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We study the effect of domestic corporate tax on firms' outward direct investment (ODI) decisions. We exploit a tax unification reform in China that raises corporate income tax rates on foreign‐funded firms but reduces those on domestic Chinese firms. Using a difference‐in‐differences estimator that compares the ODI of foreign affiliates and joint ventures with private domestic firms before and after the reform, we find that a higher domestic corporate tax rate increased the ODI of foreign firms, particularly for joint ventures with Chinese majority shareholders. We show evidence that the increases in firm ODI reflect production relocation out of China. [ABSTRACT FROM AUTHOR]

One of the most significant developments in international business in recent years is the dramatic expansion of Chinese – often state-led or state-supported – investment in Africa. While we know something of Chinese multinational enterprises' strategies, we know comparatively little about their work and employment practices and even less about their influence on western multinational companies (MNEs). We examine these important issues by looking at the practices of a major Chinese MNE alongside those of a French MNE and a US MNE in Cameroon's oil industry. We find that while the French and American MNEs were successful in importing their preferred practices and in evading host-country regulations for many years, this was challenged upon the arrival of the Chinese MNE. We query why and by what means did the entrance of a major MNE lead to significant changes in the behaviours of long-resident MNEs. The translation of the identified effects is explained by drawing on different levels of analysis that include an appreciation of the location of the MNE and the state within the international political economy of capitalism, attendant shifts in the frontiers of political influence, isomorphic institutional influences, actors' postures within and beyond the MNE, and their relational interplay. [ABSTRACT FROM AUTHOR]

How can countries successfully engage in global production networks? We provide a Computable General Equilibrium analysis of the impact of FDI on global production networks in Textiles, Chemicals, Electronics and Machinery, dividing the world economy in six regions (China, East Asia, Japan, EU28, the U.S. and the group of Emerging and Developing Economies). Interestingly for the policy maker, although the four sectors have contrasting production technologies, their Chinese exports and imports still follow a similar trend: East Asia and Japan are Chinese main intermediate suppliers while the US, Europe and the Emerging and Developing Economies play more the role of final markets. FDI inflows have benefitted China and we quantify by how much they have raised Chinese wages, GDP, national income and export competitiveness. By contrast, being an intermediate supplier or playing mostly the role of big final market in the network is not enough to succeed in your integration with China. The extent of the (positive or negative) effects is very much related to whether the structure of production (i.e., sectors' weight in GDP) of the different economies is similar to (and therefore more easily crowded out by) Chinese booming sectors. [ABSTRACT FROM AUTHOR]

This paper explores the role of ideology in attempts to influence public policy and in business representation in the EU-China solar panel anti-dumping dispute. It exposes the dynamics of international activity by emerging-economy multinationals, in this case from China, and their interactions in a developed-country context (the EU). Theoretically, the study also sheds light on the recent notion of 'liability of origin', in addition to the traditional concept of 'liability of foreignness' explored in international business research, in relation to firms' market and political strategies and their institutional embeddedness in home and host countries. Through a qualitative analysis of primary and secondary materials and interview data with key protagonists, we provide a detailed evolution of the case, the key actors involved and their positions, arguments and strategies. This illustrates the complexities involved in the interaction between markets and ideologies in the midst of debates regarding different forms of subsidy regimes for renewable energy, free trade versus protectionist tendencies by governments, and the economic and sustainability objectives of firms and societies. The case shows how relative newcomers to the EU market responded to overcome a direct threat to their business and became, with support from their home government, active participants in the public debate through interactions with local commercial partners and non-governmental organisations. Firms adopted relatively sophisticated strategies to reduce their liabilities vis-à-vis host-country institutions and local stakeholders, including collective action, to increase their legitimacy and reputation, and counter ideologically based attacks. We also discuss implications and limitations. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to investigate how rapid tourism growth in Macao affected local small and medium-sized enterprises (SMEs). The liberalization of the gaming industry to multinational corporations (MNCs) in 2002 led to a sevenfold increase in foreign direct investments (FDI) in Macao.Design/methodology/approach A survey grounded in issues concerning how SMEs adapt to the effects of FDI in Macao was carried out by interviewing managers of local SMEs, MNCs and an SME association. Information from various published sources was also consulted to complement and update the analyses.Findings Findings revealed that the emergence of investments by MNCs in Macao brought favorable and unfavorable effects to local SMEs. Local SMEs were challenged in terms of recruiting and retaining human resources, given the attractive salaries and training offered by MNCs. Equally challenging for local SMEs was the effect of economic growth on the costs of property space in Macao’s small territory. However, local SMEs have advantages when collaborating with MNCs as the former serves as important partners in networking. Local SMEs can collaborate quicker with their network of local stakeholders which MNCs lack and need. The government and various stakeholders will need to continue their role in developing the capacities and capabilities of local SMEs.Research limitations/implications The research study has important public policy implications on structuring the foreign labor and property needs of local SMEs.Originality/value This paper provides insights on the challenges SMEs in small-open economies experience during rapid tourism growth fueled by MNCs, and some policy recommendations are proposed. [ABSTRACT FROM AUTHOR]

