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Managing acquired subsidiaries can be daunting. Parent and affiliate executives strive to co-create value, but fixed mindsets around subsidiary autonomy can result in diverging interests and outcomes. Through a longitudinal study of Audi’s post-acquisition integration of supercar manufacturer Lamborghini, this article provides guidance on how to manage the level of acquired subsidiary autonomy as a strategic dial that can be dynamically adjusted over time for mutual benefit. This dynamic approach to autonomy rests on three specific managerial levers—appraisal respect, organizational identity, and resource orchestration. These can enable the renewal of competitive capabilities and sustain post-acquisition success. [ABSTRACT FROM AUTHOR]

We examine bankruptcy within business groups. Groups have incentives to support financially distressed subsidiaries, as the bankruptcy of a subsidiary may impose severe costs on the group as a whole. This is in part because, in several countries, bankruptcy courts often "pierce the corporate veil" and hold groups liable for their distressed subsidiaries' obligations as if they were their own. Using a large cross-country sample of group-affiliated firms, we show that, by reallocating resources within the corporate structure, business groups actively manage intra-group credit risk to prevent costly within-group insolvencies. Moreover, we document that recent regulatory changes in the approval and disclosure of related party transactions are costly for business groups in that they constrain their ability to shield their subsidiaries from credit-risk shocks. Our study informs the current regulatory debate on related party transactions by highlighting an important cost of anti-self-dealing regulation. [ABSTRACT FROM AUTHOR]

We examine how local air quality shapes firm innovation. Using a panel dataset of Chinese listed firms from 2014 to 2017, we find significant decreases in R&D expenditure and patents for firms located in cities with severe air pollution. Moreover, we find that firms tend to mitigate the adverse effects of air pollution by shifting innovation activities to their subsidiaries located in areas with better air quality. Cross-sectional analyses reveal that the decreases are more pronounced for non-SOEs, financially constrained firms and firms in high-tech industries. We provide causal evidence using the instrumental variable method, a discontinuity regression design, and propensity score matching. Overall, our study highlights that air pollution is an important local environmental factor that affects firm innovation. [ABSTRACT FROM AUTHOR]

This study analyses how the mutual imbrication of organizational and postcolonial power along with the micro-embedding of actors' shape and structure power struggles in multinational corporations. Drawing on the case of news agency Reuters' internationalization and centralization approach at its Indian subsidiaries in Mumbai and Bangalore, our research explores how subsidiaries mobilize resources to pursue their interests in a landscape shaped by clashing professional institutional logics and organizational control systems reflected in quality control and performance assessment. Our findings shows that the power struggle and (professional) identity position of both subsidiary staff differs as they face different organizational, institutional and (neo)colonial pressures and are othered in different ways. We argue that as a site of "value production," both subsidiaries are qualified and disadvantaged in distinct ways. Our study emphasizes the importance of understanding diverse colonial experiences and the mainstreaming of postcolonial insights in the analysis of power in MNCs. [ABSTRACT FROM AUTHOR]

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How can we make sense of the range of organizational dynamics that emerge when managers of multi-national enterprises (MNEs) seek to serve their interests as they perceive multiple demands in relation to corporate social responsibility (CSR)? In this article, I conceptualize this situation as a case of CSR institutional plurality. Drawing from the literature on MNE micro-politics, which I connect to the CSR literature, I analyze qualitative data gathered from five subsidiaries of a UK MNE to which their HQ transferred CSR reporting: a global norm with a typical explicit CSR mode. My analysis reveals that subsidiary managers responded to CSR institutional plurality by developing aligned or contested versions of the global CSR norm, that were then promoted through the deployment of discursive and symbolic tactics. I develop a grounded model that improves understanding of three power capabilities of subsidiary actors, that is, their socialization to explicit CSR norms, the exercise of employee voice and their political capital that can be deployed to support or curb the advancement of the managerial tactics. In doing so, I reveal the complex pathways through which lower-status subsidiary actors can take part in the reconfiguration of a global CSR norm. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to understand the heterogeneity of corporate social responsibility (CSR) approaches across subsidiaries of the same multinational corporations (MNCs) and determine the co-evolutionary dynamics that enhance the global cohesiveness of MNCs' CSR strategies and performance. The study draws on co-evolutionary theory and adopts an explanatory research design based on embedded multiple case study methodology. Semi-structured interviews with top management and employees responsible for CSR or related areas were conducted, and secondary data collection was done for triangulation and validation. The findings suggest that MNCs experience heterogeneity in their CSR, particularly in the implementation approaches, philanthropic and environmental CSR dimensions, and that MNCs with significant heterogeneity at the strategic level have less cohesive strategic CSR practices. The study also found that MNCs that encourage and facilitate active collaboration between subsidiaries have more cohesive and strategic CSR, and each MNC's CSR is driven by different co-evolutionary dynamics. The study contributes to the expansion of co-evolutionary theory to the study of CSR and offers a dynamic CSR co-evolution model explaining MNC CSR heterogeneity in real-world situations, along with potential levers to achieve more globally cohesive strategic CSR.

