Business Commons^™

Management Whipsawing: The Staging Of Labor Competition Under Globalization, Ian Greer, Marco Hauptmeier

Ian Greer

The authors examine management whipsawing practices in the European auto industry based on more than 200 interviews and a comparison of three automakers. They identify four distinct ways in which managers stage competition between plants to extract labor concessions: informal, hegemonic, coercive, and rule-based whipsawing. Practices at the three auto firms differed from one another and changed over time because of two factors: structural whipsawing capacity and management labor relations strategy. In the context of economic globalization, whipsawing is an effective means for managers to extract concessions, to loosen national institutional constraints, and to diffuse employment practices internationally.

Order Of Entry Into Foreign Countries By Us Multinationals Since 1965: Role Of Psychic Distance Over Time And Across Sectors, Suresh Singh

Suresh Singh

Observations of internationalizing manufacturing firms, in the late seventies, revealed that the order in which firms enter foreign countries is influenced by psychic distance (perceived closeness based on factors such as culture, language and development level). Since then, the world has undergone rapid globalization and services have replaced manufacturing as the dominant sector of the world economy. To ascertain whether (a) psychic distance is still relevant and (b) industry sector impacts the relationship between psychic distance and order of entry, this paper analyzed the order of entry into foreign countries by US multinationals in manufacturing and services sectors since 1965. …

Understanding The Impact Of The Global Economic Crisis On U.S. Smes' Trade Exports To Bric, Jayati Ghosh, Denise Lucy, Françoise Lepage

Denise Lucy

The global economy offers vast trade opportunities for U.S. businesses. United States’ SMEs are grossly under-represented in the global market. It is essential that U.S. SMEs adopt a global approach by expanding trade focus to include the emerging BRIC markets. Demographics and increasing purchasing power in the emerging countries of Brazil, Russia, India and China (BRIC) offer significant trade potential for U.S. SMEs export expansion. However, there are external and internal barriers to expanding beyond the NAFTA region. Free trade agreements reduce trade barriers, while creating opportunities for U.S. exports. Although US SMEs face their own set of challenges to …

From The Firm To The Network: Global Value Chains And Employment Relations Theory, Tashlin Lakhani, Sarosh Kuruvilla, Ariel Avgar

Sarosh Kuruvilla

We posit that traditional employment relations theories that focus on individual firms embedded in distinct national institutional contexts are no longer adequate for the analysis of employment relations in a globalized era where production and services are increasingly coordinated across countries and firms. Building on Global Value Chain theory, we introduce a configurational framework that explicitly addresses the employment relations implications of the interconnections within and between firms in the global economy. We argue that different value chain configurations will evidence different employment relations patterns and we validate our framework by applying it to the study of three contemporary global …

Regional Integration And Transnational Politics: Popular Sector Strategies In The Nafta Era, Maria Lorena Cook

Maria Lorena Cook

[Excerpt] This chapter argues that although economic integration between the United States and Mexico had been taking place for some time, it was the formal recognition of this process as represented by the discussions surrounding the North American Free Trade Agreement that facilitated transnational political action by non-state actors. Whereas the globalization of the economy and the prevalence of neoliberal economic policies may be considered by some to undermine popular sector organization and actions, formal recognition of regional economic integration in North America has produced a ‘transnational political’ arena that has expanded the resources available to non-governmental groups, increased their …

Working Through The Past: Labor And Authoritorian Legacies In Comparative Perspective, Teri L. Caraway (Ed.), Maria Lorena Cook (Ed.), Stephen Crowley (Ed.)