Today, multinational and domestic corporations in many industries are no longer self-contained vertical structures with permanent staff, but increasingly are horizontal organizations with fissured employment characteristics using outsourcing, franchising, and subcontracting with contractors and chains of subcontractors. Too often, the workers of the subcontractors suffer the consequences of the subcontractors' cost cutting measures, work in unfavorable conditions, and have low wages and few benefits, all for the purpose of serving the interests and profitability of the primary corporation. This paper therefore focuses on domestic laws that provide workers with an additional avenue of remedy from an expanded employment relationship--a doctrine of joint employer liability that places obligations "up the chain" on the in-country originating contractor who benefits from the supply chain or operates it for the benefit of the offshore multinational corporation. Some form of this doctrine is already used to provide workers with wage remedies against Chinese construction companies and to provide dispatch workers wage and "employee" benefit remedies. Given China's extensive role in multinational supply chains, this paper examines the doctrine of joint employer liability up the chain and evaluates whether it can be expanded in China to remedy labor law violations and protect workers in the labor supply chains. [ABSTRACT FROM AUTHOR]

We study the profiles of Chinese investors in Spain. To this end, we rely on firm-level data and on primary data obtained through a questionnaire. We focus on projects in manufacturing, renewable energy and wholesale and retail trade. Chinese firms investing in manufacturing aim to acquire and develop new capabilities and to access not only the Spanish market but also other markets inside and outside the EU. Chinese investors in renewables are also export-oriented but, unlike firms in other sectors, they particularly appreciate the qualifications of Spanish workers. In wholesale, Chinese firms are more attracted by Spanish consumers: their main interests consist in acquiring new capabilities, making their brand known and supporting their exports to Spain. The present study might be useful for practitioners seeking to better understand the strategy, opportunities and risks of these new players in the Spanish market. [ABSTRACT FROM AUTHOR]

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This paper contributes to the literature on Chinese and Indian multinationals investing in Europe through an empirical investigation about their identity, their characteristics and the association between their features and their international strategies. The investigation exploits a database, named EMENDATA (Emerging Multinationals’ Events and Networks DATAbase), at the level of the investing firms. In relation to the mode of entry, we find that greenfield investments are a more likely option for large-sized companies. Moreover a high propensity for innovation is associated with a high probability to enter with an acquisition and with technological asset-seeking investments. Finally, high profitability is needed to invest in the EU-core countries. [ABSTRACT FROM PUBLISHER]

This study aims to enhance our understanding of gender and employment in China. Analysing data collected from over 1,800 employees at 22 foreign-invested and locally owned retail stores in eight Chinese cities, it firstly explores whether, like their counterparts in Western countries, female employees have higher levels of job satisfaction than their male colleagues. Secondly, it distinguishes the key differential predictors of female and male employees' job satisfaction levels. This article extends gender role theory on job satisfaction by showing how traditional values, the structure of work and a nation's dominant gender ideology combine to shape women and men's job satisfaction and work experiences in a transitional context. [ABSTRACT FROM AUTHOR]

