Rajib N. Sanyal

Relations between multinational firms and host governments: the experience of American-owned firms in China

A survey of managers of American firms in China indicates that they have been able to maintain good relationships with the Chinese government; this is particularly true for larger firms. Statistical results suggest that government interference in the operations of the subsidiary is generally minimal though it is greater in the case of joint ventures as compared to wholly owned firms. The performance of the subsidiary is influenced by the quality of the relationship with the host government. Implications for managers of foreign firms are discussed.

An Experiential Approach to Teaching Ethics in International Business

Ethics training in academia and corporations have grown as expansion in international business activities has lead to frequent inter-cultural exchanges. An effective instructional tool in theform of an experiential exercise is presented. The exercise using role-playing enables participants to recognize, confront, and understand business quandaries. A scoring system allows participants to compare the ethical standards of employers, employees, customers, and the society-at-large on a set of predetermined ethical events.

The valdez principles: Implications for corporate social responsibility

The Valdez Principles have been formulated to guide and evaluate corporate conduct towards the environment. While at first glance the code appears to impose enormous new responsibilities on firms, a closer analysis indicates that existing regulations and business practices already require businesses to meet many of the environmental goals sought by its proponents. Likely corporate response to the code is examined against this background and with reference to the experience with other voluntary codes of conduct. It would appear that compliance with the code will yield minimal benefits and non-compliance will impose minimum costs for the environmentally-responsible firm.

The propensity to bribe in international business: the relevance of cultural variables

Purpose – This paper seeks to examine the extent to which national cultural characteristics impact the propensity of firms based in the country to engage in bribery to gain advantages when conducting business overseas.Design/methodology/approach – A set of statistical analyses – bivariate correlations and regression – was performed on data for five cultural variables and one economic variable for 30 countries to ascertain the relationship between these variables on a countrys Bribe Payers Index, a measure of bribe giving.Findings – The results indicate that firms from countries low on power distance or long‐term orientation, or high on individualism, are less likely to engage in bribe giving. However, when the level of economic development in the home country as measured by per capita income is included, the impact of cultural factors is muted considerably. Firms from high‐income countries are less likely to give bribes.Research limitations/implications – Richer countries are likely to have certain pract...

Correlates of bribe giving in international business

Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries where bribe taking is highly prevalent and those countries that are most likely to offer bribes. The propensity to give bribes is determined by economic factors such as per capita income and degree of economic freedom in the country, cultural factors such as power distance and masculinity; and legal regulatory factors such as accounting and tax treatment of bribes. It appears that, to eliminate international bribery, the supply side needs to be addressed in addition to the demand for bribes.

Perception of managerial characteristics and organizational performance: comparative evidence from Israel, Slovenia, and the USA

A survey of managers in Israel, Slovenia, and the USA finds a marked similarity with respect to the characteristics and abilities managers need to contribute to organizational success. Factors such as decision making ability, communication skills, commitment to organizational goals, ability to choose the right persons in key persons and ability to delegate are considered to be very important although there are differences with respect to the degree of their importance. Several managerial characteristics are also found to be significantly correlated with the firm’s financial success and employee morale. The findings are framed in the context of convergence‐divergence hypothesis as it applies to the internationalization of management practices.

Effect of perception of corruption on outward US Foreign Direct Investment

US Foreign Direct Investment (FDI) outflows are examined with respect to the level of corruption – in the form of bribery – in 42 recipient countries over a five-year period. Analysis indicates that US firms are less likely to invest in countries where bribery, as measured by the Corruption Perceptions Index (CPI), is widespread. However, the size of the foreign market is found to be a more robust factor determining US outward investment, with larger economies attracting more investment. The level of bribery, while significant by itself, loses its importance when included with other economic and cultural variables. The findings are discussed in the context of the Foreign Corrupt Practices Act (FCPA), which makes it illegal for US firms to bribe foreign officials to obtain business advantages.

The Capstone Course in Business Programs: Teaching the Application of International Business Research Skills.

ABSTRACT An empirically based international business research project as a component in the capstone course in undergraduate business program can serve as an effective and integrative learning and teaching tool. Initiated and supervised by the instructor, conducted and completed by the students, the research project enables students working collaboratively to apply their statistical skills to understand how international business knowledge is created and evaluated. A prototype research project is presented to illustrate this approach. Pedagogical implications are discussed in terms of course rigor, effective use of classroom time, and applicability in other settings.

Perception and management of legal issues in China by US firms

Abstract A survey of senior managers of American-owned firms in China about their experience with China’s legal system and with intellectual property rights violations indicates that none of them found the system efficient and few found it fair. Chinese business ethical standards were perceived to be lower than in the US. Certain types of firms and business strategies were more prone to product piracy and patent violations. A variety of methods were used to address them. Foreign managers with experience in China have insights into the functioning of the legal system and are more satisfied with it than less experienced managers.

Ethical Concerns in International Business: Are Some Issues More Important than Others?

F irms expanding into international business have had to contend with ethical and social dilemmas brought on by differences in economic conditions, cultural values, and competitive variables. In recent years, as economic activities have become more globally integrated, concern has been expressed over ethical practices in various countries and the role of multinational firms in making profits through conduct considered inappropriate. Thanks to the activism of nongovernmental organizations (NGOs) and advancements in communication such as television, telephone, and the World Wide Web, the general public, especially in advanced industrial countries such as the United States, are now aware and conscious of economic, social, and political conditions elsewhere in the world. In this article we ascertain and rank the U.S. public’s concern over a set of ethical issues in international business.