Governance for sustainability: learning from VSM practice

Purpose – While there is some agreement on the usefulness of systems and complexity approaches to tackle the sustainability challenges facing the organisations and governments in the twenty-first century, less is clear regarding the way such approaches can inspire new ways of governance for sustainability. The purpose of this paper is to progress ongoing research using the Viable System Model (VSM) as a meta-language to facilitate long-term sustainability in business, communities and societies, using the “Methodology to support self-transformation”, by focusing on ways of learning about governance for sustainability. Design/methodology/approach – It summarises core self-governance challenges for long-term sustainability, and the organisational capabilities required to face them, at the “Framework for Assessing Sustainable Governance”. This tool is then used to analyse capabilities for governance for sustainability at three real situations where the mentioned Methodology inspired bottom up processes of self-organisation. It analyses the transformations decided from each organisation, in terms of capabilities for sustainable governance, using the suggested Framework. Findings – Core technical lessons learned from using the framework are discussed, include the usefulness of using a unified language and tool when studying governance for sustainability in differing types and scales of case study organisations. Research limitations/implications – As with other exploratory research, it reckons the convenience for further development and testing of the proposed tools to improve their reliability and robustness. Practical implications – A final conclusion suggests that the suggested tools offer a useful heuristic path to learn about governance for sustainability, from a VSM perspective; the learning from each organisational self-transformation regarding governance for sustainability is insightful for policy and strategy design and evaluation; in particular the possibility of comparing situations from different scales and types of organisations. Originality/value – There is very little coherence in the governance literature and the field of governance for sustainability is an emerging field. This piece of exploratory research is valuable as it presents an effective tool to learn about governance for sustainability, based in the “Methodology for Self-Transformation”; and offers reflexions on applications of the methodology and the tool, that contribute to clarify the meaning of governance for sustainability in practice, in organisations from different scales and types

In search of strategic assets through cross-border merger and acquisitions: evidence from Chinese multinational enterprises in developed economies

Drawing on multiple cases of cross-border merger and acquisitions (CBMAs) by Chinese multinational enterprises (CMNEs), we investigate their search of strategic assets in developed economies (DEs). It is a received view that CMNEs use CBMAs to access strategic assets in DEs so as to address their latecomer disadvantages and competitive weakness. This paper aims to identify the nature of strategic assets that sought after by CMNEs and the post-CBMA integration approach, a partnering approach, adopted in enabling access to these assets. The findings reveal that CMNEs possess firm-specific assets that give them competitive advantages at home and seek for complementary strategic assets in the similar domain, but at a more advanced level. The partnering approach helps securing these strategic assets through no or limited integration, giving autonomy to target firm management team, retaining talents and creating synergy

External networks and geographic clustering as sources of MNE advantages: Foreign and indigenous professional service firms in Central London

This study combines the theories of international business and management with network theory in order to examines the networking activities of foreign affiliates. It focuses on a specific kind of network, which is taking place between firms based in geographic proximity. A comparative analysis between foreign and indigenous firms in selected professional service industries located in Central London is used as the analytical tool to isolate the networking attributes of firms in general from those that are unique to foreign affiliates and emerge as a result of their specific characteristics. The findings suggest considerable differences between foreign and indigenous firms in terms of their network behaviour. MNE internal networks appear partially to replace the advantages provided by external networks, acting both to diminish the MNE's need for external linkages and channel it into somewhat different directions.networking, Multinational Enterprises, geographic clustering, Professional service firms, London

An analysis of core-competences of successful multinational team leaders

Copyright @ 2010 The Authors. This is the author's accepted manuscript. The final published article is available from the link below.Researchers have endeavoured to understand the factors that enable effective functioning of multinational teams (MNTs) but with few exceptions they have ignored studying the competences of MNT leaders. In this paper we present those competences leaders must possess in order to effectively lead MNTs. Our findings are based on 70 problem-centred interviews with MNT leaders and members from five multinational corporations. The competences our interviewees mentioned most frequently for effective leadership were knowledge management and transfer. Results further indicated that a leader must be cross-culturally competent and multilingual in order to motivate MNT members to fully explore, exploit and transfer valuable knowledge within the team and beyond