Among the many promises made by politicians to their constituents, job creation is universal. Do firms strategically use job creation to exert influence? We take this question to the universe of firms in the United States between 1997 and 2018, linking each subsidiary to a congressional district. We find that firms open subsidiaries in more competitive districts, suggesting that firms employ politicians' constituents as a political strategy to build ties with vulnerable legislators. These patterns are also consistent with electorally insecure politicians exerting more effort to attract firms. Unlike other tools of political influence available to a firm, such as campaign contributions and lobbying, job creation is constrained by geography and time. We show that these patterns exist only for firms in geographically flexible industries, that local job creation increases a politician's electoral survival, and that subsidiary investments are correlated with longer tenures on valuable congressional committees. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of corporate governance quality and ownership structure on tunnelling behaviour in Indonesia, specifically examining the moderating effect of the number of subsidiaries. The study utilized quantitative research methods and secondary data from the Indonesia Stock Exchange, company websites, and relevant journals. The sample consisted of 474 observations from listed companies on the IDX, excluding non-financial firms, covering the period from 2016 to 2019. Statistical analyses, including Pearson Correlation, OLS Regression, and Moderated Regression, were conducted using STATA 14.2 software. The results indicate that managerial ownership, government ownership, and corporate governance quality positively influence tunnelling behaviour, while domestic ownership has a negative impact. Foreign ownership, on the other hand, does not significantly affect tunnelling behaviour. Notably, the number of subsidiaries strengthens the relationship between corporate governance quality and tunnelling behaviour.

Studies of the determinants of cross-border bank claims are based on the economic situations of the lending and borrowing countries--the traditional push/pull factors--but fail to take into account the situation of the international lending banks and the presence of their subsidiaries in emerging countries. They also fail to explain the huge decrease in cross-border bank flows after the 2008 global financial crisis. In this paper, we analyse the determinants of cross-border bank claims on a panel of 28 emerging countries and explicitly integrate banking determinants. Thus, we account for the financial situation of international lender banks and the existence of foreign locations in emerging countries as a potential pull stabilising factor. We show that the presence of foreign banks in emerging countries is clearly a factor of attraction for cross-border bank claims. It remains when we explicitly take into account the 2008 crisis but to a lower extent and in favour of interbank loans. This may be proof of support from the international parent banks to their affiliates. Last, the financial situation of international banks, notably their liquidity and ability to respect prudential rules, also plays a role in their financing strategies in emerging countries. [ABSTRACT FROM AUTHOR]

Purpose: Transactions carried out in MNEs among parent companies and subsidiaries affect the achievement of the strategic and operational objectives of MNEs, their financial results, taxes paid and intra-group relations. The aim of the paper is to justify the need to extend the areas of strategic management in MNEs to include the area of tax, in particular related to the valuation of transactions between entities within a group, and the need to meet the obligations related to transfer pricing. The practical aim of the article is to propose an original transfer pricing policy model for MNEs, which may be adopted to increase the transparency of settlements and have a positive impact on operational and strategic effectiveness within groups. Design/methodology/approach: The paper is based on qualitative research. Content analysis of legal provisions and prior literature was used for the collection of relevant data for building a transfer pricing policy model. Findings: A comprehensive and consistently implemented transfer pricing policy may help in optimizing the tax structure of MNEs, as well as minimizing the risk associated with changes in tax provisions. As an instrument influencing operational relations and performance management in MNEs, it can be a significant element of the strategic management of groups. Practical implications: The research impact upon MNEs is the possibility to apply and adopt the transfer pricing policy model proposed in the paper in order to support performance management within a group. Social implications: The way multinational entities conduct their business is often perceived negatively by society due to issues of tax evasion. The implementation of a comprehensive transfer pricing policy promotes corporate tax transparency and increases employee tax awareness. Originality/value: The originality of the article stems from a coherent combination of various aspects relating to intra-group transactions into one model, which on the one hand supports the management of subsidiaries, and on the other facilitates compliance with Polish and international legal provisions. The proposed model may be subject to further development. [ABSTRACT FROM AUTHOR]

