Do we buy more or less when we want to learn? The knowledge strategies and structural forms of US cross-border acquisitions

Cross-border acquisitions may be a primary mode for accessing novel knowledge and the building up of knowledge capabilities. However, the successful exploration of novel business and/or location knowledge may require specific structural forms for the incorporation and internal transfer to occur. In this paper we examine the relationship between the knowledge strategy and the structural form of the acquisition, specifically the degree of equity acquired. Our analyses of 439 US cross-border acquisitions revealed a curvilinear effect of location-related knowledge exploration but a linear effect of business-related knowledge exploration on the structural form of cross-border acquisition. We conclude that the knowledge strategy, and perhaps the type of knowledge being sought, is related in complex manners to the structural form adopted.cross-border acquisitions, knowledge strategy, equity ownership, structural forms, learning

A culturally synergetic approach to international Human Resource Management: implementing an integrated approach.

An integrated approach to IHRM tries to create a HRM system with substantial global integration combined with local differentiation. How to successfully implement such an integrated IHRM approach is the focus of this paper. The literature indicates three issues that need to be addressed: finding the balance between global integration and local responsiveness, understanding the cultural embeddedness of HRM practices and assessing the underlying power dynamics. Our suggestion is a culturally synergistic approach to IHRM. This approach is being presented by identifying the crucial steps in the decision making process and discussing guidelines on when and how to intervene.Human resource management; Resource management; Management; International; Integration; Decision making; Processes;

Corporate brand strategy: drivers and outcomes of hotel industry’s brand orientation

The MNC resellers are vastly competitive and capital-intensive. Based on the corporate brand orientation, the objective is to investigate how the individual dimensions of hotel industry’s brand orientation can improve a corporate experience and subsequently create superior hotel performance and retailer preferences. A model of the integration of the hotel industry’s brand orientation was tested in a survey conducted among MNC resellers from hospitality industry. Structural equation modelling was applied to gain insight into the various influences and relationships. The research makes two main contributions. It makes a theoretical contribution by classifying the integration of the hotel industry’s brand orientation for hospitality industry and from this extrapolate key suggestions for further study. The continuous evolution and economic influence of the hospitality industry require the application of innovative marketing practices

The Process and Outcome of Negotiations With Multinational Corporations: A Conceptual Framework For Analysis

The essential purpose of this paper is to provide a conceptual framework for case studies aimed at outlining the main stages in the process of negotiations; indicating some of the main factors affecting the relative bargaining position of the parties to negotiations with multinational corporations; and providing indices for evaluating the resulting structure of the distribution of gains from the projects contemplated by such negotiations. The paper thus combines elements from the second, third and fourth categories of studies on negotiations

The Tangible Contribution of R&D Spending Foreign-Owned Plants to a Host Region: a Plant Level Study of the Irish Manufacturing Sector (1980-1996)

Using plant level data from the Irish manufacturing sector, we explore the relationship between foreign direct investment (FDI) and economic growth in Ireland. The central question explored in this paper is whether the tangible contribution of MNC plants which undertake R&D investment in Ireland is greater than the tangible contribution of MNC plants which undertake no R&D investment. We conclude that the scale of R&D activity in a plant is an important determinant in (i) lengthening the duration over which that plant will remain in Ireland and (ii) in improving the quality of employment created in that plant.

Multinational Corporations and Lesser Developed Countries — Foreign Investment, Transfer of Technology, and the Paris Convention: Caveat Investor

In recent years, the growth of multinational corporations (MNCs), has been a source of increasing concern in the international community. In an effort to achieve economic independence from these major suppliers of technology, many lesser developed countries (LDCs) have enacted stringent investment and transfer of technology codes. The proliferation of such types of regulation has become a thorn in the relations between developed and underdeveloped nations. These codes and laws have been enacted, however, to rectify perceived inequities and abuses fostered by MNCs. The transfer of necessary knowledge and technology to LDCs has been accompanied by a multitude of restrictions on their use; oftentimes economic resources are depleted in return for inappropriate technologies. Large-scale transfers of technology from MNCs have had the effect of inhibiting the development of indigenous technology creating a danger of perpetual technological dependence upon developed countries. Investment and technology codes, however, are double-edged swords. While alleviating technological dependence and controlling the depletion of economic resources, these laws have, in some instances, created a disincentive for potential investors to invest their capital in the enacting state. MNCs acting as investors within LDCs have produced ample benefits. New technology is imported; employment and training are provided for the labor force; new and necessary products are imported. Some commentators have concluded that the disincentive thus created will greatly reduce benefits enjoyed by LDCs as well as by developed nations

An evaluation of the use of currency options as an alternative hedging strategy to forward exchange contracts for the management of foreign exchange risk in a multinational firm.

