Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam

Foreign investors are expected to contribute to economic development through a variety of channels. However, many foreign investment operations are small, and almost insignificant in their impact on the local environment. An important indication of the potential contribution of foreign investors is thus their employment growth. Employees working for, and trained by, a multinational enterprise may become carriers of new technology and business practices. The more employees receive access to new knowledge, the more they in turn may spread the knowledge across the economy, for instance by setting up their own businesses. In this paper, we make a first step in investigating the determinants of this important mediating variable, employment growth. For a dataset covering four diverse emerging economies, we find that wholly-owned FDI operations have higher employment growth, while local industry characteristics moderate the growth effect.http://deepblue.lib.umich.edu/bitstream/2027.42/40093/3/wp707.pd

Challenging (Strategic) Human Resource management Theory

To fully understand the relationship between human resource management and performance in different contexts, we are in need of a synthesis between resource-based theory and new institutionalism. We argue that differences in institutional settings (between for example countries or branches of industry) affect the shaping of HRM. In this paper we develop a conceptual model (human resource based theory of the firm) that will be illustrated by means of empirical evidence on macro, meso and micro level. The model enables to analyze the interaction between industrial relations and human resource management at different levels (international, national, branch of industry, company-level) and how that affects the shaping of HR policies in a specific company. In this way the paper broadens the present HRM and Performance debate by explicitly taking into account factors that are decisive in shaping HR policies. Factors like the product-market-technology dimension, administrative heritage, the social-cultural-legal dimension and the dominant coalition with its degree of leeway.human resource management;performance;HRM theory;new institutionalism;resource based view

Education policy: process, themes and impact

Education policy is high on the agenda of governments across the world as global pressures focus increasing attention on the outcomes of education policy and on the implications for economic prosperity and social citizenship. However, there is often an underdeveloped understanding of how education policy is formed, what drives it and how it impacts on schools and colleges. Education Policy: Process, Themes and Impact makes these connections and links them to the wider challenges of educational leadership in a contemporary context

Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam

Foreign investors are expected to contribute to economic development through a variety of channels. However, many foreign investment operations are small, and almost insignificant in their impact on the local environment. An important indication of the potential contribution of foreign investors is thus their employment growth. Employees working for, and trained by, a multinational enterprise may become carriers of new technology and business practices. The more employees receive access to new knowledge, the more they in turn may spread the knowledge across the economy, for instance by setting up their own businesses. In this paper, we make a first step in investigating the determinants of this important mediating variable, employment growth. For a dataset covering four diverse emerging economies, we find that wholly-owned FDI operations have higher employment growth, while local industry characteristics moderate the growth effect.MNE, employment growth, control, institutions, FDI policy

How inter-firm networks influence the development of agglomerations

Non-market interactions are increasingly regarded as key explanations for spatial concentration. Consistently, both innovation and local knowledge spillovers play a central role in recent theories of agglomeration. According to these theories, exchange of localised knowledge gives firms an innovative advantage which results in better economic performance. However, it has turned out to be difficult to open the black box of economies of scale using empirical tests.\ud Since interactions get considerable attention in recent agglomeration theory, social network methods and theory are promising approaches to research spatial agglomerations. Even more so because simultaneously, there is an increasing emphasis on interfirm ties in the network field.\ud The goal of our research is to explore how interfirm networks influence the development of agglomerations. Firstly we provide a review on network and innovation literature in the field of spatial clusters. Secondly, we discuss measurement issues related to networks and innovation and ways to overcome them. Finally, we present preliminary results of our network study among high tech firms in the Dutch region of Twente

Does School Education Reduce the Likelihood of Societal Conflict in Africa?

