Yoram Zeira

Women Executives in MNC Subsidiaries

The majority of 111 Host Country Organization managers state that a woman could successfully head an MNC subsidiary, but most had serious reservations. What are the major problems and the implications for MNC personnel policy in selection, training, and assignment?

Generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs): Implications for parent companies

This article develops a model which examines the impact of ten generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs) in the pre- and post-incorporation phases of these entities. These differences address the topics of age, equity ownership, financial risk, goal conflict, negotiation time frame, number of owners, ownership type, secrecy, speed of results and trust. It is proposed that some of these differences will have a greater affect on EIJVs, some on IAs and some on IGIs. Additionally, some differences will be more significant in the pre-incorporation phase of a business venture, while others will have a greater impact during the post-incorporation phase. Based upon the generic differences, each of the business venture forms has inherent advantages and disadvantages over the other forms. In general, it is suggested that corporations will increase their chances to be more successful by understanding the generic differences between EIJVs, IAs and IGIs and by coping effectively with these differences. The article concludes with some more specific recommendations for improved EIJV, IA and IGI performance in both the pre- and post-incorporation stages.

Autonomy and effectiveness of equity international joint ventures (IJVs) in China

Using a sample of 153 equity international joint ventures (IJVs) located in China, this paper examines when autonomy is correlated with IJV effectiveness. Correlations are strongest with respect to autonomy to implement (without power to formulate) strategic business plans. The ability to both formulate and implement strategic business plans is also associated with effectiveness, especially when evaluated by the IJV chief executive officers (CEOs). The autonomy-effectiveness relationship is stronger for IJVs that are older, larger, operating in heavy industry, or have parents with more similar goals. Strong autonomy-effectiveness correlations exist whether IJV CEOs or regional headquarters personnel evaluate their IJVs, although correlations are generally higher when IJV CEOs evaluate their IJVs.

Autonomy and Effectiveness of Equity International Joint Ventures (EIJVs): An Analysis based on EIJVs in Hungary and Britain

The paper utilizes data collected from 34 equity international joint ventures (EIJVs) located in Hungary and 49 EIJVs located in Britain to examine the effects of autonomy on EIJV effectiveness. Study results suggest that for the total sample, permitting an EIJV to develop local HRM policies and to implement business plans independently contribute to EIJV effectiveness. Additionally, there is a positive correlation between EIJV age and effectiveness. When the samples are broken up, the results are consistent except that developing local HRM policies is not a significant factor with respect to EIJV effectiveness in Hungary. The paper contributes to the literature by demonstrating that autonomy is a multidimensional construct and by providing initial support for the development of a theory relating EIJV autonomy to effectiveness based on a hierarchy of autonomy measures. The paper also suggests a model of relative recommended autonomy levels for different EIJV activities.

Parent company dissimilarity and equity international joint venture effectiveness

Based upon existing literature and research findings, the relationships between functional and dysfunctional parent company dissimilarity and equity international joint venture (EIJV) effectiveness are examined. Managers of potential EIJVs face a dilemma. While they want to work with partners that are similar, they need partners that are dissimilar in order to gain from collaborating. The findings of this research are important because they give managers some indications of which kinds of dissimilarities should be avoided because they are dysfunctional and which dissimilarities can be encouraged since they are functional. A cross-national study of 140 EIJVs shows that substantial differences in the primary industries of the parent companies contributed significantly to EIJV effectiveness, whereas substantial differences in the reputations of the parent companies detracted significantly from EIJV effectiveness. Also, cultural differences among the parent companies in individualism-collectivism and in uncertainty avoidance produced a positive impact on EIJV effectiveness. With respect to differences in parent company goals, this study found a consistently negative (although not statistically significant) correlation with EIJV effectiveness. Functionality and dysfunctionality of differences in equity distribution, parent company size, and ownership type were also examined with respect to five common performance measures and a general effectiveness index.

Structural sources of personnel problems in multinational corporations: Third-country nationals☆

The paper examines the extent to which multinational corporations (MNCs) whose staffing policies approach the genuine multinational model are free of the dysfunctions found by the authors in earlier studies of ethnocentric MNCs. The findings are based on comparative research in 51 MNCs, and intensive diagnostic studies of seven subsidiaries of MNCs operating and headquartered in four continents. The findings may be summed up as follows: (1) certain, but very few, morale problems have indeed been eliminated; (2) others are still present; (3) others are still present and their effect has intensified; and (4) new problems have appeared which are unique to the staffing policy approximating to the genuine multinational model. These findings shed new light on several of the assumptions underlying this model. The general conclusion is that each prevalent type of staffing policy has several sources of morale problems--some inherent in its uniqueness, and others shared by the alternative staffing policies--irrespective of the personal qualifications of the managers. Therefore, it is unrealistic to expect that a change toward the genuine multinational model would solve the basic morale problems prevalent in the dominant type of MNCs.

Genuine Multinational Staffing Policy: Expectations And Realities

The article discusses a 1977 study on the staffing policy of U.S. multinational corporations. Results indicated that there are several sources of morale problems existing in multinational corporations of the dominant type. These included blocked promotions, transfer anxieties, income gaps, and unfamiliarity and adaptability difficulties. The research also indicates that the accumulation of variegated international experience is not essentially translated into managerial behavior compatible with environmental needs and headquarters expectations.

Training Expatriates for Managerial Assignments in Japan

This study examines perceptions of exisiting and desired patterns of organizational behavior in MNCs in various countries. The major finding is that despite the numerous differences in organizational behavior patterns between Japan and other nations, four critical managerial patterns are perceived identically by Japanese and non-Japanese employees—leadership, decision making, communication, and group behavior. These findings enable the authors to cite types of training needed for subsidiaries in Japan and for interaction between subsidiaries and their environment.

The function of management development in the process of organisational change

Management development should produce changes in managerial behavior which are consonant with and contributive to the organizations goals and strategies. This paper outlines appropriate training strategy and identifies likely sources of resistance.