In recent decades, the largest European worker cooperatives, and those that are the most emblematic in their countries, have been transformed into multinational companies. This article examines workers'‐cooperative multinationality by providing a classifying tool based on the interaction between control rights and return rights held by foreign employees in the subsidiaries of multinational cooperatives. We illustrate our matrix of cooperative multinationality by classifying an internationalized historical cooperative, Up Group (formerly Chèque Déjeuner, SCOP). In the last few decades, the French cooperative Up has become a hybrid multinational player in the employee benefits industry by setting up capitalist subsidiaries both in France and overseas. The case study also reports on Up's innovative attempt to produce a global cooperative or a more democratic multinational enterprise through converting subsidiaries' employees into associates. [ABSTRACT FROM AUTHOR]

Copyright of Industrial Relations / Relations Industrielles is the property of Universite Laval, Department of Industrial Relations and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Studies of the Industrial Geography Commission of the Polish Geographical Society / Prace Komisji Geografii Przemyslu Polskiego Towarzystwa Geograficznego is the property of Press of Pedagogical University of Cracow and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article examines the impact of the staffing of foreign subsidiaries of multinational enterprises (MNEs) on the innovation performance of the parent company and the moderating effect of the institutional distance between the host country and the home country. This paper conducts an empirical analysis on the data of 59 mature Chinese MNEs and their 872 overseas subsidiaries over the past 11 years and obtains some interesting results. The results show that the proportion of host country nationals (HCNs) in overseas subsidiaries has a significant positive impact on the innovation performance of the parent company and that it is not a simple linear relationship but rather an inverted U‐shaped relationship. As HCNs increase, the ability to acquire knowledge is increasing, while the ability to integrate knowledge is decreasing. Thus, multiplicative combinations of latent mechanisms result in an inverted U‐shaped relationship. However, the institutional distance between countries negatively moderates the effect of subsidiary HCN proportions on parent company innovation performance. The findings have important practical implications for the multinational innovation strategies of Chinese MNEs and governments. [ABSTRACT FROM AUTHOR]

Caucasian Anglophones tend to side with the Coyote while Latin Americans, Indians, and Iberians with the Roadrunner. The Roadrunner types claim to dislike being led by Coyote types, and that is probably what they get at subsidiaries, because the heads of subsidiaries are likely to be appointed by Anglophone Coyote‐type bosses. Among the Seligman virtues, Justice and Courage show the greatest cleavage between the choices between characters. Respondents who side with the Roadrunner appreciate more what they see as fairness and leadership in the Roadrunner, while those who side with the Coyote appreciate more its bravery and integrity. Because MBA alumni respondents tend to have relatively homogenous training and goals, their expressed allegiances to either the Coyote or the Roadrunner characters of the Warner Bros. cartoon are likely to express culturally nuanced projections on the characters. Respondents also explained what managerial roles they see fitting for each character. [ABSTRACT FROM AUTHOR]

Copyright of Finance & Business Economies Review is the property of Finance & Business Economies Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: In this paper, the authors contribute with insights on competition and cooperation in multinational enterprises with a focus on challenges related to these governance mechanisms in a knowledge development context. The mechanisms have been widely recognized as important for developing knowledge, but their contradicting nature implies considerable complexity when it comes to governance. The complexity is further increased as a result of the headquarters-subsidiary relationships. The aim of this paper is to contribute with theoretical and empirical insights on these aspects by focusing on the research question: How and why does competition and cooperation in an MNE emerge over time? Design/methodology/approach: A manufacturing MNE with headquarters (HQ) in Sweden is analyzed on both HQ and subsidiary levels. Interviews with 24 managers in Sweden and India have been performed. Findings: The study illustrates that competition and cooperation are integral aspects in HQ-subsidiary relationships. The results show that both competition and cooperation depend on environmental, organizational and object-related conditions and that these conditions influence the dynamics of the interplay. The importance of including a subsidiary perspective and the interdependencies in an MNE setting are emphasized. Originality/value: The authors add to the discussion on the interplay between competition and cooperation as they play an important role for knowledge development in MNEs. The results indicate that they do not take place simultaneously, and therefore, the authors suggest that the dynamic can be better understood by focusing on the interplay and analyze the concepts separately. [ABSTRACT FROM AUTHOR]

Background and purpose: Managing human resource in foreign subsidiaries of Multinational Companies (MNCs) has been a challenging task due to the cultural diversity. High Performance Work System (HPWS) has been adopted by headquarters of MNCs in their subsidiaries as a form of control. The current research aims to explore the adoption and implementation of HPWS in subsidiaries of Japanese MNCs in Vietnam.

