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Index
Cover
Title
Copyright
Contents
List of Contributors
About the Editors
About the Authors
Forword
Preface
Introduction
Part I: The Prominence of Socio-Political Actors in Emerging Markets
1. The Three Pillars: Business, State and Society: MNCs in Emerging Markets
Abstract
1.1. Doing Business in Emerging Markets
1.2. Understanding the Political Environment
1.3. Managing Interaction with Social Actors
References
2. Creating Socially Responsible Value Chains: Role of Companies, Governments and NGOs
Abstract
2.1. Introduction
2.1.1. Methodology
2.2. The Extended Enterprise
2.2.1. Extended Value Chain
2.2.2. The Socially Responsible Value Chain
2.2.2.1. Relationships Imply Expectations
2.2.2.2. Stakeholder Relationships Are Complex
2.3. Cases
2.3.1. Case 1. Apple’s Supplier Problems
2.3.2. Case 2. Nike’s Supply-Chain Problem2
2.3.3. Case 3. Nestle’s Marketing Problem
2.4. The Principle of Public Responsibility
2.5. Public Policy: Institutional Systems
2.6. Managing Socio-Political Relationships
2.7. Government’s Role
2.7.1. Externalities, Society and Governments
2.7.2. The Pendulum of Governments’ Role
2.8. Role of NGOs
2.8.1. Detecting Problems and Providing Information
2.8.2. Advocacy to Secure Change
2.8.3. Fill Infrastructural and Institutional Voids
2.8.4. Provide Leadership for Change
2.9. Role of Inter-Governmental Organizations
2.10. Managerial Perspective
2.10.1. Industry Structure and Company’s Position
2.10.2. Arguments for Inaction
2.10.3. The Case for Managerial Action
2.11. Recommendations
2.11.1. Extend Span of Vision
2.11.2. Seek External Feedback
2.11.3. Bridge Institutional Distance
2.11.4. Demystify NGOs
2.11.5. Partner with NGOs
2.11.6. Create Codes for Conditions in the Extended Value Chain
2.11.7. Design Organization and Systems to Enforce Compliance
2.11.8. Create Independent External Monitors
2.11.9. Create Coalitions with Governments, NGOs and inter-Governmental Agencies
2.12. Conclusion
Notes
References
Appendix 1: Extracts from Free Labor Association’s Workplace Code of Conduct
3. Activating Stakeholders: An Approach by MNCs in Emerging Markets
Abstract
3.1. Theoretical Background
3.2. Focus on MNCs’ Entry into Emerging Markets
3.2.1. Method
3.3. Empirical Findings
3.3.1. Political Actors
3.3.2. Social Actors
3.3.3. Business Actors
3.3.3.1. Suppliers
3.3.3.2. Employees
3.3.3.3. Customers
3.3.3.4. Competitors
3.4. Discussion and Contributions
3.4.1. Choosing Stakeholders in the Process of Market Entry
3.4.2. Stakeholder Roles and Managerial Actions in the Process of Market Entry
Notes
References
4. Political Strategies as a Response to Public and Private Stakeholder Pressures
Abstract
4.1. Introduction
4.2. Political Strategies
4.3. Hypotheses Development
4.4. Methods
4.1.1. Measures
4.1.2. Subsidiary Political Strategies
4.1.3. External Stakeholder Pressures
4.1.4. Controls
4.5. Analysis and Results
4.6. Discussion
4.7. Implications and Limitations
Appendix. : Operationalisations of Main Variables of this Study
Notes
References
5. Market Communication as Socio-Political Activity in Emerging Markets
Abstract
5.1. Introduction
5.2. Socio-Political Activity in Emerging Markets as a Marketing Activity
5.3. Emerging Markets as the Arena for Socio-Political Marketing Activity
5.4. Market Communication of Socio-Political Activity in Emerging Markets
5.5. Communication as Socio-Political Activity in Emerging Markets
5.6. Communication and Language as Social Practice
5.7. Communication and Language as Performative
5.8. Communication and Language as Linking Agency and Structure
