Archive for the ‘4th Edition’ Category

Control and Organizational Learning in MNCs: an Analysis Through the Subsidiaries

Wednesday, October 1st, 2008

by Olivier de  La Villarmois, Christophe Benavent, and Firmanzah

ABSTRACT

For any large complex organization the problem of ensuring its constituent activity in accordance with overall policy and, at the same time adapt to its environment, is a central and continuing concern. Thus, the fundamental question which must be answered is ‘what control mechanism can facilitate the adaptation process in the local market?’
In multinational corporations (MNCs), the control mechanism, imposed by headquarters, has an objective to integrate the subsidiaries’ activities to the global strategy. However, the presents on the local market necessitates the adaptation to the local environment characteristics. The objective of this paper is to contribute solving the dilemma between control and learning in an MNC.  The interaction between control and learning process will be analyzed. The literature study leads us to develop a typology based on two factors: the stage of the learning process (knowledge production and mobilization) and its locus (local or global). The combination of these two factors provides four configurations. The control system produces knowledge, both locally and globally, which can be mobilized by the local or global units.
A proposition to resolve our main problem is formulated. The combinations of these four configurations make it possible for an MNC to resolve the dilemma between control and learning. An application of this typology has been carried out by analyzing case studies of MNCs operating in Indonesia.

Keywords: control, organizational learning, multinational corporations, local / global

Negative Attitudes toward U.S. Products: Malaysian Muslim Consumers’ Perspective

Wednesday, October 1st, 2008

by Khairul Anuar Mohammad Shah, and Md Nor Othman

ABSTRACT

Consumer attitudes toward foreign products from various countries can vary significantly from one country to another. Consumer attitudes and behavioural intentions in a country can also vary overtime due to a change in the country’s level of industrialization, marketing development and lifestyle. Therefore, it is beneficial for this study to identify the attitudes of the consumers towards foreign products in a particular market. The sources of negative attitude such as country of origin effects (Han, 1988), consumer ethnocentrism (Shimp and Sharma, 1987) and consumer animosity (Klein, Ettenson, and Morris, 1998), are the factors that can influence the willingness of the consumer to purchase foreign made products. This study was gathered via survey questionnaire on the attitudes of Muslim respondents in Malaysia towards US made products. The findings suggest that animosity and ethnocentrism are negatively associated with willingness to buy US made products.

Keywords: Negative attitudes, ethnocentrism, animosity and willingness

Perceived Boundarylessness in Relation to Success Factors: A Descriptive Study of Nine Bangalore Organizations in the IT sector

Wednesday, October 1st, 2008

by Mary Mathew and Randhir R.P.

ABSTRACT

The importance of organization boundaries and their nature of permeability is of special concern in a globalized world.  The role of systems theorists and that of boundary management intervention theorists show the need to study the peoples sub system more. Managerial perceptions are critical in this context.  Sensing and perceiving boundarylessness will lead to a better consciousness of boundary management.  This paper describes the way nine HR managers perceive their boundaries in the IT sector of Bangalore. The managers are asked about various types of boundaries namely, vertical, horizontal, external, geographic and psychological boundaries. The boundaries are also understood in terms of success factors namely, innovation, flexibility, speed and integration. Results show variations in managerial perception of organizational boundarylessness in the context of the boundary types. Interestingly innovation remains controversial as none of the Indian managers concur on the influence of  boundaries on innovation.

Keywords: perceived boundarylessness, vertical boundaries, IT sector, Bangalore, human resource

Strategy Adoption and Firm Performances: A Study on SMI Owned by Bumiputera’s in Selangor (Malaysia)

Wednesday, October 1st, 2008

by Zaini Jamaludin

ABSTRACT

Small and medium enterprise (SMI) has played an important role in the development of the Malaysian economy and the world as a whole. According to the National Productivity Corporation (NPC) annual report in 1996, SMI has catered 80% of the manufacturing sector in Malaysia. The emergence of the SMI in various sectors shows that the government is serious in creating Industrial and Commerce Society (MPP) as the catalyst of the Malaysian economy. However, most of the SMI’s markets are homogenous; therefore they lead to the heavy competition among them. The businesses in SMI sectors are very risky. Most of them can not stand even for a year. In order to success in the pure competition market structure that involves SMI, they need to choose a certain strategy to make them stay as player. Therefore, this study tried to find what kind of strategy implemented by the SME in Selangor State of Malaysia, the first developed state announces by the Malaysian government. It has the entire infrastructure needed for the SMI to grow and a very huge market to tap but the competitions is very tense. The study also tries to relate between the strategy chosen and the effect on the performance of SMI. The samples are gathered from 8 districts out of 9 and being analyze using Pearson Correlation on SPSS package. Among the strategy tested are low price strategy, low quality strategy, high quality strategy, differentiation strategy and focus strategy.

Keywords: SMI, Entrepreneurship, Strategy, Firm Performances.