Calls for reform of the Chinese healthcare system are voiced at the highest levels of the Chinese government, but reform cannot succeed unless policymakers confront the incentives for corruption built into the institutional structure of the healthcare system. Focusing on the markets for pharmaceuticals and medical equipment, this article isolates the special features of the Chinese healthcare system that are conducive to corruption. Without denying the responsibility of individual corporate representatives (both domestic and foreign), middlemen, and healthcare professionals, this article looks beyond the individual deals to document the underlying incentives for corruption by hospitals, physicians, and companies and explains how corrupt practices are currently organized. Finally, we argue that curbing the prevalent corruption requires efforts from both private companies and from the government. [ABSTRACT FROM AUTHOR]

This article focuses on the extant corporate social responsibility (CSR) practices in the oil and gas industry in Nigeria. The oil and gas sector of Nigeria has been beset by a lot of problems not limited to violence, kidnappings, eco-terrorism, and maladministration amongst others. One way of curing the inherent problems is the use of CSR by many oil multinational corporations (MNCs) operating in Nigeria. This article focuses on the Chinese oil irms operating in the oil and gas industry in Nigeria and investigates if they operate on the same basis as the Western irms. It seeks to determine whether the variants of CSR practised by non-Western irms in Nigeria have had negative or positive impacts in the oil and gas industry especially with China's contribution to Nigerian economy. [ABSTRACT FROM AUTHOR]

This article addresses how foreign subsidiaries formulate their relational political strategy by responding to the unique parameters of the economic and institutional environment in an emerging market in an attempt to improve their performance. To this end, the authors have developed a model that assesses economic environment antecedents characterizing an emerging market (regulatory distance, industry accessibility, environmental uncertainty, and economic development) as well as the performance consequence of the subsidiaries' relational political strategy. A possible moderating effect of the firm's reputation in the host country and length of operations on the relationship between political strategy and local performance is also examined in the model. Our analysis of primary and secondary data concerning 358 foreign-invested enterprises in China generally supports this model. [ABSTRACT FROM AUTHOR]

This study examines the effects of multinationals and economic institutions on the economic growth of cities in China. Consistent with previous findings, the empirical results suggest that property rights institutions are significantly more important than contracting institutions in promoting economic growth. The direct effect of multinationals on economic growth is generally insignificant statistically. However, a statistically significant and robust interaction effect exists between property rights institutions and multinationals on economic growth, whereas no such effect is observed between contracting institutions and multinationals. The results are attributable to the fact that multinationals can rely on reputation or personal connections to enforce contracts when contracting institutions are weak. However, it is difficult for multinationals to operate when the state expropriates their profits (i.e. property rights institutions are weak). [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to examine the relations between supply chain strategies and impact on terms and conditions of employment of multinational corporations operating in China. Design/methodology/approach – Case study analysis of two production plants owned by leading multinational corporations, and a number of their suppliers (five in total), was undertaken. Semi-structured interviews with managers (personnel, production and supply chain) and workers in each case study were conducted both to gain information and to triangulate evidence. Visits were made to each of the factories and to the environment in which the workers lived and worked. Findings – There is no uniform or single deterministic relationship between supply chains and labour standards. Supply chain strategies, ownership form and industry are all determinants of the relationship. However, size, as measured in terms of number of employees, does not seem a significant factor in power relations. There is also a balance between cost squeeze and other factors (the potential of cost saving, desire for predictability) in relations between existing firms in a supply chain. Originality/value – Analysis of management practices and its relationship with employment issues in supply chain theory is still not well integrated. Part of the reason lies in the concerns of each discipline. By treating supply chain concerns as a menu of issues rather than an integrative theory, through case study analysis, a nuanced and explanatory detail can be given. These will need later repetition in quantitative or qualitative forms of research. Ontologically, the paper attempts to draw together the critical research and business school approaches to strategic management concerns. While both approaches provide a wealth of substantive evidence, there is a need to read from both perspectives to be able to catch the nature of work organisation and the management practices that inform them in China. [ABSTRACT FROM AUTHOR]

Purpose – This article aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.Design/methodology/approach – The briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.Findings – Creating the biggest steel company in the world is quite an achievement. Creating the conditions to ensure that the businesses within it restructure and merge into one coherent enterprise is a daunting task. When Arcelor and Mittal Steel merged in 2006, the new ArcelorMittal found itself with a genuinely global reach, with large workforces located in mature markets like the USA and Western Europe, as well as emerging markets, such as Brazil, China, Kazakhstan and Ukraine.Practical implications – The article provides strategic insights and practical thinking that have influenced some of the world's leading organizations.Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. [ABSTRACT FROM AUTHOR]

