Turgut Guvenli

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.

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...

Importance of political risk assessment function in U.S. multinational corporations

Abstract A sample of U.S. multinational corporations is selected from Fortune 1000 corporations to study the present political risk assessment function and perceived importance of political risk in the future. The findings suggest that a majority of U.S. corporations are regularly assessing political risk. About half of the corporations are assessing political risk only when the need arises and the remaining corporations have institutionalized the political risk assessment function in their business decision making. U.S. multinationals have also realized that the political environment in the host countries is going to be significantly less friendly in the future.

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.

Multimedia content on the web: problems and prospects

Outlines the technological problems which make it hard to deliver high quality video over the internet, e.g. insufficient bandwidth, clients’ machines etc.; and considers how they might be solved. Describes how digital video, audio presentations and animations can be streamed to a computer and the ways in which various US sectors are actually using streaming media at the moment. Discusses the future for multimedia applications in corporate training, e‐business and higher education; and predicts they will be very widely used as the technology improves.

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.

Perception and Understanding of Bribery in International Business

This study examines attitudes toward bribery in international business and whether such attitudes differ between men and women. Results of surveys of adults studying for careers in international business indicate ambivalent and nuanced attitudes over bribe giving/taking with significant differences by sex with respect to specific hypothetical situations, suggesting a gender gap on matters of bribery. It is recommended that academic curriculum and management development programs stress ethics and legality and focus on the Foreign Corrupt Practices Act and similar antibribery laws so that aspiring managers are properly trained to recognize and manage the challenges prevalent in conducting business internationally.

Global carbon credits and climate exchanges

This study analyses the carbon credits contracts as a market-based mechanism to solve the global environmental problem by offering monetary rewards to countries and corporations that are low greenhouse emitters and putting economic pressure on those that are high greenhouse emitters. The mechanism is a by-product of the Kyoto Protocol which came into effect on February 16, 2005. There are two functioning climate exchanges that are exclusively trading carbon contracts, and at least another four climate exchanges plan to offer carbon contracts in the near future. Finally, this study discusses some of the present and future programs to reduce greenhouse gas emission and suggests additional solutions.

Personnel Selection Practices in a Comparative Setting

Abstract Managers in Israel, Slovenia, and the U.S.A. were surveyed to determine similarities and differences in their propensity to use particular personnel selection techniques. The interview and reference/background checks are the most common methods of selecting employees in the three countries. However, there are differences in usage based on firm size, nature of industry, and country-specific conditions. Israeli firms are more likely to use a comprehensive battery of tests to select employees while Slovenian firms rarely use drug/alcohol testing, assessment centers, or headhunters. Psychological exams and assessment centers are less common in the U.S.A. The implications of the findings for international firms are discussed in the context of the global convergence-divergence construct of human resource practices.