Co-operatives have played a significant role in the agricultural sector in China, particularly since the promulgation of a first national co-operative law in 2007. This chapter offers an analysis of the evolution, diversity, and dynamics of agricultural co-operatives in contemporary China and the institutional environments in which the development of these organizations took place. A multi-dimensional typology of co-operatives is proposed in order to provide a framework of analysis. This analysis enables one to understand the diversified driving forces, the operational patterns, and the organizational missions of agricultural co-operatives in China. The significant contributions provided by each type of co-operative to poverty reduction, work integration, and local community development is emphasized. The chapter concludes with a discussion on the challenges and opportunities for Chinese co-operatives’ future development.
Johnny Sung and Arwen Raddon
The developmental state model was proposed in the early 1990s as a better means of understanding the mechanisms underlying the rapid growth of the Asian Tiger economies, when compared to classic economic models. The national skills systems of South Korea and Singapore are examined in order to consider how the Asian developmental state approach has worked in practice. It is shown that, whilst the state identifies and firmly guides the direction of economic development, the market plays a fundamental role in the concrete delivery of long-term economic objectives. Within this approach, education and training act as a vehicle to achieve broader economic and social development goals. Examples are used to consider how these systems changed throughout the industrialisation process. We reflect on some of the challenges faced over time, which have put the long-term viability of the developmental state approach in question. Most notable is the gradual erosion of the state’s ability to lead capital and labour in order to achieve long- rather than short-term goals, particularly in the face of globalisation.
This article discusses China's growing role in international business. It begins by describing developments in the country's inward and outward foreign direct investment (FDI) and the forms adopted for such investment. China is both a host environment and active player in the international economy which has become both hugely significant, and which poses new challenges for international business analysis. It continues by considering the kind of environment that China presents for international business, one in which the state continues to be closely involved. The last section turns to the implications China has for international business analysis, concerning the role of national institutions, the strategies available to foreign investing firms for coping with environmental complexity, and issues posed by its patterns of outward FDI.
Business people ask of China: what do we need to know in order to do business in China? The answer provided here is that the transformation of China conditions every aspect of business, and that therefore the central consideration for top management of multinational corporations is to understand the linkage between the party-state's economic policies and record, the rapid evolution of the business system, and what this spells out for the making and implementation of corporate strategy. The approach is to conceive of corporations as learning organizations, learning in this case how to operate in a China which is deeply engaged in learning what it means to modernize fast. This article links changes in the macro-context for China to changes in its business system; then briefly illustrates what this has meant, and continues to mean, for implementing corporate strategy and policies in China. The final section discusses the futures of China as the key to making corporate policies there now.
This chapter first outlines the legitimacy of measuring co-operative law by the internationally recognized co-operative principles, and the evolution of co-operative law across the globe over the past decades. Based thereupon it then suggests re-establishing the rationale for a co-operative law which distinguishes co-operatives from other types of enterprises, this rationale being the sustainable development enhancing diversity of enterprise types. The locus of competition/competitiveness is shifting from financial performance to the normative capacity of enterprises to contribute to sustainable development. Co-operatives have a competitive advantage in this respect. This chapter will therefore suggest how to translate this capacity into the legal structure of co-operatives. It does so against the background of the economic, political, sociological, and socio-psychological changes and challenges, of which globalization is both cause and effect, and which impact the co-operative values and the notion of (co-operative) law and of law-making.
Over the last decades, the discussion on climate change, together with catastrophic events in the power sector, has raised global interest for radical policy changes. Since the year 2000, Germany´s Renewable Energy Sources Act (EEG) has been a forerunner in triggering large-scale decentralized deployment of renewable energy. Although built on a relatively large social consensus, the consequences of the German ‘Energiewende’ have also raised conflicts between communities and investor-oriented project developers. This chapter reviews the increasing role of energy co-operatives as means to involve civil society, mitigate conflicts in planning, and distribute subsidies more evenly among a variety of often rural stakeholders.
Co-operatives: A Development Strategy?: an analysis of argan oil co-operatives in south-west Morocco
The examination of the life cycle, institutional structure, and governance and policy environment of co-operatives in the argan oil sector, in south-west Morocco, outlines the successes and setbacks of the co-operative model as a suitable tool for economic and social development in rural areas. Despite the positive development outcomes argan oil co-operatives attained, they strayed from four basic co-operative tenets: democratic decision-making, equitable profit distribution, open membership, and member education on co-operatives. Starting from this analysis, this chapter argues that the success of argan oil co-operatives is to be attributed to their abandonment of the basic co-operative principles. Furthermore, it seeks to understand the conditions that make co-operatives feasible and effective in particular environments and how co-operatives, or employee-centric firms, can be adapted to their environments, or vice versa, through e-commerce and financial transparency in order to generate economic and social development.
