This thesis examines and explains multinational employers' experiences of localized shortages of skilled process workers in Suzhou Industrial Park (SIP), China. It explains three challenges facing SIP employers in accessing sufficient skilled process workers and their responses within HRM to such challenges. These three challenges are employers' experiences with vocational education and training (VET) deficiencies in students' skill development, employers' experiences of poaching of skilled process workers by other companies, and employers' experiences of provision of workplace training for skilled process workers in their own companies. In response to these challenges, SIP employers have adopted various HRM measures that include differing combination of recruitment and selection, employee retention, training and development, and employment relations management. These policies and practices represent the different ways that SIP employers have attempted to meet the challenges of localized skill shortages in the context of their own business strategies.

Abstract: In our globalized world companies that want to internationalize and go to a new market should consider different factors, if they want to be successful. Institutional adaptation is a vital part of success or failure of the globalization process. The market entry process of western Multinational Companies (MNCs) into China, shows different adapting processes, compared to when entering western country markets. Establishing an MNC in China is more time consuming, as a lot of social and non-business actors, and activities will be involved in the process. Purpose - The purpose of this study is to explore the process of adaptation of western MNCs to eastern institutional environment, with a focus on China. How does western MNCs operating in China adapt to the eastern institutional environment of China?   Method - This is a qualitative single case study with three interviews as primary sources of data. Findings – Government mandates are key factors to any organization whether local or otherwise. Merging with a local company helps to adapt better to the new environment. General cultural norms have a higher impact into the adaptation process. Conclusion - The research conducted shows how having knowledge of the different aspects of the environment and knowing how to adapt to these differences is crucial for the success of a firm. Husqvarna Group adapts to the host environment by means of their code of conduct, adaptation of a foreign organizational structure and accepting stricter mandates put forth by the government along with stricter channels of communication.

Two literatures exist concerning cross-border merger activity's impact on domestic wages: one focusing on positive spillover-effects; the other focusing on negative bargaining-effects. Motivated by scarce theoretical scholarship spanning these literatures, we nest both mechanisms in a single conceptual framework. Considering the separate phenomena of inward and outward cross-border merger activity, our theoretical model generates three formal propositions: cross-border mergers can lead to wage increases via positive spillover-effects; and negative bargaining-effects are relatively more dominant when union market power is high, and when merging firms exhibit relatedness. Employing US firm-level panel data on wages combined with industry-level data on unionization and merger activity (covering 1989-2001), we find support for our propositions as inward and outward cross-border merger activity generate positive spillovers to wages, but are more likely to generate firm-level wage decreases when unionization rates are high and when cross-border merger activity is characterized as horizontal. Accordingly, future research on how cross-border mergers affect domestic wages should be mindful that both spillover and bargaining effects are at play, and that the degree of union market-power and the relatedness of cross-border merger activity are critical in determining which effect dominates. (authors' abstract)

This paper proposes an agency model for headquarters subsidiary relationships in multinational organizations with headquarters as the principal and the subsidiary as the agent. As a departure from classical agency theory, our model is developed for the unit level of analysis and considers two root causes of the agency problem - self-interest and bounded rationality. We argue that in the organizational setting, one cannot assume absolute self-interest and perfect rationality of agents (subsidiaries) but should allow them to vary. We explain subsidiary level variation through a set of internal organizational and external social conditions in which the headquarters-subsidiary agency dyad is embedded. We then discuss several agency scenarios reflecting various levels of selfinterest and rationality that lead to different manifestations of the agency problem. The proposed framework can inform more relevant applications of the agency perspective in organizational studies and motivate future research.

