deal with the psychically distant government structures of the Chinese government, namely government intervention in business.

Practical implications – The model links the organisational objectives of businesses internationalising to China, understanding the political/regulatory environment, selecting an entry mode and developing/maintaining a successful business. To achieve these objectives corporate political behaviour must reflect the sovereign powers in place at the time.

Originality/value – The paper presents a model which develops the literature for the political dimensions of internationalisation. It also presents empirical data on the political dimensions of internationalising into China. These findings will assist businesses in understanding political factors when internationalising to China.

New insights into protein export in malaria parasites

In order to survive and promote its virulence the malaria parasite must export hundreds of its proteins beyond an encasing vacuole and membrane into the host red blood cell. In the last few years, several major advances have been made that have significantly contributed to our understanding of this export process. These include: (i) the identification of sequences that direct protein export (a signal sequence and a motif termed PEXEL), which have allowed predictions of the exportomes of Plasmodium species that are the cause of malaria, (ii) the recognition that the fate of proteins destined for export is already decided within the parasite's endoplasmic reticulum and involves the PEXEL motif being recognized and cleaved by the aspartic protease plasmepsin V and (iii) the discovery of the Plasmodium translocon of exported proteins (PTEX) that is responsible for the passage of proteins across the vacuolar membrane. We review protein export in Plasmodium and these latest developments in the field that have now provided a new platform from which trafficking of malaria proteins can be dissected.

Protein export in Plasmodium parasites : from the endoplasmic reticulum to the vacuolar export machine

It is somewhat paradoxical that the malaria parasite’s survival strategy involves spending almost all of its blood-stage existence residing behind a two-membrane barrier in a host red blood cell, yet giving considerable attention to exporting parasite-encoded proteins back across these membranes. These exported proteins are thought to play diverse roles and are crucial in pathogenic processes, such as re-modelling of the erythrocyte cytoskeleton and mediating the export of a major virulence protein known as Plasmodium falciparum erythrocyte membrane protein 1 (PfEMP1), and in metabolic processes such as nutrient uptake and solute exchange. Despite these varied roles most exported proteins have at least one common link; they share a trafficking pathway that begins with entry into the endoplasmic reticulum and concludes with passage across the vacuole membrane via a proteinaceous translocon known as the Plasmodium translocon of exported proteins (PTEX). In this commentary we review recent advances in our understanding of this export pathway and suggest several models by which different aspects of the process may be interconnected.

TQM and labour productivity in Jordanian industrial companies

Reports on research to determine the degree of application of total quality management (TQM) philosophy and practices in industrial corporations in Jordan. Uses primary and secondary empirical data to examine the link between TQM and labour productivity. Survey responses were classified into two groups: high-TQM implementation and low-TQM implementation. Found that mean labour productivity measurements for high-TQM companies were significantly higher than for low-TQM companies over the period 1993-1998. Also, mean growth rates of labour productivity measurements for companies with high-level TQM were higher than for those with low-level TQM during this period. Regression analysis demonstrated a statistically significant positive relationship between TQM and labour productivity.

Organisational determinants of employee turnover for multinational companies in Asia

High employee turnover rates among multinational companies (MNCs) in Asia have become an organisational issue, which cannot be sufficiently addressed at the individual level. In this paper, we examine the issue of employee turnover at the organisational level. A group of organisational variables (e.g., training, size, age, industry, percentage of expatriate managers and headquarters’ national base) were tested, using a sample of 529 MNCs in six Asian countries. The standard multiple regressions show that training, size, the length of operation in local subsidiary and nature of industry are significantly related to turnover. An effect of the percentage of expatriate managers present in the local subsidiary on employee turnover appears to be moderate. These results fill a research gap by identifying organisational variables (as opposed to individual characteristics) and contribute to better explanation of employee turnover at firm level. Implications to MNCs in the greater Chinese region and Asia are discussed.

Estimating import and export demand elasticities for Mauritius and South Africa

In this paper, we re-estimate the import and the export demand functions for Mauritius and South Africa using time series data. We use the bounds tests for cointegration and find evidence of a long-run relationship between import demand, income and prices for both countries. Our long run elasticities reveal that domestic income and relative prices have significant effects on the import demand for both countries, with income being the most important determinant. Furthermore, we find that while South Africa’s export demand is not responsive to relative prices or income; for Mauritius income is statistically significant.

People management challenges to multinational companies in Asia

This book discusses the contextual factors such as cultural and institutional settings that impact on effective people management practices in Asia. The challenges of multinational companies (MNCs) in the particular areas of attraction and retention, training and career development of the local skilled labour workforce are analyzed using the data of 529 MNCs in six Asian countries (namely Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand). The degree of challenges varies by country and sector. This book draws conclusions from the empirical research stating that cultural and institutional theories, as well as the convergence and divergence theses can explain at best, partially, reasons behind the different outcomes of people management or human resource management (HRM) practices across MNCs in different operations in the region.

Exploring training issues of multinational companies in Asia

Effective employee training is important to organisations as it improves quality of human resources, which in turn help achieve better organisational outcomes. The literature on education, training and other aspects of human resource development (HRD) among multinational companies (MNCs) in Asia is quite limited. This paper intends to explore training expenditure, training programs offered and training concerns indicated by companies, using a survey of 529 MNCs operating in six Asian countries (namely Indonesia, Malaysia, Philippines, Singapore, Thailand and Taiwan). The findings show that the majority of MNCs surveyed recognised the benefits of employee training and invested heavily on training different types of employees in local subsidiaries. Organisational variables such as size, industry, parent source and proportion of international activity also affected training practices of MNCs. The paper identified some quality and relevance issue related to formal and externally-conducted training programs.