Nai H. Wu and Laszlo Tihanyi
When corporations mature, they may become large multinational firms. However, despite the large amount of literature on the internal organization and governance of multinational firms, there is a lack of knowledge about corporate governance in them. This chapter discusses multinational firms, which are described as complicated organizations with complex corporate governance mechanisms. It first presents a review of literature on the governance of multinational firms, and then identifies three main research streams: headquarter governance, coordination and control of foreign subsidiaries, and knowledge flow within multinational firms. A second literature review in the chapter focuses on the influence of governance on the internationalization process. The chapter also studies the governance problems that are presented by the classic models of international business.
Corporate Social Responsibility and Theories of Global Governance: Strategic Contestation in Global Issue Arenas
David L. Levy and Rami Kaplan
This article develops a framework in which corporate social responsibility (CSR) represents the contested terrain of global governance. The rise of CSR is one of the more striking developments of recent decades in the global political economy. Calls for multinational corporations (MNCs) to demonstrate greater responsibility, transparency, and accountability are leading to the establishment of a variety of new governance structures—rules, norms, codes of conduct, and standards—that constrain and shape MNCs' behavior. CSR is thus not just a struggle over practices, but over the locus of governance authority, offering a potential path toward the transformation of stakeholders from external observers and petitioners into legitimate and organized participants in decision-making. This article points to two distinct perspectives on CSR; as a more socially embedded and democratic form of governance that emanates from civil society, or alternatively, as a privatized system of corporate governance that lacks public accountability.
Cynthia A. Williams and Ruth V. Aguilera
Comparative studies of corporate social responsibility (CSR) are relatively rare, certainly as contrasted with other related fields, such as comparative corporate governance or comparative corporate law. This is to be expected in a field, such as CSR that is still ‘emergent’. While theoretical perspectives on corporate social performance or stakeholder management have been developed over two decades, it is only in the last decade that businesses have begun to exhibit serious evidence of CSR in their strategic management and stakeholder social reporting. This article goes on to explore how CSR can reflect wider national business and governance systems, such as market structures and rules, institutional norms, and respective responsibilities of governments, corporations and other social actors. A particularly exposed role, most notably for multinational corporations from the global north, is emerging for corporations in developing countries.
This article maps out the crucial role and responsibilities for business in fighting poverty and acting responsibly in developing countries. It begins by proposing different ways to categorize the literature on corporate social responsibility (CSR) in developing countries. It then reviews the research which has been conducted at a global and regional level, before considering the main CSR drivers in developing countries. Finally, it proposes a model of CSR in developing countries, before concluding with a summary and recommendations for future research. What is clear from this article is that CSR in developing countries is a rich and fascinating area of enquiry, which is becoming ever more important in CSR theory and practice. And since it is profoundly under-researched, this enquiry also represents a tremendous opportunity for improving the knowledge and understanding about CSR.
The Emergence of Multi-Stakeholder Co-operatives in the Movement of Farm Machinery Co-operatives (CUMAs) in France
In rural areas, in order to respond to economic and social needs, the co-operative movement has always developed entrepreneurship models based on democracy, solidarity, responsibility of actors, proximity, transparency, and consideration of future generations. Amongst others, the 11,500 farm machinery co-operatives (coopératives d’utilisation de matériel agricole or ‘Cuma’) which are active in the French countryside can testify to this dynamism. Catching the opportunity of the introduction of
Alex Nicholls and Benjamin Huybrechts
This chapter outlines the history of the Fair Trade movement, and discusses several key issues and challenges it faces. It then explores the relationship between Fair Trade and the co-operative and mutual movement, considering the close connection between the two, both in terms of producer groups and of wholesale organizations. Both share key elements of participation and empowerment and pay careful attention to economic development and fair governance. The development of Fair Trade globally is then examined, and some of its wider impacts, such as fairer supply chain practices, are explored. The authors conclude by affirming that Fair Trade is more than just a re-actualization of the co-operative idea
Andreas Georg Scherer and Guido Palazzo
This article analyzes the advent of globalization and delineates its impact on the corporation and its social responsibilities. It begins with an explanation of the concept of globalization. Next, it describes the traditional paradigm of corporate social responsibility (CSR) where the responsibilities of businesses are discussed vis-à-vis a more or less properly working nation-state system and a homogeneous moral. It describes the new situation of regulatory gaps in global regulation, an erosion of national governance, and a loss of moral and cultural homogeneity in the corporate environment. It also discusses the consequences of the post-national constellation with the help of two recent observations of business firms' behavior which call for a fresh view of the concept of CSR. Finally, it describes the necessary paradigm shifts toward a new politically enlarged concept of CSR in a globalized world.