Thesis (M.B.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.Currency exposure has become a widespread issue as more corporations of all sizes source and sell in overseas markets and compete both at home and abroad with international companies. Very few companies are unaffected by currency risk, whether directly or indirectly. Businesses that source products from foreign countries face the risk that exchange rate movement will erode gross margins if competition prevents selling prices from rising in tandem, while resource-based companies face the uncertainty associated with the fact that the world's commodities markets are denominated in US Dollars or Pounds Sterling while their costs are often denominated in their local currencies. Businesses that ignore exchange rate volatility expose themselves to unnecessary risk, which could have significant consequences if exchange rates suddenly move unfavourably. The volatility of the South African Rand over the past few years is forcing treasurers and other managers responsible for international trade to look anew at how South African exchange rate fluctuations affect their company's results. Many companies have suffered from the effects of fluctuating exchange rates; some have reported losses running into millions of Rand. While more and more firms realize that they should manage foreign exchange risk, not all of them have come up with an appropriate management strategy. There has always been a great deal of debate over the best approach to hedging, or the best methods to forecast exchange rates; however hedging is of the utmost importance for companies. With the recent volatility of the rand, the multinational firm covered in this thesis, showed foreign exchange losses amounting to several millions, using forward exchange contracts to cover its high foreign exchange exposures. The major disadvantage of the forward contract as experienced by the firm and shown in this thesis is that it is a legally binding agreement and thus the firm was bound to accept the agreed exchange rate and also the fact that the exchange itself had to be done. If the commercial reason for the exchange disappeared, the cost of cancelling the forward contract would be quite high. In addition, if the exchange rate at maturity was more favourable to the firm than the one agreed to in the forward contract, the firm will still have to honour the contract and will not be able to take advantage of the favourable exchange rate. Thus, with FEC there is the elimination of the opportunity for profit, should exchange rates turn out favourably. When purchasing a currency option, however, the holder is protected from downward movements in the exchange rate whist still having the opportunity to benefit if the currency moves favourably. Hence, the purpose of this thesis was to evaluate the use of currency options as an alternative hedging strategy to forward exchange contracts to manage the firm's foreign exchange risk. It was found that, had the firm used currency options as compared to FEC over the last four years, the firm would have made significant saving in spite of the option premium. The firm would have enjoyed the flexibility offered by currency options, that is, to let the contract lapse when it would not be to the firm's advantage thus making a lower payment for its imports than would be paid under the forward exchange contract for the same period. The results were tested over a period of four years to prove that the difference in payments using the FEC and the currency options were statistically significant. What was apparent from the research, however, was that though the multinational firm could choose from a vast array of financial instruments and currency derivatives to manage its foreign exchange risk, the firm chose to stick to using forward exchange contracts. The reasons varied from fear of dealing with the complexities of the many instruments available on the market to the limited resources within the foreign exchange department to understand the technicalities of the various instruments. The investigation revealed though forward cover as used by the firm was more efficient in terms of ease of use. Currency options when applied to cover the firm's foreign imports resulted in less cash outflow, making it better and more profitable than forward exchange contracts. Options contract, though more expensive, would have allowed the firms to let the option lapse and therefore benefit from spot exchange rates if these were more favourable

Cross cultural perspectives of decision-making and control in multinational corporations operating in ASEAN

Kajian ini membincangkan isu-isu persekitaran budaya negara ASEAN dan cabaran-cabarannya terhadap pengurus-pengurus korporat multi-nasional. Kajian ini melaporkan penemuan terhadap corak membuat keputusan, kawalan dan pengurusan budaya serta aspek gelagat. Walaupun penemuan ini mempunyai persamaan dengan kajian lain, namun terdapat perbezaan dalam corak membuat keputusan, kawalan dan pengurusan budaya serta aspek gelagat

Modelling the multinational corporation

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