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This study examines how changes in political leadership and rising U.S. polarization flow through societal culture to corporate culture. Using quasi-experimental methods, we find that executives adjust culture messaging in earnings calls on extensive and intensive margins across varying political contexts. These changes follow two pathways: under political alignment, executives emphasize their firm’s culture, motivated by pride; and under political misalignment, executives reduce cultural messaging—particularly innovation, quality, and respect—due to lower perceived growth opportunities. Additional tests reveal these changes reflect strategic communication rather than fundamental cultural changes. Our findings highlight how cultural messaging varies with political context.
Transcultural ethnography is about understanding the flows of culture and its consequences as organizations expand their global reach across national boundaries. This scope of research focus beyond a company’s nation of origin is precisely what distinguishes international business from other types of business studies that are primarily domestic. Yet, the concept of national borders is fraught with controversy both in real world actuality as well as in ivory tower discussions. An ethnographic perspective that considers both culture and borders as concepts that are often overdetermined in our efforts to put together aggregated understandings of a world increasingly characterized by cultural flows as well as barriers is essential to theory building. Since transcultural ethnography involves research at globally distributed sites, a comprehensive understanding of how changing cultural contexts affect multinational enterprises (MNEs) and in turn the reciprocal effects of the MNEs on the host environments is essential to advancing transnational theory.
This chapter identifies five fundamental trade-offs of supply chain management. Four of them are operational trade-offs impacting firms’ supply chain networks, resource utilization, and exposure to supply–demand mismatches. The last one is between revenue growth and supply–demand mismatches such that it affects the growth strategy. Elaborating on those trade-offs, this chapter proposes four effective strategies depending on firms’ sensitivity to supply–demand mismatches and business models.
Transcultural ethnography seeks to understand how culture affects the transfer of firm competencies abroad as it internationalizes and seeks to integrate its operations on a global scale. Decidedly comparative by nature, this form of ethnography focuses on cultural contradictions or anomalies belying traditional international business (IB) constructs. Here the IB ethnographer seeks to understand how national culture affects an organization and how this in turn affects its internationalization.
Intracultural ethnographic research involves studying the flows of culture(s) in all its different expressions – national, occupational, functional, and so on – as they function, co-evolve, and affect the day-to-day lives of individuals within a single organization. The focus here is on the internal organizational challenges and dynamics that are ubiquitous to such complex cultural contexts as foreign direct investments, cross-national mergers and acquisitions, and international joint ventures. The micro context of these kinds of organizations is in fact the global meeting ground where people experience the everyday challenges of working with diverse Others in today’s culturally complex world. Part I of this book explores the challenges and opportunities facing organizations when there are competing national cultural assumptions around how work is done, language differences, and multiple sources of power and influence.
In today’s globalized world, a deep understanding of how culture affects international business phenomena is critical to scholarship and practice. Yet, armed with only superficial measures of national cultural differences, scholars and practitioners find themselves stereotype rich and operationally poor where culture meets real-world international business context. “Culture” is substantially more complex than this, made up of multiple interacting cultural spheres (national, regional, institutional, organizational, functional) that are differentially enacted by individuals many of whom are multicultural themselves. Settings in international business are therefore rife with multilevel cultural interactions as individuals with diverging cultural assumptions are brought together in real time (often virtually) across distance and differentiated contexts. This coursebook on ethnography in IB is the first of its kind, offering students, academics, and executives a way to study, understand, reduce uncertainty about, and make the most of the effects of culture in today’s global and multicultural business contexts.
Strategic ethnography is an approach to organizational learning where a firm utilizes its internal human resources as insider-ethnographers to reflect upon their own operations and organizational culture. This kind of ethnography is distinct from intracultural and transcultural ethnography where the researcher is an organizational outsider. Here the ethnographic exercise is performed proactively by organizational insiders and designed to feed into the firm’s strategic mission to facilitate global integration, innovation, growth, and renewal.
As the prefix “intra” suggests, intracultural ethnography focuses on the cultural dynamics within a given organization. In the case of international business, the cultural arena under study is that of an international organization in one location and the research questions that arise from this kind of study are generally framed at the organizational level of analysis and are focused around making sense of the diverse beliefs, norms, values, and customs that the prople making up these culturally complex organizations use in their day-to-day work. Although culture is a group-level phenomenon, it is enacted by individuals. As such, the cultural identity of the individuals is introduced in this section as the key construct to understand for doing intracultural ethnographic research.
Lean manufacturers mitigate the mismatches between supply and demand by smoothing production and stabilizing demand. To stabilize demand, they follow an aggressive-selling strategy such that salespeople work relentlessly to keep sales at target levels. To smooth production, they cut all types of waste (i.e., in the form of redundancy, idleness, and rework) and move products according to a pull production model. This chapter delves into design and implementation characteristics of lean manufacturing and links them to the fundamental operational trade-offs. It also discusses challenges of lean manufacturing to highlight potential limitations of lean systems.