Mauro F. Guillén and Esteban García-Canal
Emerging market multinationals have expanded around the world and upgraded their capabilities at the speed of light using aggressive growth strategies. This chapter argues that the success of these companies lies on new axioms of global competitiveness. It aims to answer two questions. First, do these firms share some common distinctive features that distinguish them from the traditional MNEs? Second, how have they been able to expand abroad at dizzying speed, in defiance of the conventional wisdom about the virtues of a staged, incremental approach to international expansion? Before being in a position to answer these questions, the established theory of the MNE is outlined, and the extent to which its basic postulates need to be re-examined is explored.
Seán Ó Riain
This article relocates managing human capital (HC) into the larger world of which firms are merely part. A firm's production strategies work in an institutional framework that shapes how the benefits of education are distributed and the nature of skills, work, its control, and rewards. The article builds a complex model of five elements: inputs from firms' production strategies, national welfare production regimes, pertinent labour norms and interests, the firms' goals and interests, and the political system – collectively determining a sixth, the politics of firm-level HC formation. It contrasts notions of work, education, and welfare in Germany, Japan, Sweden, the US, and the UK. This analysis stands on Esping-Andersen's distinction between modes of welfare capitalism: Liberal, Social Democratic, and Christian Democrat.
W. Richard Scott and Raymond E. Levitt
Megaprojects are characterized by complex technical interdependencies—both compatible and contentious—novel technologies and systems, cross-cutting regional and political forces, and the presence of multiple institutional frameworks. This chapter stresses the role played by institutions. Employing a broad conception, it views institutions as consisting of three types of elements: regulatory (rules, laws, orders), normative (norms and values) and cultural-cognitive (beliefs, schemas, frames). As a form, megaprojects incorporate and are subject to a diverse, complex, and conflicting combination of elements. Viewed as an organization field, megaprojects confront a highly diverse set of participants who exhibit varying degrees of embeddedness in their local environment and are obliged to manage their operations across multiple changing phases which entail shifts over time in their power and influence. These challenges require that successful megaprojects develop flexible legal-contractual managerial controls, common norms and values, and shared identities anchored in a robust project culture.
Petra Christmann and Glen Taylor
This article addresses the literature on multinational enterprises' (MNEs') and the environmental conduct of the global supply chain, their environmental impact upon host nations, and the governance of their environmental conduct in the global economy. It concentrates on international business (IB) research. It evaluates relevant studies from the economics and international political economy literature. Differences in the availability of resources across countries are fragmenting forces that lower the global standardization of MNEs' environmental strategies. MNEs tend to have strong bargaining power in pre-entry negotiations with host governments. MNE subsidiaries in emerging economies can have broader effects on local firms' environmental conduct. IB research presents many potential ways to expand the understanding of how MNEs and global supply chains affect the natural environment and how these impacts can be regulated in the global economy, and about MNEs' role in shaping external pressures for environmental protection. Finally, three areas for future IB research on environmental issues are reported.
David O. Faulkner
The objectives of this article are to explain the rationale for the existence of the multinational corporation, to describe the stages of internationalization, to review the four distinct forms of multinational corporate strategy and structure, and to consider their dynamic nature and relate them to typical contingent circumstances. The multinational corporation (MNC) has dominated the international business environment at least since World War II. One of the most popular academic rationales for the MNC is that of Dunning's eclectic paradigm (advantages of ownership, location, and internalization (OIL)). Rugman, Lecraw, and Booth provide a different characterization of the same OLI elements used by Dunning by combining the three OLI elements into two factors: firm-specific advantages (FSAs — which include ‘O’ and ‘I’) and country-specific advantages (CSAs — which incorporates ‘L’).
D. Eleanor Westney
Japanese MNEs are arguably the most studied population of MNEs next to those from the United States, and in some aspects — particularly the extent to which home country practices and systems are carried across borders — they have been more exhaustively analysed than those from any other country. Summarizing this extensive literature poses a formidable challenge. This article tries to accomplish three things. First, it provides an overview of the scope, timing, and destination of Japanese foreign direct investment (FDI) — three of the fundamental topics of interest in international business — in order to supply a basic map of when and where Japanese companies extended their operations abroad. Second, it takes the research on Japanese MNEs conducted in the 1970s as a benchmark to examine their evolution over time. Finally, it briefly looks at Japan as a host country for foreign multinationals.