This article attempts to build a bridge between contemporary studies of global firms from emerging economies and existing theories in comparative political economy. It argues that given the primacy of the state as an economic actor in developing countries, the variety of capitalism literature could provide a theoretical foundation for firm-level analyses of emerging market multinationals. For example, the authors suggest that China and India may be moving towards a 'hybrid market economy'. They also offer a typology of Indian and Chinese corporates to demonstrate an empirical approach to analysing domestic business-government relationships and the ways in which these firms are shaped by the peculiarities of their respective institutional setting. Finally, they identify some of the likely pitfalls of doing cross-national comparisons of emerging market multinationals, particularly with respect to the reliability of corporate data. [ABSTRACT FROM AUTHOR]

Extensive research has been undertaken on the transfer of organizational practices by multinational firms (e.g. Morgan, Kristensen and Whitley 2001; Ferner, Quintanilla, and Sanchez-Runde 2006). However, little investigation has assessed the role that time plays in this process. The commonplace theoretical assumption is that as their overseas subsidiaries become more embedded in the local environment they increasingly take on the practices that prevail locally (Rosenzweig and Nohria 1994; Farley, Hoenig and Yang 2004). There have, though, been few longitudinal studies that would allow the veracity of this assumption or its implications to be assessed; most studies provide one-off, synchronic 'snapshots' of organizations. Drawing upon research conducted at a UK-owned retail firm in China between 1999 and 2005, this paper provides a diachronic perspective that can trace emergent trends. Data are derived from mixed methods: 140 interviews with expatriate managers and local staff from all levels of the hierarchy, a three month period of ethnographic research and a total of 305 survey questionnaires. Comparison between findings from the more recent research and those based upon the earlier research suggests that time does play a role in affecting transplanted organizational practices. We report that in some respects the organizational practices of the firm in question increasingly took on more of the 'colour' of those that prevailed in the host environment. However, convergence with local practices was far from total, some practices bear increasing resemblance to the firm's parent country operation. We also caution that it is difficult to disentangle the isomorphic influence of the passage of time from factors such as the rapid withdrawal of expatriate managers from the operational level and the impact of the firm's rapid expansion across China. Moreover, we suggest that the local-global dichotomy, upon which much of the convergence-divergence debate rests, is perhaps increasingly problematic. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

The notion of "Third World Multinationals" has always been, at least, slightly misleading, and has now also become obsolete, taking into account the dismantlement of most of the ideological divides between different political and economic blocks since the early 1990s, and the new rules of the games imposed by globalization. Furthermore, new multinationals emerging from China, and also from the former Soviet republics, are demanding a new and more flexible taxonomy. The present paper re-defines "Multinationals from Developing Countries" (MEDCs) and it reviews first, the current literature on multinationals, looking at the key factors which may explain the internationalization process of enterprises coming from outside the traditional, developed, and industrialised world, and also whether they may enjoy specific sources of comparative advantages, different from those ascribed to the old, established multinationals. A statistical appendix provides a brief but comprehensive survey of the current status of MEDCs, pointing out that, at the end of the day, there are roughly only four such enterprises in the usual rankings of the first one hundred multinational corporations, worldwide, and that the prospects of a forthcoming, and enhanced upgrading in the global corporate structure are heavily geared towards Asia. The data would also seem to support the argument that sheer "scale", as such, of the enterprises does not explain a greater or lower degree of "transnationalization," a conclusion which, added to that of the greater flexibility provided by the new information technologies, could be goods news for small- and medium-sized enterprises coming from the developing world. doi:10.1300/J482v11n04_05 [ABSTRACT FROM PUBLISHER]

We argue in this paper that in the WTO regime the role of efficiency seeking FDI and location advantages are likely to emerge more important. A primary survey was conducted and the Japanese MNEs were asked to assess location advantages for India in relation to China and the East Asian countries. The results support the earlier studies on the importance of infrastructure development in attracting FDI hut do not back the emphasis on controls and administrative complexities. [ABSTRACT FROM AUTHOR]

