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AbstractThis study examines the usefulness of an extended input–output table (EIOT) incorporating the heterogeneity of Japanese firms based on differences in ratios of imported intermediate goods to total output. Using an EIOT, the vertical specialization indicator of Japan was calculated, which corresponds to the foreign value added included in exports. In this process, differences in intermediate input ratios were measured examining different types of firms using firm-level microdata from the Basic Survey of Japanese Business Structure and Activities. The results indicate that distinguishing between exporting and non-exporting firms is relevant for assembly industries such as electronics and automobiles, as widely discussed in the literature. In contrast, for primary materials industries, such as paper, chemical, and metal industries, other distinctions appear to be more relevant. For example, for the chemical industry, wherein firms tend to have large, integrated manufacturing plants, the differences in intermediate import ratios are largest when distinguishing large firms from small and medium firms. For paper and metal industries, which rely on foreign raw materials, the difference is largest when distinguishing between firms with and without foreign affiliates. By incorporating such heterogeneity, the vertical specification indicator increases by 70%; thus, the EIOT captures the foreign value added more comprehensively.

A solid industrial base positively influences society as a whole. Business development is favored by the degree to which companies are active in the market. The article presents an analysis of employment in companies active in the Member States of the European Union. The evolution of the establishment of active enterprises according to their branches of activity is also addressed. Openness to local markets can lead to successful business activities. Cooperation between different companies can also be facilitated by new technologies. From the point of view of mobility, employment in foreign affiliates of domestic enterprises is another subdomain analyzed in the article. The way in which companies approach the field of expenditure can influence their activity. Thus, by increasing technological capacities and promoting innovation, technological development measures lead to the development of enterprises. The article presents an analysis of the way in which expenditure is shared at the level of enterprises in the Member States of the European Union.

Abstract The extension of Shell’s landmark sentence to all the foreign affiliates of multinational enterprises (MNEs) would imply a global emissions reduction of 2.76 GtCO2. Between 28% and 43% of the total 2030 emissions reduction target of not exceeding 2°C would be achieved. While 91% of multinational affiliates’ output belongs to high-income countries, 54% of their emissions occur in low- and middle-income countries. Therefore, these commitments could crucially help emerging countries meet their mitigation targets. We place a special focus on MNEs in the vehicle industry and find that the current targets disclosed in the sustainability reports of the leading automotive MNEs (such as Volkswagen, Toyota, Nissan, and Ford) ignore the upstream emissions of their production, as they consider only scopes 1 and 2. This biased approach would have them reducing only 8%-22% of the required reductions of their upstream emissions if the Shell sentence were to be extended to the automotive industry.

Abstract Foreign direct investment (FDI) in advanced business services (ABSs), referred to here as the offshoring of white-collar jobs, has become one of the major developments in the operations of multinational corporations (MNCs). However, a specific theoretical approach to this phenomenon has not been adequately defined. In this article, we have two objectives. The first objective is to outline the key elements of the theoretical framework and introduce a simple formal model for business services within MNCs. The second objective is to verify the assumptions of the model in the empirical part. We use the sample of the largest European companies having foreign affiliates. Special attention is paid to Visegrád economies (i.e. Czech Republic, Hungary, Poland, and Slovakia) as host economies. We applied here a multinomial logistic model, which indicates the probability of having an ABS subsidiary taking into consideration the characteristics of MNCs.

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.

Purpose The purpose of this paper is to develop an analytical framework to categorize the quality of industrial relations in foreign affiliates. Using the case of foreign affiliates in Germany, this paper further explores what factors shape the quality of industrial relations in foreign affiliates. Design/methodology/approach Given the scarcity of research on industrial relations in foreign affiliates, this paper is based on conceptual work as well as on a comparative case investigation of 21 foreign affiliates in Germany, involving informants from both labor and management. Findings Industrial relations in foreign affiliates in Germany can take four different qualities, based on the following: social partnership; conflict partnership; latently adversarial; and adversarial relations. While previous literature focused on country-of-origin effects, the authors’ case-based investigation further revealed that both affiliate effects and multinational corporation (MNC) effects have a strong impact on the quality of industrial relations in foreign affiliates in Germany. Originality/value This paper provides systematic evidence on the presumption that micro-organizational and MNC-specific factors are necessary to gain a deeper understanding of industrial relations in MNCs. Moreover, this paper contributes to the discussion on the quality of industrial relations in foreign affiliates in Germany, by placing results from both single-case studies and management surveys into perspective.

The research expands existing international business literature by exploring the impact of Foreign Direct Investment (FDI) on domestic banks. It investigates how FDI affects the productivity of domestic banks in Sudan. Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by FDI will spillover to domestic industries and increase their productivity. In contrast with earlier literature that tried to find positive interindustry spillovers from multinationals, this study focuses on effects operating in banking industry. The analysis, based on firm-level data from Sudan , the results show evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local counterparts . The data indicate that productivity spillovers are associated with foreign owned banks.