| Mitigating the Liability of Foreignness: Corporate Citizenship in Global Companies |
| | Fombrun, Charles J. | New York U. | cfombrun@stern.nyu.edu | 212-998-0211 |
| | Gardberg, Naomi A. | New York U. | ngardber@stern.nyu.edu | 212-998-0416 |
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As companies extend their operations on a global scale, they often allocate scarce resources to citizenship
programs -a set of activities that encompasses pro-bono work, philanthropy, support for community
education, and protection of the environment.
This paper examines the factors that induce globalizing companies to sponsor such costly citizenship
programs in the countries they enter, and how companies benefit from those programs. Drawing on
institutional theory, we argue that citizenship programs are strategic investments that companies make
to overcome nationalistic barriers and facilitate globalization. We suggest that corporate citizenship
is a key component of a reinforcing cycle through which globalizing companies build reputation, legitimacy,
and performance in an effort to overcome their "liability of foreignness." We conclude with a proposal
for research that systematically examines the reputation-building efforts of companies in the global arena.
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| | Keywords: Globalization; Citizenship; Reputation |
| When the cat's away: A content analysis of MNC overseas recruitment print ads |
| | Leong, Siew Meng | National U. of Singapore | fbalsm@nus.edu.sg | (65) 874-3172 |
| | Tan, Hwee Hoon | National U. of Singapore | fbatanhh@nus.edu.sg | (65) 874-6434 |
| | Loh, Marissa | National U. of Singapore | fbalsm@nus.edu.sg | (65) 874-3172 |
| | Two issues are investigated in this study on discrimination in recruitment print ads; first, would
MNC affiliates practice discrimination in their recruitment print ads in a lax regulatory environment and
second, how do MNC affiliates vary in their discrimination levels compared to each other and to the local
businesses. Insights from insitutionalization theory suggest that in an environment that is weakly regulated,
mimetic isomorphism, rather than coercive isomorphism may be more dominant. Thus organizations tend
towards isomorphism by adopting the less stringent requirements. Second, the MNC affiliates' environment
consists of both the host and home countries' legal imperatives and cultural influence. With the lack of a
strong legal framework in the host country, the home country's legal and cultural imperatives would be more
salient.
A total of 1122 recruitment print ads were examined. Discrimination was found in the print ads of all
organizations. Among the MNC affiliates, U.S. affiliates were least discriminatory, followed by Japan and
U.K. affiliates.
When Singapore firms were included, they were found to be least discriminatory. Singapore firms however,
became more discriminatory when the request for a recent photograph was considered in the discrimination
index. This difference in discrimination levels raises the need to reexamine sources that constitute
discrimination. Non-traditional sources of discrimination in the West may be traditional sources of
discrimination in a different context.
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| | Keywords: Discrimination; Recruitment Advertising |
| A Research Note on the Phenotype Interpretation of Isomorphism and Diversity: Company Structures and Strategies in the International Computer Industry |
| | Duysters, Geert | U. of Maastricht / MERIT | g.duysters@unimaas.nl | (31)-43-3883699 |
| | Hagedoorn, John | U. of Maastricht / MERIT | j.hagedoorn@mw.unimaas.nl | 31-43-3883897 |
| | The objective of this research note is to detect whether companies that face the same international, environmental conditions become increasingly similar to each other. Or to put it differently, we raise the question whether a homogeneous, international environment creates a homogeneous group of companies, leading to organizational isomorphism.. Adaptation to changes in the environment materializes as firms try to increase their fit with the environment. A better fit is thought to increase the profitability of companies which enhances their survival chances in the long run. Also, less successful firms try to mimic the structures and strategies of their more successful competitors.
In a rapidly changing environment it is doubtful whether all organizations are changing quickly enough to increase their fit with a new environmental state. This slow process of adaptation is referred to as relative inertia. Because of this relative inertia, selection forces are granted time to develop. Inspired by the Darwinian conception of natural selection many authors in the population ecology tradition contend that organizations that are best adapted to a specific environment survive, while other less adapted organizations die. In that context, isomorphism among organizations implies that only those having acquired a good fit with their environment will survive.
Although the imprintment thesis is discussed elaborately in the literature there is, to the best of our knowledge, little empirical research on, for instance, the continuing effects of the domestic or regional background of companies on their behaviour and organization in an international environment. |
| | Keywords: Isomorphism; internationalization; competition |
| Organizational adaptation in transition economies: A study of the Central European banking industry |
| | Tihanyi, Laszlo | California State U., Fullerton | ltihanyi@fullerton.edu | (714)-278-4555 |
| | Hegarty, W. Harvey | Indiana U., Bloomington | hegarty@indiana.edu | (812)-855-2580 |
| | This paper addresses how organizations adapt to environmental changes in transition economies. Drawing on institutional theory, we explore the organizational processes at ten banks in three Central European countries, the Czech Republic, Hungary, and Slovenia. We describe how bank executives perceived and dealt with institutional changes. We examine the particular effects of inherited problems and new market institutions on organizations. The study illustrates the role of various constituents in organizational adaptation. In discussing the conclusions of the study, our emphasis is placed on the changes in institutional environments in transition economies. |
| | Keywords: institutional theory; transition economies; inductive study |