Maria Lorena Cook

[Excerpt] Democratization in the developing and post-communist world has yielded limited gains for labor. Explanations for this phenomenon have focused on the effect of economic crisis and globalization on the capacities of unions to become influential political actors and to secure policies that benefit their members. In contrast, the contributors to Working through the Past highlight the critical role that authoritarian legacies play in shaping labor politics in new democracies, providing the first cross-regional analysis of the impact of authoritarianism on labor, focusing on East and Southeast Asia, Eastern Europe, and Latin America. Legacies from the predemocratic era shape labor’s …

The Globalization Of Service Work: Comparative Institutional Perspectives On Call Centers (Introduction To A Special Issue Of The Industrial & Labor Relations Review), Rosemary Batt, David Holman, Ursula Holtgrewe

Rosemary Batt

This introduction to the special issue on the globalization of service work provides an overview of the call center sector and its development in coordinated, liberal market, and emerging market economies. The introduction's authors situate this research in literature on the comparative political economy and industrial relations. Drawing on qualitative research and a unique survey of 2,500 establishments in 17 countries conducted in 2003-2006, they discuss the extent of convergence and divergence in management practices and employment relations. They also describe the research methodology for the overall research project, highlight its major findings, and summarize the contributions of the thematic …

How Institutions And Business Strategies Affect Wages: A Cross-National Study Of Call Centers, Rosemary Batt, Hiroatsu Nohara

Rosemary Batt

This paper, drawing on a 2003-2006 establishment-level survey of 1,819 call centers in 15 countries, examines effects of industrial relations institutions and employer strategies on wage variation across coordinated, liberal, and emerging market economies. The authors find several contradictory patterns, which confirm theoretical predictions for some countries and contradict them for others, suggesting diverse institutional reactions to the emergence of a new economic activity. Consistent with prior research, Denmark, France, and Sweden exhibit patterns of low wage dispersion and no union wage premium, and the United States, Canada, and emerging market economies exhibit quite high levels of dispersion. Contrary to …

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …

Introduction, Noel Gaston, Ahmed M. Khalid

Ahmed Khalid

Extract: Globalization is very much part of the modern vernacular. Arguably, it was first used by McLuhan and Fiore (1968) when they introduced the concept of the ‘global village’. Globalization is characterized by the growth of the international trade of goods and services, the growth in foreign direct investment (FDI) as well as the political and social linkages that accompany growing economic integration. Outwardly, the driving forces seem to be the decline in administrative barriers to trade, sharp falls in the costs of transportation and communication, fragmentation of production processes and the development in information and communication technologies (ICT). Arguably, …

Borderless Bits: Electronic Globalization And Its Social Consequences, Nikhilesh Dholakia

Nikhilesh Dholakia

Globalization of services with the aid of electronic technologies - popularly called outsourcing or offshoring - has been accelerating. In this paper, the factors that drive electronic globalization - as distinct from factors that drive the general process of globalization - are discussed briefly. A simple model of a 2-firm USA-India dyad engaged in outsourcing relationships is presented to outline the economic basis for electronic globalization. By introducing wider political and cultural forces, progressively more complex views of the electronic globalization phenomenon are presented. Finally, the interplays of the economic, political, and cultural forces are explored to arrive at a …

E-Commerce Patterns In South Asia: A Look Beyond Economics, Nir Kshetri, Nikhilesh Dholakia

Nikhilesh Dholakia

Conflicting and complex forces are shaping the diffusion patterns of the Internet and e-commerce in South Asia. Drawing upon the literature on institutional theory, we explore the drivers and inhibitors of the Internet in South Asian countries. We examine the influence of the three pillars of institutions (Scott, 1995) on the digital world of South Asia. The paper discusses how regulatory, normative, and cognitive institution–such as laws, relationships, culture, and habit–have shaped the diffusion patterns of the Internet and e-commerce in South Asia.