This paper empirically tests the hypothesis that education, as measured by the average schooling years in the population aged 15 and above, reduces the likelihood of societal conflicts in Africa. It focuses on a sample of 31 African countries during 1960-2000 and uses both panel ordered probit and multinomial logistic estimation models. Using an aggregated measure of all intrastate major episodes of political violence obtained from the Political Instability Task Force (PITF) as proxy for conflict, and controlling for the extent of political participation, income inequality, labour market conditions, neighborhood e¤ects, different income levels, natural resource revenues, youth bulge, inflation, ethno-linguistic and religious fractionalisation and urbanisation; the results suggests that education e¤ectively reduces the likelihood of intra-state conflicts in Africa. This finding is robust to alternative model specifications and to alternative time frames of analysis. The evidence also suggests that, sound macroeconomic policies, by way of rapid per capita GDP growth, better export performance and lower in‡ation are means of effectively reducing the likelihood of conflicts while neighborhood effects are a significant driver of internal conflicts in African states. Therefore, in the battle to reduce the frequency of intrastate conflicts, African governments should complement investments in education with sound macroeconomic policies while seeking mutually beneficial solutions to all major internal conflicts, with a view to minimising their spill-over effects.School Education, Intra-state Con‡ict, Economic Development, Africa

Investigating the technology catching-up trajectory of Chinese Hi-Tech SMEs: an integrated framework from industry-, resource-, and institution-based view

Accepted for WLICSMB 2010Purpose This paper intends to review the literatures on the technology catching-up trajectory of latecomers in order to understand the innovation strategies of Chinese Hi-Tech SMEs (Gu & Tse, 2010; Xie & White, 2006; Chen & Qu, 2003; Lee & Lim, 2001; Kim, 1997). It also tries to construct an integrated framework to investigate their innovation strategies and the impact on organizational performance from the Industry-, Resource-, and Institution-based view (Peng, Wang, & Jiang, 2008). Design/methodology/approach The authors have reviewed papers published in the leading journals in the R&D field and proposed an integrated conceptual framework of innovation strategies of Chinese Hi-Tech firms based on Peng, Wang and Jiang (2008)’s institution-based view framework to examine the innovation strategy from Industry-, firm-specific Resource-based, and Institution-based View Originality/Value This paper pays attention to the institution factors in shaping Chinese SMEs to develop innovative capabilities. Chinese firms have comparative advantages, such as better comprehending Chinese local market, better understanding of local business environment comparing to MNEs. Our paper argues that by developing effective innovation strategies and improving innovative capabilities, Chinese SMEs will be able to survive from the severe competitions from state-owned enterprises and foreign firms in China

WP 85 - Multinationals versus domestic firms: Wages, working hours and industrial relations

This Working Paper aims to present and discuss recent evidence on the effect of Foreign Direct Investment (FDI) on wages, working conditions and industrial relations. It presents a. an overview of the available literature on the effects of FDI on wages, particularly in developed countries; b. the outcomes of own research comparing wages, working conditions and workplace industrial relations in Multinational Enterprises (MNEs) versus non-MNEs or domestic fi rms. These outcomes include seven EU member states: Belgium, Finland, Germany, the Netherlands, Poland, Spain, and the United Kingdom, and fi ve industries: metal and electronics manufacturing; retail; fi nance and call centres; information and communication technology (ICT), and transport and telecom. The data stem from the continuous WageIndicator web-survey, combined with company data from the AIAS MNE Database. The analysis took place in the framework of the socalled WIBAR-2 project, funded by the European Commission under the Industrial Relations and Social Dialogue Program (VS/2007/0534, December 2007-November 2008). The project was led by the AIAS, with the European Trade Union Confederation (ETUC); the European Metalworkers’ Federation (EMF); Ruskin College (Oxford); WSI im Hans-Böckler-Stiftung (Düsseldorf), and the WageIndicator Foundation as partners. Both from others’ and our own evidence, the picture emerged that the wage advantages emanating from working in an MNE in Northwestern Europe recently have become rather small, with our evidence for Germany, where we found considerable MNE wage premia, as the exception. In the majority of Polish and Spanish subsidiaries of MNEs these premia were still considerable. By contrast, in the retail trade and in transport and telecom MNEs seemed to exert outright wage pressure in some countries. Besides pay, workers mostly perceived advantages in working in an MNE where these were to be expected, in training and internal promotion, but also –rather unexpectedly-- in workplace industrial relations. Here, on all three yardsticks used (union density, collective bargaining coverage and the incidence of workplace employee representation) MNEs scored higher than domestic fi rms. MNEs scored less favourably on overtime compensation, working hours, and experienced and expected reorganisations. Where MNE wage premia show up, they have much in common with ‘effi ciency wages’, meant to buy higher productivity and extra commitment from (skilled) workers.