critical perspectives on international business

Pearce, Robert D.; Tang, Yuxuan

2021 critical perspectives on international business

doi: 10.1108/cpoib-10-2019-0087

The purpose of this paper is to evaluate multinational enterprises’ (MNEs) performance and impact in contexts beyond their own internal objectives.Design/methodology/approachBased on an “eclectic” paradigm and the range of motivations, the framework is designed around three layers of evaluation: “efficiency” as static optimisation, “growth and development” as the dynamics of change on a purely economic view; political/economic sphere in terms of the outcomes of “distribution”, and “sovereignty” on the more purely political concern of how MNEs may undermine countries’ policy independence.FindingsMNE and national economies have to use current sources of competitiveness efficiently while addressing the necessity to reinforce and refocus them through time. Within these broad agendas, significant interactions and outcomes reflect a range of contingencies conditioned by both MNE objectives and hosts’ competitive status.Originality/valueThe paper concerns economics and MNE role in globalisation. The paper defines a framework of four generic evaluative issues of MNE performance, which subsume a wider range of important but more niche concerns.

Narula, Rajneesh; van der Straaten, Khadija

2021 critical perspectives on international business

doi: 10.1108/cpoib-10-2019-0080

Whether by direct or indirect action (or by inaction), multinational enterprises (MNEs) can have both a positive and a negative effect on within-country social and economic inequality. This paper aims to comment on this multifaceted relationship between MNEs and within-country inequality.Design/methodology/approachGiven the absence of either robust theory or evidence in the neglected realm of MNEs and within-countries inequalities, this paper offers some general observations, highlights some of the key issues and illustrates possible avenues for future research studies.FindingsThe capacity of MNEs to upgrade economic activity in the host country is a key policy objective. MNEs have arguably contributed to reducing income inequalities between countries. However, the limited evidence available suggests that the gains of FDI are rarely evenly distributed within recipient countries, and many of the underlying dynamics need further investigation.Social implicationsThe authors broaden the engagement with inequality beyond income levels, as this is just one aspect of inequality that shapes or impedes human development. They believe it is necessary – for both MNEs and policymakers – to have a more nuanced understanding of how, and under what circumstances, the presence of MNEs affects inequality in host economies.Originality/valueThis paper relates the large literature on inequality (going beyond the mainstream focus on income inequality) to the mainstream understanding of MNE-assisted development.

Márquez-Ramos, Laura

2021 critical perspectives on international business

doi: 10.1108/cpoib-12-2017-0102

The purpose of this paper is to contribute to a better understanding of whether emerging economies benefit or suffer more because of value-chain activities than advanced economies do. Specifically, it focuses on the consequences in terms of individual wages.Design/methodology/approachPanel data techniques are used to estimate an expanded Mincerian wage equation over the period 1995-2007. The analysis is performed using micro-level data for two countries that represent two different experiences of value-chain activities in Central Europe: Germany and Slovenia.FindingsIncreasing value-chain activities reduce wages for low-skilled workers in high-skill-intensive industries in Germany, hence driving up the skill wage premium. Conversely, evidence is found of a decreasing skill wage premium as a consequence of increasing value-chain activities in Slovenia. Finally, increasing value-chain activities reduces the wages of workers in low-skill-intensive industries in both Germany and Slovenia.Originality/valueThis paper analyses the effect of value-chain activities on wages. It is the first empirical assessment that brings individual wage data directly into the picture for an international comparison focussed on two Central European countries that represent “two faces” of value chains. This paper shows that the effects of increasing value-chain activities on wages differ by country, by industry and by individual skills.

Rygh, Asmund

2021 critical perspectives on international business

doi: 10.1108/cpoib-09-2019-0068

This paper contributes to laying a foundation for a research agenda in international business (IB) on multinational enterprises (MNEs) and economic inequality, through an extensive literature review and development of a conceptual framework.Design/methodology/approachThe author conduct a systematic review of studies on economic inequality in IB literature, complemented by a broader selective review of studies in general management, economics, political science, sociology and other disciplines.FindingsThe review confirms that economic inequality has received little attention in IB research. Most contributions are recent conceptual studies, while empirical studies are scarce. Studies in economics and other disciplines provide further insights on the effects of MNEs on inequality, although specific findings are somewhat mixed.Research limitations/implicationsThe author develop a simple framework outlining channels of effects from MNEs activities on different forms of inequality, discuss challenges and opportunities for IB in addressing this topic and identify some avenues for future IB research on economic inequality.Originality/valueThis paper is the first comprehensive review of literature in IB on economic inequality. It also presents relevant literature on MNEs and economic inequality from various other disciplines and outlines the contributions that the IB discipline can make to the study of this topic.

Hermes, Jan; Lehto, Irene

2021 critical perspectives on international business

doi: 10.1108/cpoib-12-2017-0095

This study aims to understand how the coevolution of multinational enterprises (MNEs) and emerging economy institutions affects social and economic (in)equality in an ambiguous, emerging economy context from a political actor perspective.Design/methodology/approachQualitative in nature, the study builds on conversations with 20 political actors involved in the peacebuilding process in Myanmar/Burma. It analyzes their perceptions of interaction of MNEs and host economy institutions from a social constructionist viewpoint.FindingsThe study identifies four coevolution patterns which portray the evolving interaction between MNE activities and different elements of their host institutional environment as well as their consequences for social and economic (in)equality.Originality/valueThis study contributes to critical international business research on emerging economies by emphasizing the different and partly conflicting host institutions of various stakeholder groups involved in the coevolution of MNEs and host institutional environments. The more nuanced conceptualization of the complex institutional environment enables the analysis of inequality as a direct and indirect outcome of MNE–institution interaction. Thus, the study connects to the business and human rights discussion and provides insight into the consequences of MNEs’ adoption of social and environment standards.

Paludi, Mariana I.; Barragan, Salvador; Mills, Albert

2021 critical perspectives on international business

doi: 10.1108/cpoib-08-2018-0071

The purpose of this study is to add to the existing research on critical perspectives on diversity management (DM). Specifically, this study examines the narratives of women chief executive officers (CEOs) from different countries of origin to understand how they enact the DM discourse by drawing on their past and present experiences at US multinational corporations (MNCs) located in Mexico.Design/methodology/approachThis study, based on six open-ended interviews with local and expatriate women CEOs who work in MNCs situated in Mexico, used a sensemaking approach to analyze their narratives. The theoretical foundation of the study is based on decolonial feminist theory, which is used to analyze the hierarchical binary between Anglo-Saxon/European woman and the Mexican/Latin American woman with respect to the discourse of DM.FindingsThis study found that the dominant discourse used by women CEOs, expats and nationals was a business case for diversity. Female CEOs represent MNCs in favorable terms, compared to those of local companies, despite the nuances in the antagonistic representations in their narratives. This study also found that the women CEOs’ narratives perpetuated a discourse of “otherness” that created a hierarchy between Anglo-Saxons (US/MNCs’ culture) and Latin Americans (Mexican/local companies’ culture).Originality/valueThis study contributes to critical studies on DM by analyzing diverse forms of power involving gender, race/ethnicity and organizational hierarchy. The use of decolonial feminist theory to examine MNCs is a novel approach to understanding women’s identities and the power differences between local/foreign contexts and global/local businesses. This study also discusses the implications of its findings for women in business careers and concludes with a call for more research within the global South (Latin America).