5.9. Conclusion
Acknowledgements
References
6. Between Neighbours’ Heat and Colonial Ties’ Comfort: Does Distance Really Matter?
Abstract
6.1. Introduction
6.2. Entry Mode: Internal and External Determinants
6.2.1. Inside the Firm: Capabilities
6.2.2. Differences at Country Level: Stimulus for Firms’ Perceptions
6.2.2.1. Psychic Distance
6.2.2.2. Host Country Risk
6.2.3. Internationalisation in Emerging Markets: The Role of Colonial Ties
6.3. Empirical Setting and Statistical Model
6.3.1. Statistical Model
6.3.2. Dependent Variable
6.3.3. Independent Variables
6.4. Results
6.5. Discussion
6.5.1. The Case of Portugal and Its Former Colonies
6.6. Conclusions
Notes
References
Part II: Interactions Between Politics and Business
7. Managing Political Actors Through Network Partners: Market-Driving Multinationals in Emerging Markets
Abstract
7.1. Introduction
7.2. Theoretical Background
7.3. Research Method
7.4. Case Study 1: Axis Communication
7.4.1. Establishing Partnerships Globally to Drive Local Markets
7.4.2. Proactive and Reactive Collaborations in India
7.4.3. Being Innovative and Small Especially Calls for Collaborations
7.5. Case Study 2: Tetra Pak
7.5.1. Global Collaborations to Drive Opinions and Build Trust
7.5.2. India: A Long Term Network Approach to Influence Cultural Factors
7.5.3. Coping with Regulations and Industry Standards Through Partnerships
7.6. Discussion and Conclusions
References
8. The Importance of Nurturing Political Connections for Emerging Multinationals: Evidence from Brazil
Abstract
8.1. Introduction
8.2. EMNE: The Home Government Perspective
8.3. Empirical Investigation
8.3.1. Research Setting
8.3.2. Sample
8.3.3. Methods
8.3.4. Variables
8.4. Results
8.5. Discussion and Conclusions
References
9. Internationalization of Swedish Banks in Russia and the Impact of Political Environment
Abstract
9.1. Introduction
9.2. Analytical Framework
9.3. Method
9.4. The Case of Swedish Banks Expansion Into the Russian Market
9.4.1. A Difficult Market to Establish in [1990–1997]
9.4.2. Rouble Crisis and Recovery Mode [1998–2002]
9.4.3. Renaissance [2003–2007]
9.4.4. A Severe Financial Crisis [2008–]
9.5. Analysis
9.6. Conclusion
Notes
References
10. National Governments and Power Relationships in Multinational Companies: The Case of the EADS Group
Abstract
10.1. Introduction
10.2. The Distribution of Power Following the Creation of EADS: A Balanced Relationship?
10.3. The EADS Group in 2005: Heading Towards an Unbalanced Relationship?
10.4. National Governments and Power Relationships in the EADS Group
10.4. Conclusions
References
11. Business and Political Interactions in Emerging Markets: Experiences from China, South Africa and Turkey
Abstract
11.1. Introduction
11.2. The Internationalisation Process Model
11.2.1. Business – Political Interaction
11.3. Methodological Considerations
11.4. China as an Emerging Market
11.4.1. Sandvik in China
11.4.1.1. Sandvik’s Political Environment
11.5. South Africa as an Emerging Market
11.5.1. Ericsson in South Africa
11.5.1.1. Ericsson’s Political Environment
11.5.1.2. Other Important Non-Business Relationships
11.6. Turkey as an Emerging Market
11.6.1. ABB in Turkey
11.6.1.1. ABB’s Political Environment
11.6.1.2. Other Important Non-Business Relationships
11.6.1.3. ABB and Relationships with Turkish Business Elites
11.7. Discussion
11.8. Conclusion
References
Part III: The Socio-Political Environment and the Firm
12. The Role of Corporate Social Responsibility in Foreign Market Entry Process — The Case of Korean MNCs in the Chinese Electronics Industry
Abstract
12.1. Introduction
12.2. Theoretical View