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Subsidiaries are at the frontline of value creation in modern multinational enterprises. This research is among the first to apply an asset bundling framework to investigate how foreign‐owned subsidiaries achieve higher performance outcomes via ambidextrous network management, that is, with strong exploitative (intraorganizational) as well as strong explorative (interorganizational) network relationships, in emerging markets. Ambidextrous network management may be supplemented by decision‐making autonomy and top management team national diversity. The framework is tested on a sample of subsidiaries located in both Thailand and Singapore. The analysis revealed several configurations that make subsidiaries with ambidextrous networks become successful. Our findings demonstrate to subsidiary managers that exploitation and exploration are complementary for long‐term success in a subsidiary, but that the relative balance between the two is likely to vary according to the nature of subsidiary context‐specific assets. [ABSTRACT FROM AUTHOR]

The aim of this article is the presentation, according to the Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented, of the elimination of the shareholdings in subsidiaries, the sharing of the subsidiary’s equity, depending on the percentage of the interest, into the part that belongs to the company that consolidates and the part that belongs to the non-controlling interests, the elimination of the shareholdings owned in jointly controlled entities and in associates, as well as the determination of the equated shareholdings and the goodwill.

This study aims to understand the heterogeneity of corporate social responsibility (CSR) approaches across subsidiaries of the same multinational corporations (MNCs) and determine the co-evolutionary dynamics that enhance the global cohesiveness of MNCs' CSR strategies and performance. The study draws on co-evolutionary theory and adopts an explanatory research design based on embedded multiple case study methodology. Semi-structured interviews with top management and employees responsible for CSR or related areas were conducted, and secondary data collection was done for triangulation and validation. The findings suggest that MNCs experience heterogeneity in their CSR, particularly in the implementation approaches, philanthropic and environmental CSR dimensions, and that MNCs with significant heterogeneity at the strategic level have less cohesive strategic CSR practices. The study also found that MNCs that encourage and facilitate active collaboration between subsidiaries have more cohesive and strategic CSR, and each MNC's CSR is driven by different co-evolutionary dynamics. The study contributes to the expansion of co-evolutionary theory to the study of CSR and offers a dynamic CSR co-evolution model explaining MNC CSR heterogeneity in real-world situations, along with potential levers to achieve more globally cohesive strategic CSR. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Accounting Institute / Muhasebe Enstitüsü Dergisi is the property of Journal of Accounting Institute / Muhasebe Enstitusu Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Issues of support and development of entrepreneurship as an integral part of the country's economic policy are considered in all development strategies of the republic and state programs. This article discusses important areas and issues of support and development of entrepreneurship. Each region of Kazakhstan adheres to a set of measures for the development of mass entrepreneurship, including family business. In this regard, the Damu Entrepreneurship Development Fund promotes the quality development of small and medium-sized businesses. The process of forming key tasks in the development of small business is the support of the Atameken National Chamber of Entrepreneurs. The authors analyzed the main directions of support of small business in Kazakhstan from the state, showing the activities of such companies as the Damu Fund and the Atameken Chamber of Entrepreneurs.

This study examines the impact of IFRS 10 adoption on consolidated financial reports. Our evidence suggests that the new standard is associated with firms consolidating fewer subsidiaries and consolidating fewer subsidiaries with non‐majority ownership. The results also indicate that the effects of IFRS 10 adoption are associated with financial reporting incentives. Finally, our results suggest that post‐IFRS 10, the value relevance of equity increased and the value relevance of profit decreased for firms reporting fewer subsidiaries. The findings are of particular interest to accounting standard setters who are currently undertaking their post‐implementation review of the impact of IFRS 10 adoption. [ABSTRACT FROM AUTHOR]

In the knowledge society, multinationals and, more specifically, their subsidiaries acquire great importance as a source of competitiveness for the multinational as a whole. From this perspective, this article has a double objective: (1) to define ambidextrous subsidiary, and (2) to explore if subsidiaries are ambidextrous. A quantitative methodology is used on a sample of 102 Spanish subsidiaries of foreign multinationals from knowledge-intensive sectors. Findings show that the subsidiaries analyzed are highly explorers of knowledge. However, despite the coherence between the roles played and their international competitive strategies, not all subsidiaries turned out to be ambidextrous. Only those with an integrated player role and transnational strategies can be considered as such.