In this paper we explore the impact of organisational mechanisms on inter-unit knowledge flows in multinational corporations (MNCs). A comprehensive model, based on agency theory and socialisation theory, is tested on a sample of 134 Finnish and Chinese MNC subsidiaries. Our findings indicate that MNCs can influence inter-unit knowledge transfer by specifying the objectives of the subsidiary and by utilising corporate socialisation mechanisms. However, we found no support for the hypothesised impact of management compensation systems and the use of expatriate managers on the extent of knowledge transfers from foreign subsidiaries to other parts of the MNC. [ABSTRACT FROM AUTHOR]

In 2002, China surpassed the USA to become the world's largest foreign investment destination. Many Chinese cities, especially those along the coast, have become hot spots for Foreign Direct Investment (FDI). The urban development of these Chinese cities, as in most market societies, has increasingly depended upon their global connections. However, it is unclear to what degree the governments of these cities are able to influence the decisions of foreign investors. This paper uses Shenzhen city as a case study to examine how multi-nationals’ spatial and sectoral patterns have been changed over time and to what degree the local government has been able to influence multinationals’ locational and sectoral selection. It is concluded that Shenzhen has managed to create a strategy to maximise its ability to benefit from global economic forces and to attract multinational manufacturers in the locality, and particularly in increasing its target sector of technology-intensive industry. This case study demonstrates the importance of a strong city government in managing growth and reacting decisively to globalisation. [ABSTRACT FROM AUTHOR]

This study examines expatriate staffing in foreign wholly-owned subsidiaries and joint ventures of Japanese firms located in the People's Republic of China and the United States. Expatriates are conceptualized as performing two primary functions. The first is a control function in which the expatriate works to align the operations of the subsidiary with that of the Japanese parent. The second function is a knowledge role. In this role, either the expatriate acts to transfer the Japanese parent's knowledge to the subsidiary or the expatriate is an agent for the acquisition of host-country knowledge. We tested for these two functions using subsidiary-level data on Japanese firms' operations in China and the US. Our results indicate that the control function was more prominent in joint ventures in China than in the US. The results also indicate that expatriates played a more significant knowledge-transfer function role in technology and marketing-intensive industries in China than in the US. A lack of MNC experience in China was found to be associated with limited use of expatriates. Finally, expatriate employment was negatively related to the number of subsidiaries of the parent company worldwide. [ABSTRACT FROM AUTHOR]

As one of the big emerging markets, China's enormous population and rapid increase in consumer spending have attracted many multinational corporations (MNCs). Meanwhile, the misconception of China as a homogeneous market often leads to difficulties in assessing market demand and enacting effective strategies. Examines the diversity among Chinese consumers across seven regional markets. Data from a national survey suggest that consumers from various regions are significantly different from one another in terms of purchasing power, attitudes, lifestyles, media use, and consumption patterns. MNCs need to take a cautionary approach when expanding into the inland regions, and must adapt lo the local market conditions and devise sustainable strategies. [ABSTRACT FROM AUTHOR]

REMINDER: The deadline for the 2019 Kyoko Selden Memorial Translation Prize competition is soon approaching. Translations should be submitted by the deadline of August 1, 2019. The 2018 prizes were awarded to Dawn Lawson for Nakajima Shōen's A Famous Flower in Mountain Seclusion (Sankan no meika, 1889) and to Max Zimmerman for the short story, "An Artificial Heart" (Jinkō Shinzō, 1936) by Kosakai Fuboku. For further information please see the Cornell Asian Studies Department website. Since 2000, the driving force behind China's booming food industries has shifted from state planning to consumer demand. This shift has powered the growing importance of food branding, as consumers rely increasingly on known brands in the search for safe and wholesome food. While earlier eras of food branding strongly favored multinationals like Coca Cola and Nestlé, Chinese brands appear to be gradually regaining the trust of consumers, who increasingly rely on online ecosystems that seamlessly combine e-commerce, e-payment and home delivery into a self-contained purchasing environment. The 2019 Food and Beverage Innovation Forum suggests that future trends may include increasing reliance on data informatics, a domestic shift to focus on free spending GenZ consumers, and branded export of China's unique strength in logistics. [ABSTRACT FROM AUTHOR]

An abstract of the article "The evolution of China's IPR system and its impact on the patenting behaviours and strategies of multinationals in China," by Zheng Liang and Lan Xue is presented.