Regional Integration And Transnational Labor Strategies Under Nafta, Maria Cook

Maria Lorena Cook

[Excerpt] This paper argues that while the internationalization of the economy has tended to weaken national labor movements, the internationalization of domestic politics may expand the traditional arenas for strategic action for labor unions. In particular, the North American Free Trade Agreement has been portrayed by some of its many critics as representing the consolidation of a neoconservative or neoliberal project that will not only shape the future economic development of the region, but also constrain its social policies and limit its political options (Grinspun and Cameron 1993: Chapter 1). However, these same critics have also noted that the debate …

Convergence And Diversity In International And Comparative Industrial Relations, Lowell Turner, John P. Windmuller

Lowell Turner

[Excerpt] In this essay, we reexamine a critical paradox in international and comparative industrial relations, a paradox that already decades ago demonstrated its ability to intrigue scholarly curiosity (Galenson, 1952,1963; Kerr et al, 1960). As we see it, convergence along a number of important dimensions, such as labor law and organizational and bargaining structure, is occurring simultaneously with widespread cross-national and local divergence, or diversity, in industrial relations practices and outcomes. Along with economic and political interdependence and with intensifications of market competition, convergence and diversity both appear to be product of an increasing spread of markets and ideas sometimes …

Globalization And Business Culture, John Hooker

John Hooker

Globalization is often associated with the idea that world cultures are homogenizing, but the reality is the opposite. We are seeing cultural deglobalization, for two primary reasons. One is that a multipolar world economy has replaced Western economic hegemony, and the new economies are succeeding in part by leveraging their peculiar cultural traits. This removes any incentive to Westernize and reinforces cultural differences that promote success. A second reason is that modern communication technology, far from homogenizing the world, accentuates cultural difference. These trends heighten the importance of knowing how to operate in diverse business cultures.

The Global Market And Human Rights: Trading Away The Human Rights Principle, Frank J. Garcia

Frank J. Garcia

No abstract provided.

Finding A Jewel: Identity And Gendered Space In Islamic Finance, Karen Ahmed

Karen Hunt Ahmed

In this article, I explore how globalization discourses practices work together to form the identities of female Islamic bankers working in the first stand-alone women’s Islamic bank in Dubai, United Arab Emirates. An Islamic bank interacts with the individual by providing a discursive and physical space in which the subject can shape and respond to her desire to identify and engage with the debates in the global Muslim community about morality, practice and the role of Islam in every day life. Global financial systems and local gender practices are embodied in these buildings in a kind of financial purdah: building …

Homeless Abroad, Homeless At Home: The Conundrum Of Globalisation, Sudhir H. Kale, Sangita De, Robin Pentecost

Sudhir H. Kale

Forces of globalization have brought about profound changes in the way consumers the world over view their identity. For many, consumption becomes one of the key avenues through which they can reterritorialize themselves. Consumption for the purpose of reterritorialization has interesting implications for marketers. Goods and services designed and promoted to restore consumers’ sense of identity will resonate well with today’s deterritorialized consumers. This premise has macromarketing and micromarketing implications.

Has Globalization Increased Australian Inequality?, Noel Gaston, Gulasekaran Rajaguru

Gulasekaran Rajaguru

No abstract provided.

Global Sustainable Values – Video Interviews To Selected Global Leaders, Marco Tavanti

Marco Tavanti

Dr. Tavanti's interviews to selected global leaders exemplifying teaching values on sustainability, human rights, international development, social responsibility and public service

Devin Stewart Interviews Jack Marr On China, Jack Marr, Devin T. Stewart

Jack Marr

Global Competition’S Perfect Storm: Why Business And Labor Cannot Solve Their Problems Alone, Denise M. Rousseau, Rosemary Batt

Rosemary Batt

A perfect storm is a conjoining of forces that intensifies effects. This commentary addresses the economic perfect storm that the United States and many other developed countries face as they attempt to become globally competitive. Its forces conflate strategic change with the erosion of employment and income security as firms shed labor and old institutional arrangements, in turn degrading quality of work and family life for workers as well as the futures of retirees. We evaluate the responses of our commentators—Louis Uchitelle, J.T. Battenberg III, and Thomas Kochan—who assess the current crisis and possible solutions to it. Their responses and …