Tensions in the strategic integration of corporate sustainability through global standards:Evidence from Japan and South Korea

International audienceDespite the importance of the conflicting dimensions of corporate sustainability for business strategy, little is known about the tensions that derive from adopting global environmental and social standards in East Asia. Through 65 in-depth interviews conducted in Tokyo and Seoul, this article examines the tensions—and reactions to these tensions—of corporate sustainability managers tasked with the implementation of such standards in Japanese and South Korean multinational corporations. These represent key contexts of inquiry because of their normative tradition of corporate sustainability and geographical closeness. While elucidating that corporate sustainability managers in both countries encounter societal-commercial, traditional-modern, and individual-collective tensions, the article describes the ways they react differently to these tensions. This article contributes to the literature on corporate sustainability and tensions and the contextual literature on corporate sustainability in Japan and South Korea, ultimately offering takeaways for the strategic planning of multinational corporations

The rhetoric of the consumer and customer control in China

This article explores the extent to which the rhetoric of the sovereign consumer and the use of the customer as a device of managerial control have been transferred to the subsidiaries of multinational retail firms operating in China. Based upon data drawn from over 200 interviews conducted at UK and Japanese multi-nationals' stores, in this rapidly internationalizing context it was evident that the notion of the sovereign consumer was ubiquitous and procedures designed to inculcate management by customers or consumer control had been implemented. However, it was equally apparent that the rhetoric of the consumer not only served managerial ends, but also provided a rich and fertile resource for shopfloor workers. Meaningful, socially embedded relationships could also play a crucial role in transactions. Moreover, with respect to discipline and control, employees were fully aware that power lay with their managers, rather than disembodied consumers or even actual customers

Demanding customers in the Chinese context

This research explores the unexpectedly demanding nature of local customers in foreign invested retail stores in China. Data are drawn from interviews conducted with over 200 local and expatriate staff at UK and Japanese-invested stores. The study briefly outlines China’s retail sector, provides case study examples of ‘demanding’ customers and then suggests factors that might account for these characteristics. In particular, it highlights the extent to which China’s marketplace is characterized by low trust. Finally, the work notes that China’s demanding customers influence the nature of firms’ service provision and have positive consequences for staff training and skills upgrading

INTRODUCING WESTERN HUMAN RESOURCE MANAGEMENT PRACTICES TO CHINA: SHOPFLOOR WORKERS' PERSPECTIVES

The management of host country employees is often portrayed as a particularly fraught dimension for multinational firms. The problems involved are considered exponentially greater when there are substantial institutional differences and 'cultural distance' between the host country and a firm's parent country, as is assumed to be the case for Western firms operating in China. Based upon detailed case study research conducted at a UK-invested firm in China between 1999 and 2003 and a comparative study of a Chinese state-owned firm, this paper explores the veracity of such assumptions. The findings indicate that Western human resource management practices can be transplanted successfully and questions the degree to which foreign-invested enterprises need to adopt 'the Chinese way of doing things'. Indeed, such practices can be innovative in the Chinese context and provide a competitive source of differentiation for multinationals as employees

The diffusion of HRM practices in East Asia: Chinese workers in multinational retail firms from Japan

Research on the diffusion of organisational practices in multinational enterprises has focussed largely on manufacturing firms in economically developed countries. This paper explores the transfer of human resource management and customer service practices to China by Japanese multinational retail firms. Such firms face competing pressures, the imperative and potential advantages of implementing the default position of taken-for-granted, well tried parent country practices are set against the necessity to gain legitimacy in host environments and to meet the needs and expectations not only of local employees but also customers. The findings highlight the complexity of transfer and indicate that local labour markets constitute a greater barrier to diffusion than cultural differences between multinationals’ parent and host countries

Introducing Western-style HRM practices to China: Shopfloor perceptions in a British multinational

The management of host country employees is often portrayed as a particularly fraught dimension for multinational firms. The problems involved are considered exponentially greater when there are substantial institutional differences and "cultural distance" between the host country and a multinational firm's parent country, as is assumed to be the case for Western firms operating in mainland China. Based upon detailed case study research conducted at a UK-invested firm in China between 1999 and 2003 and a comparative study of a Chinese state-owned firm, this paper explores the veracity of such assumptions. The findings indicate that Western human resource management (HRM) practices can be transplanted successfully and questions the degree to which foreign-invested enterprises (FIE) need to adopt "the Chinese way of doing things". Indeed, such practices can be innovative in the Chinese context and provide a competitive source of differentiation for multinationals as employees.China Multinationals Human resource management Expatriates Retail sector

National Differences or Sector Effects? HRM in Japanese and UK Retail Multinationals in China

This paper seeks to assess whether national differences or sector effects best account for the pattern of HRM found in multinational firms. From a theoretical perspective, UK and Japanese firms are constituted by significantly different institutional and business logics. While the former is an exemplar liberal market economy, the latter is a coordinated market economy. Japanese firms are considered to have a long-term orientation, with labour regarded as a fixed cost, extensive training and strong internal labour markets. The UK system is typically characterised by firms operating on a more short-term basis, with high labour mobility and limited investments in human resource development. Sector effects, by contrast, would suggest that firms operating in the same business sector, using similar categories of employees, are likely to exhibit similar modes of HRM. Using survey data from 859 staff and managers at the subsidiaries of UK and Japanese retail multinational firms in China, the findings indicate little support for either the effect of sector or anticipated ‘national models’. Instead, while some results are contrary to expectations, most are characterised by lack of consistency

Organizational commitment of Chinese employees in foreign invested firms

Organizational commitment has been studied extensively in Western management research. Much less is known regarding organizational commitment in non-Western environments, in particular in the retail sector. In the present study, we seek to understand if organizational commitment differs between various cultures by exploring the organizational commitment of local employees in the China-invested stores of a UK multinational retailer and its relationship with employees’ willingness to stay. The data is drawn from a survey of 394 employees at four stores owned by this firm and three month’s in-depth ethnographic study at one of these stores. The paper tests several hypotheses based on the literature and taking into consideration of several elements with ‘Chinese characteristics’, i.e., relationships, ‘face’ and job security. The current research provides added insights by combining survey data with in-depth ethnographic data. Amongst the most notable findings of this research are, firstly, loyalty to organisation and belief in company’s values are not associated with employees’ willingness to stay; and secondly, feeling proud of working for the company, good relationship between management and employees, and job security are good predictors of employees’ willingness to stay. These findings indicate the need for management to consider what is important to employees, in terms of building employees’ organisational commitment, and their willingness to stay