Reverse knowledge transfer and its implications for European policy

There is a growing international dispersion of R&D activities by MNEs for the purposes of maintaining and augmenting their knowledge assets. Firms need to tap into alternative knowledge sources , as home countries are rarely able to meet all their technological needs. However, accessing to foreign knowledge implies integration with the host country innovation system that requires considerable time and resources. Although asset-augmenting activities are seen as primarily benefitting the MNE, we argue that home country innovation systems can also benefit from reverse knowledge transfer. Policy makers need to promote these linkages and flows, rather than seeing R&D internationalisation as a threat to the home economy. New knowledge developed abroad by firms can and should be encouraged to be transferred to the rest of the firm and to the local environment of the home country.reverse knowledge transfer, R&D, innovation policy, EU

Regional Business Networks and the Multinational Retail Sector

In this paper we examine the network relationships of a set of large retail multinational enterprises (MNEs). We analyze under what conditions a flagship-network strategy (characterized by a network of five partners – the MNE; key suppliers; key partners; selected competitors; and key organisations in the non-business infrastructure) explains the internationalisation of three retailers whose geographic scope, sectoral conditions and competitive strategies differ substantially. We explore why and when retailers will adopt a flagship strategy. The three firms are Tesco and The Body Shop, two U.K.-based multinational retailers, and Moet Hennessy Louis Vuitton (LVMH), a French-based global retailer. We find evidence of strong network relationships for all three retailers, yet they embrace network strategies for different reasons. Their flagship relationships depend on each retailer’s strategic use of firm-specific-advantages (FSAs) and country-specific advantages (CSAs). We find that a flagship strategy succeeds in overcoming internal and/or environmental constraints to cross-border resource transfers, which are barriers to foreign direct investment (FDI). We provide recommendations on why and when to use a flagship-based strategy and which type of network partners to prioritize in order to succeed internationally.international retailing, flagship strategy, networks, LVMH, Tesco, The Body Shop, multinational, firm-specific advantages, regional strategy

The Role of Corporate HR Functions In Multinational Corporations: The Interplay Between Corporate, Regional/National And Plant Level

The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation processes. This paper thus explores the way in which HR practices come into being and how they are implemented and coordinated. These insights help us understand further the roles of international corporate HR functions that are being identified. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR managers, line managers and senior executives of six multinational companies in eight countries from September to December 2004. This data reveals new classifications of processes by which HR activities are developed, implemented and coordinated, both in terms of who is involved and how these processes are carried out

The perception of obstacles to innovation. Multinational and domestic firms in Italy.

This paper looks at the perception of obstacles to innovation of both multinational enterprises (MNEs) and domestic firms located in Italy. Drawing on data from the firm-level Italian CIS3, we first explore to what extent innovative behaviours are both firm- (i.e. foreign- versus nationally-owned multinationals, MNEs versus single domestic firms) and region-specific. We then examine whether the perception of obstacles to innovation varies among types of firms and regions.obstacles to innovation, multinational firms, innovation processes, regional location

The links between international production and innovation: a double network approach

This paper examines the changing role of multinationals in the global generation, adoption and transfer of innovation. It is argued that the combination of traditional asset exploiting objectives with increasing asset seeking activities entails a transition of multinationals towards a double network structure. On the one hand multinationals are more and more characterised by the interconnection of a large number of internal units that are deeply involved in the company’s use, generation and absorption of knowledge. On the other hand, units belonging to the internal network tend to develop external networks with other firms and institutions that are located outside the boundaries of the multinational firm, in order to increase the potential for use, generation and absorption of knowledge. Extending the analysis to a more general level, it is suggested that each of the external actors with which multinationals are interconnected across countries are themselves involved in extensive webs of relationships with other firms and institutions. By becoming embedded in different local contexts, multinational firms act as bridging institutions connecting a number of geographically dispersed economic and innovation systems. As a result, they are conditioned by, and contribute to, the evolution of different contexts in which they operate.innovation, multinational firms, networks.