Training practices of multinational companies in Asia

Purpose – The purpose of this study is to explore a range of training practices adopted by multinational companies (MNCs) operating in Asia. It investigated the level of training expenditure, the nature of training programs offered and the concerns about training in MNCs.

Design/methodology/approach – Data were obtained through a survey of 529 MNCs operating in six Asian countries to examine the average cost spent on training and the type of training programs offered to different groups of employees. The respondents were also asked to indicate their perceptions on the training provided and how effective the training has on firm performance.

Findings – It appears that MNCs invested significantly in training. Training was found to be more widespread in service organisations than manufacturing organisations operating in Asia. The majority of training emphasised managerial and professional staff development; and was generally conducted externally. Respondents were concerned mainly with the quality and relevance of training programs offered externally.

Originality/value – The results provide MNCs, especially those headquartered in European and other Western countries with insights into designing and offering more relevant and better quality training programs to their employees located in Asian subsidiaries.

Strategic people management of coal mining firms in Central Queensland

Purpose – This paper aims to propose a conceptual framework to explore the link between strategic human resource management (SHRM) and firm performance of the coal mining companies in Central Queensland (CQ), Australia.

Design/methodology/approach – The paper reviews literature relating to the process and issues of transforming human resource practices and industrial relations of the coal industry in Australia for the past decade. Theoretical development and empirical studies on the SHRM-performance linkage are discussed. Based on the literature review, the paper develops an integrated model for testing the relationship between SHRM and firm performance in the context of CQ's coalmines and proposes a number of research propositions.

Findings – Three perceivable outcomes are likely derived from application of this framework in the field. First, a testing of the linkage between strategic HRM and firm performance in the coal industry, using an integrated approach, would complement the empirical deficiency of treatments on the prior SHRM models. Second, data at firm level could be collected to develop a better understanding of how the adoption of strategic HRM practices in coal companies can affect firm performance. Third, the extent of flexibility practices, use of contractors and associated management practices could be identified.

Originality/value – The coal industry is central to economic development of regional Queensland. The industry contributes substantially to GDP via employment, investment and product export. An exploration of the impact of SHRM on the coal industry will likely result in identifying some best practices that could be potentially adopted in the wider business community to foster regional economic development in Australia and worldwide.

Design management methodology to strengthen firm and industry competitiveness in the construction design services export sector

The aim of this research was to investigate strategies deployed by successful construction design-related firms towards achieving high levels of firm competitiveness in international markets. A reflexive capability model, developed through a critical analysis of related internationalisation literature, is composed of three key areas; internationalisation process, market knowledge and design management. Firm reflexive capability is explored through the management of social, cultural and intellectual capital. The concept of reflexivity is borrowed from sociology. Reflexivity is reinterpreted as the ‘firm’s’ ability to be aware, responsive and adaptable to self, market and project needs assessment. A cross case analysis explored the barriers and success factors through three constructs; internationalisation process, design management and market knowledge of three firms. This paper demonstrates that international firm competitiveness is dependent upon the strategic inter-relational management of social, cultural and intellectual capital for maximum advantage of the utilisation and leverage of one form of capital to gain another. This leads to the development of increasing reflexive capability to support internationalisation. An outcome of this research is the identification of the central relation between a level of reflexive capability within the firm and the firm’s level of success in international markets. This research is part of an ongoing program of research on international collaborative practice. A Reflexive Capability Matrix was developed from the findings of one research project and then validated through a second research project (only the capability matrix is presented in this paper though). The reflexive capability approach is appropriate to all firms but what is speculated upon is that the reflexive capability is particularly intrinsic to small to medium sized construction design firms who work globally. A reflexive capability is a characteristic of successful and innovative firms internationalising and working within global models of practice.

Does accounting choice influence US investment in non-US companies? Evidence from US institutional investment in Australian companies

Previous research asserts that companies that choose accounting methods more familiar to investors reduce information asymmetry and increase credibility of their financial statements to those investors, thereby attracting higher levels of foreign investment. This study examines the variation in accounting policies associated with institutional investment in Australian equity. The results suggest that large US institutional holdings in Australian companies are associated with American Depositary Receipt listing and, incrementally, choice of accounting methods that conform to US Generally Accepted Accounting Principles (GAAP). Although making accounting choices in compliance with US GAAP is significantly associated with higher levels of institutional ownership in a statistical sense, examination of the specific differences in accounting choices suggests that the differences in informational content are relatively minor.

An analysis of trading in target stocks before successful takeover announcements

In this paper we examine both informed and contraire trading preceding successful takeover announcements on US target firms from 2001 to 2006. We find that both informed trading and contraire trading exist within the period preceding successful takeover announcements on the stock market, as evident through abnormal returns and trading volumes and on the option market by analyzing only abnormal trading volume. In regard to contraire trading, we investigate possible explanations for its existence. This study finds, through analysis of an unbiased sample of rumored target firms, that deliberate contraire trading appears to be profitable which is likely an explanation for such trading.