12.3. Research Methodology
12.4. The Case of Samsung Electronics China
12.5. The Process of Market Entry and Expansion
12.6. Corporate Social Responsibility (CSR)
12.6.1. MNCs and CSR in China
12.6.2. Samsung’s CSR
12.6.2.1. Education
12.6.2.2. Support for the Disadvantaged
12.6.2.3. Support for Farming Communities
12.6.2.4. Environmental Issues
12.6.3. Some Characteristics
12.7. Discussion of Empirical Finding
12.8. Conclusions
Notes
References
13. Co-operating to Tackle Environmental Issues in Emerging Markets: The Case of a Partnership Between a Finnish NGO and a Russian Water Utility
Abstract
13.1. Introduction
13.2. Conceptual Background
13.3. The Case Study
13.3.1. A Comment on Methods
13.3.2. Background: The Environmental Problem to be Tackled
13.3.3. Co-operation Partners: JNF (Finland) and Vodokanal (Russia)
13.3.4. Co-operation Project
13.3.5. Phases of Co-operation
13.3.5.1. Building up International Co-operation
13.3.5.2. Initial Contacts
13.3.5.3. Advancements and Achievements
13.3.5.4. Moving Forward with Other Projects
13.4. Analysis of the Embedded Co-operation Partnership
13.4.1. Inducing the Necessary Cultural-Cognitive Change
13.4.2. Partnership and Key Individuals
13.4.3. A Partnership Embedded in Networks
13.4.4. Success Factors in Co-operation
13.5. Conclusions
References
14. Innovation Through Business and NGO Co-operation: The Case of Digital Inclusion in the Amazon
Abstract
14.1. Introduction
14.2. Literature Review
14.2.1. Theoretical Basis
14.3. Research Design
14.3.1. Selection of Case
14.3.2. Data Collection
14.4. The Amazon Case
14.4.1. Taking the Initiative
14.4.2. Finding the Right Social Partner
14.4.3. Installing the Equipment
14.4.4. Observing the Impact of Better Connectivity
14.4.5. Reaching Further
14.4.6. Products Tested
14.4.7. Difficulties in NGO Co-Operations
14.5. Analysis
14.5.1. Trust
14.5.2. Commitment
14.5.3. Cultural Compatibility
14.6. Concluding Remarks
Notes
References
15. Tracking the Aftermath of a Corporate Scandal from a Network Perspective: The Case of Roche in Turkey
Abstract
15.1. Introduction
15.2. Theoretical Framework
15.3. Empirical Study
15.3.1. The Background Information
15.3.2. Public Procurement, Pricing and Distribution of Pharmaceuticals in Turkey
15.4. Methodology
15.4.1. Roche Turkey Scandal of 2003
15.4.2. The Process of Scandal
15.4.3. The Whistle-blower Speaks Out
15.4.4. The Aftermath of Roche Turkey Scandal
15.4.5. Reactions to the Roche Turkey Scandal
15.4.6. Government and Governmental Bodies Reactions
15.4.7. Turkish Competition Authority’s Reactions
15.4.8. Professional Organizations’ Reactions
15.4.9. Association of Research-Based Pharmaceutical Companies’ Reactions
15.4.10. Effect of Roche Turkey’s Scandal on Suppliers
15.4.11. Roche Turkey’s Reactions
15.5. Analysis
15.6. Conclusion
Notes
References
16. Intersection of Roles Between States and Multinationals in Emerging Markets
Abstract
16.1. Introduction
16.2. Definition of Terms: Commercial Diplomacy, Economic Diplomacy and ‘Business Diplomacy’
16.3. Links Between Diplomacy and Trade
16.4. The Intersection Between the Roles of the State and of Multinationals
16.4.1. Changes in Classical Diplomacy
16.5. Multinationals and Business Diplomacy in Emerging Countries
16.5.1. Representation
16.5.2. Gathering Information
16.5.3. Negotiation
16.5.4. Companies’ Negotiating Power vis-à-vis Governments
16.5.5. Negotiations Between Companies from Different Countries
16.5.6. Multinationals and Actors External to Business
16.6. Conclusion
16.7. Perspectives
Notes
References
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