Foreign direct investment (FDI) is a source that improves the competiveness of the host country which can be further utilised to develop the country’s own resources and capabilities. In addition, non-affiliated local firms that do not have a foreign partner improve their performance due to the spillover effects gained either through the sharing of resources, learnings or due to the increase in competition. As such, FDI is seen as an important economic growth driver in developing economies since these economies struggle to compete in the global economy.The objective of this research is to determine whether foreign ownership in a developing economy is beneficial in terms of national competiveness; reducing the income gaps; improving employment opportunities; improving the financial performance of an acquired local firm and if the foreign parent introduces new technologies into the economy. Due to the mining- and manufacturing sector being the main recipients of FDI in South Africa and both having similar operations specifically being high capital and labour intensive, these sectors were chosen for the purpose of this research. The data sample was analysed using multiple regression as it is a flexible method of data analysis that may be appropriate whenever a quantitative dependent variable needs to be examined to find a relationship with two or more independent or explanatory variables.The results indicate significant benefits for the host economy in attracting FDI into the country. The benefits seemingly outweigh the costs and the presence of Multinational Corporations (MNCs) in South Africa will help it in elevating some of the socio-economic challengers like high unemployment rate and the shortage of skills through resource sharing with the MNCs. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Au vue de la concurrence internationale qui s’est accrue avec l’évolution des pays émergents, les chaînes de production des FMN suivent des schémas de plus en plus complexes. L’objectif de cette thèse est d’étudier les stratégies de SIPP opérées par les FMN. Le chapitre 1 établie les manquements des travaux relatifs à la fragmentation internationale des processus de production qui sont en majorité des études ‘pays’ et ne sont plus en accord avec les changements relatifs au monde industriel actuel. La SIPP y est définie. Dans le chapitre 2, nous construisons un modèle d’équilibre partiel à une seule firme afin de trouver les principaux éléments qui déterminent la SIPP et de montrer les différentes stratégies par lesquelles les FMN segmentent leur processus de production. Dans le chapitre 3, nous construisons quatre nouveaux indices de mesure de la SIPP et faisons des études descriptives relatives. Le chapitre 4 vérifie et complète les résultats obtenus dans les chapitres précédents via une étude économétrique. Il ressort que la SIPP allie les théories traditionnelles et les nouvelles logiques relatives à la fragmentation internationale ; les contraintes ou avantages liés conjointement à la firme et aux pays déterminent le choix de segmenter ou pas son processus de production via des stratégies mixtes et/ou verticales. La SIPP ne se résume plus seulement à l’association des FMN occidentales donneuses d’ordre à des fournisseurs de pays à faible coûts de main d’œuvre. L’accès à des marchés étrangers et à des savoirs et compétences spécifiques est de plus en plus ciblé. Les stratégies ont beaucoup évolué et le niveau des pays aussi. / In a context of rude international competition with the rise of emerging countries, the production chain of MNCs becomes more complex. The objective of this thesis is to study the strategies of ISPP carried out by the MNCs. The first chapter establishes the shortcomings of works on the international fragmentation of production processes, which are mostly ‘country’ based studies and are no longer in line with changes of the current industrial world. In this chapter, the ISPP is defined. In Chapter 2, we build a partial equilibrium model to a single firm (the MNC) in order to find the main elements that determine ISPP and to show the different strategies by which MNCs segment their production process. In Chapter 3, we construct four new ISPP measurement indices and conduct relative descriptive studies. Chapter 4 verifies and complements the results obtained in the previous chapters, using two econometric models based on the French MNCs data and those relating to the countries where they have production activities. It appears that the ISPP combines the traditional theories and the new logics relating to international fragmentation; the constraints or advantages related to the firm and countries determine the choice of the firm to segment or not its production process via mixed or/and vertical strategies. Today, international fragmentation of production is no longer just a matter of the association of western multinational companies with suppliers of countries with low labor costs. Access to foreign markets, to a specific knowledge and skills are increasingly targeted. The strategies have evolved greatly and the level of countries too.