The genus Ceropegia L. of Family Apocynaceae, subfamily Asclepiadoideae comprises 213 accepted taxa distributed in tropical and sub-tropical regions of Africa, India, Australia and neighbouring regions. The taxa are mainly identified on the basis of flower morphology. A study was undertaken to reveal micromorphology of 26 taxa distributed in Western Ghats of India to solve the identity problems. The micromorphology is studied with standard microscopic methods in five replicates of each character and taxa to reveal the parameters, distribution of stomata, stomatal index, stomatal density, epidermal cell wall pattern and stomatal measurements. The data obtained was subjected to ANOVA to find out the experimental mean, standard deviation and standard error. A consensus phylogeny tree is constructed using the PAST on the basis of Jaccard similarity coefficient. Results of study revealed that, micro morphological characters, viz., type of stomata, number and characters of subsidiaries, anticlinal cell wall pattern, and stomatal index are very significant in delimitation of closely allied taxa. Beside ‘paracytic’ stomata, ‘tetracytic’, ‘isotricytic’, & ‘anomocytic’ stomatal types, and amphistomatic distribution are recorded for first time in Ceropegia. The taxa are separated easily from each other using vegetative micromorphology and can be identified even in absence of flowers. An identification key and phylogenetic tree is derived on the basis of vegetative micro-morphology and gross morphological characters.

Multinational companies (MNCs) are geographically widespread production networks that can coordinate operations and activities in more than one country. MNCs transfer innovations, expertise, knowledge and advanced technologies to their host countries through their subsidiaries. Therefore, multinational companies are seen as transfer intermediaries distributing international technologies and innovations. MNCs help to bridge the existing technology gap between developed and developing countries. Due to the multilocation nature of MNCs, the study aims to examine the various drivers that influence Hungarian MNCs’ R&D collaborations, making them choose to collaborate either with local partners or with partners in the countries of their headquarters. The paper reports on the preliminary findings of an on-going comparative research focused on understanding the key drivers of innovations and competitiveness in Hungary. For our empirical analysis, drawing on data from the Eurostat’s harmonized Community Innovation Survey 2010–2012, we used the probit regression model. Since many studies have shown that innovation processes in companies are based on the same principles or similar framework, it is possible to generalize the results of the analysed data and successfully put the recommendations into practice. Our analysis provided mixed results; it has demonstrated that marketing orientations, expenditures devoted to research and development, absorptive capacity, firm size as well as funding support provided to Hungarian MNCs influenced their choice of collaborating partners. Hungarian MNCs were highly probable to collaborate with both local and foreign partners in the enterprise group, while preferring to cooperate with local universities rather than foreign ones.

The foreign subsidiaries of multinational enterprises are involved in two types of networks: an internal (corporate) network within the company including the headquarters and sister subsidiaries, and an external (inter-organizational) network of cooperating partners. Based on the concept of “dual embeddedness,” this paper proposes a model explaining the role of internal and external relationships in developing innovation-related competitive advantages. A path analysis was conducted based on data from the Community Innovation Survey’s 2010–2012 sample of enterprises – members of capital groups from 10 EU member states, mostly CEE (post-transition countries). The results show the positive influence of dual embeddedness on subsidiaries’ innovation, leading to competitive advantages based on cost and on differentiation. A mediating role for external knowledge in the link of internal integration and competitive advantage is posited. External and internal relationships are not mutually exclusive; on the contrary, together they reinforce each other’s impact on innovation performance. Internal integration plays a decisive role in building innovation-related competitive advantages based on cost, whereas external relationships have stronger influence on differentiation-based advantages. Therefore, the management of such firms should promote both types of relationships, considering their distinct roles in the process of building competitive advantages.

The links created on all levels between the parent company and its subsidiaries have generated along time debates regarding the regulations applicable in the audit activity in order to protect the above mentioned entities. Throughout this paper we will progressively describe the pylons that represent the foundation of the regulations subject to the audit activity in this organizational environment.

The objective of the consolidated annual financial statements is to provide a true and fair view of the financial position, financial performance and other information about the group's activity, in accordance with the applicable accounting regulations. From this perspective, and taking into account that the responsibility for the elaboration and fair presentation of the financial statements in accordance with the overall applicable financial reporting framework lies with the management of the entity, supervised by those charged with governance, we find it useful to carry out a study aiming the exception from the compulsoriness to draw up the consolidated financial statements in the context that they will not bring additional benefit for the users in relation to the individual financial statements and the cost/ benefit ratio is unfavorable to the reporting entity. In this respect, we will perform a comparative analysis of the exception from the compulsoriness to draw up the consolidated financial statements at both national and international level and address issues related to the exception to the compulsoriness to draw up the consolidated financial statements that are not going to bring additional benefit for the users, and the cost-benefit ratio is unfavorable to the reporting entity. This study will be conducted from the perspective of the main differences between the provisions of the national accounting regulations (represented by the Order of the Minister of Public Finance no. 1802/2014 for the approval of the Accounting Regulations on the individual annual financial statements and the consolidated annual financial statements as part of our approach) and those of the international reference system