This study expands theoretical research on negotiated culture by testing basic assumptions in the context of a German–Japanese joint venture. Data collected by semi-structured interviews are analyzed using textual analysis software to uncover key issues that became catalysts for negotiation. Results include a model of cultural negotiation linking organizational events with issue domains as points of departure for negotiations. Results show that aggregate models of cultural difference are useful only to the extent that they serve as latent conceptual anchors guiding individuals’ cultural responses to events. The study shows that structural/contextual influences together with individuals’ culturally determined sensemaking with regard to specific organizational events are more useful determinants of negotiated outcomes. Authors conclude that, while it is unlikely that we can predict organizational culture formation in complex cultural organizations, we can understand the process of cultural negotiation and as a result be better prepared to monitor and manage in culturally diverse settings.
This article studies how cultural heritage influences the differences in risk taking in financial markets. We combine data on the asset allocation of second-generation immigrants in Sweden with risk-taking culture in their parents’ countries of origin. We find that descendants of risk loving cultures are more likely to participate in equity markets, and, conditional on participation, allocate a larger share of financial wealth to equities. Moreover, they take on more idiosyncratic risk by favoring directly held stocks over mutual funds and forming more volatile portfolios. These findings are not driven by selective migration or other country of origin characteristics.
We are the first to study the interplay between corporate diversification and debt maturity, both theoretically and empirically. Our models predict that diversification mitigates the debt-overhang problem, making long-term debt more attractive in the presence of rollover costs. Using data on 30,135 firms from 1978 to 2022, we find that multi-division firms have debt maturities at least 1 year longer than stand-alone firms, especially when facing debt overhang. Consistent with our predictions, the excess value of Berger and Ofek (1995) and Mansi and Reeb (2002) increases with debt maturity, suggesting that traditional measures of the diversification discount could be misleading.
We utilize Bayesian model averaging to estimate a stochastic discount factor (SDF) for single-stock options. A Bayesian model averaging SDF outperforms reduced-form benchmark models in-sample and out-of-sample in pricing option return anomalies and portfolios. We document that the SDF is dense in characteristics with the implied-realized volatility spread, option return momentum, and jump risk emerging as the most likely included factors. The option SDF exhibits a distinct business cycle pattern and aligns more closely with its counterpart in the stock market than in the bond market.
This study challenges the predominantly positive view of entrepreneurial team diversity by exploring its negative effects on start-up survival across different development stages. Drawing on secondary data from interviews of failed start-ups retrieved from the Failory database, triangulated with additional publicly available sources of evidence, the research employs an inductive qualitative analysis grounded in the Gioia method and a retrospective approach, to examine which demographic, informational, personality, and cognitive diversity characteristics contribute to failure during the idea, product development, and launch stages. Findings reveal that personality and cognitive diversity are critical in idea development, personality and informational diversity during product development, and personality and demographic diversity during the launch stage. Adopting a dynamic perspective, the study deepens the understanding of team dynamics and venture survival in the entrepreneurial context. The findings guide managers and policymakers on leveraging diversity as a strategic asset while addressing challenges throughout the venture’s lifecycle.
Over the past decade or so, ethical recruitment has become increasingly popular as an aspirational standard for addressing labour violations and human rights issues in the transnational recruitment of migrant workers. While multi-national corporations (MNCs) – both international buyers and their Tier 1 suppliers – have been quick to adopt and codify ethical recruitment principles in their company codes of conduct, the same cannot be said for the small and medium enterprises (SMEs) further down the supply chain. Grounded in a case study of a small packaging company in Penang, Malaysia, this article explores how SMEs navigate their human resources and financial constraints in their attempt to practise ethical recruitment. We conclude with some brief reflections on the role of recruitment agents and the (in)equitable allocation of costs across global supply chains in making ethical recruitment a realistic and achievable goal for SMEs.
Immersive technologies, such as augmented reality (AR) and virtual reality (VR), allow people to immerse themselves in a complete virtual environment, or enhance the physical world with digital elements. Also referred to as extended reality (XR), these technologies create experiences that feel real, whether fully or partially virtual. The impact of XR on human rights and society is linked to a large-scale consumer breakthrough, which could pose significant human rights risks. This article discusses these risks through the lens of four public values rooted in human rights instruments: privacy, autonomy, non-discrimination and a clean and healthy environment. It highlights the urgency for governments to protect and companies to respect the rights of both XR users and non-users. The aim is to initiate discussions on early interventions, avoiding missteps seen during the rise of social media, when benefits were encouraged, while risks were overlooked.
The 2017 French Law on the Duty of Vigilance of Parent and Lead Companies has been hailed as a pioneering national legislation to hold corporations accountable for human rights and environmental abuses. Most lawsuits brought under this law have faced a plethora of admissibility objections, and so far, only one case has resulted in a decision on the merits. Initial formalistic court decisions on admissibility have now been mostly dismissed. However, critical questions around the role and powers entrusted to judges under the law remain contested.
Labour Law, now in its third edition, is a well established text which offers a comprehensive and critical account of the subject by a team of leading labour lawyers. It examines both collective labour relations and individual employment rights, including equality law, and does so while having full regard to the international labour standards as well as the implications of Brexit. Case studies and reports from government and other public agencies illuminate the text to show how the law works in practice, ensuring that students acquire not only a sophisticated knowledge of the law but also an appreciation of its purpose and the complexity of the issues which it addresses.