Background: Cultural differences provide challenges for multinational corporations, due to the differences in norms, values, and beliefs accompanying national cultures. Multinational corporations must adapt to the new environment to achieve optimal performance and attain competitive advantages. One of these challenges is motivation, which is crucial for employee performance and hence the pursuit of competitive advantage. Vietnam and Sweden, two cultural contexts having remarkable cultural distances, are the specific focus of this study.    Purpose: This study aims to explain the effect cultural differences have on job motivation and satisfaction. The authors investigated six motivation factors deemed to lead to job satisfaction based on Herzberg’s Two-Factor theory. The study’s framework is constructed also by four cultural distance factors according to Hofstede's Cultural Dimensions Theory to test the moderation effect of cultural differences on the relationship between motivation and job satisfaction.    Method: A quantitative research was conducted on a sample of 79 employees from two MNCs: Samsung in Vietnam and Husqvarna in Sweden. An online survey was distributed to respondents to gather primary quantitative data. The survey questions were based on previous studies to ensure validity in measuring the scales. Finally, two main testing analyses namely multiple linear regression and moderation effect were undertaken in SPSS.   Conclusion: The satisfying motivation factors included in Herzberg’s Two-Factor theory correlated positively to employees’ job satisfaction in both countries, although it was evident that each of the six factors contribute to job satisfaction at varying degrees. Furthermore, the finding of the culture dimensions as moderator variables showed that different levels of culture factors could either weaken, strengthen, or had no effect on the relationship between employee satisfaction and the six motivation factors.

Background: Since the Go Global policy in 1999, Chinese firms have been growing and expanding exponentially in the global market. The internationalisation of Chinese firms has attracted not only business partners, policy makers but also researchers with their unconventional process and method. The problem occurs when Chinese brands are facing challenges in brand awareness and equity in foreign markets despite their strong presence domestically. One industry stands out as the most relevant example – the apparel industry – since China has been the largest exporter and importer of clothes worldwide yet Chinese brands are hardly recognised internationally. Among all, ANTA, one of the largest multinational companies (MNCs) operating in the sportswear industry, raises high interest for a case study with their rapid international expansion and their new global strategy. Purpose: This paper aims to examine the process of internationalisation and brand internationalisation of Chinese MNCs through the case of ANTA. This paper also wishes to contribute to the lack of study in the stream of literature regarding Chinese market cultivation post-entry to a new oversea markets and brand internationalisation. Method: A qualitative research was conducted through an exploratory approach. In-depth interviews were utilised for primary data collection in which 6 employees from different positions under ANTA agreed to become participants. A thematic analysis was then carried out. Secondary data about ANTA and their activities and strategies was also collected in order to use in combination with the empirical findings from the interviews. Lastly, an analysis of all the data based on the relevant literature was conducted. Conclusion: ANTA’s internationalisation process was found to be in line with past studies where acquisition is the preferable method. Several reasons were discussed for this choice of entry mode including the macro and firm factors. Following this, the choice of multi-brand strategy was fitting as it enables firms to leverage the acquired assets such as brand names, product lines, markets, capabilities and technology to diminish problems like low product range, lack R&D and technology and ownership disadvantages. However, potential challenges may also occur such as low brand equity and short-term orientated strategy that cannot be solved through rapid expansion and capital utilisation.

The intense competition arising from globalisation requires MNCs to manage their HRs globally and strategically to become a source of competitive advantage. Hence, SIHRM acknowledges the need to balance global integration and local responsiveness, together with emphasising the importance of seeking strategic fit between HR policies and business strategy, which in turn leads to superior firm performance. Furthermore, this development also increased awareness and recognition of the role of senior managers and cultural traditions. Therefore, the primary purpose of this research was to explore the relationship between SIHRM effectiveness and firm performance as perceived by senior management coupled with the influence from MNCs' headquarters and Chinese cultural values. Consequently, the researcher selected a case study approach with a triangulation data collection method through questionnaires and semi-structured interviews undertaken in four selected subsidiaries of MNCs. The research findings strengthened the theoretical foundations of several HRM models, together with supporting Analoui's eight-parameter approach (1999) as a functional, coherent and interlinked framework regarding the effectiveness of senior managers. In particular, this research found that quality enhancement of products and service was the preferred and adopted key business strategy amongst the studied MNCs. Whilst they are also seeking to balance globalisation and localisation through reconciling control and adaptation rather than satisfying one at the expense of the other, such that the trend is for Western HR policies to be gradually accepted and internalised by the younger generation of the Chinese managers. Finally, this research made several recommendations to foreign MNCs operating in China.

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