The Multinational Corporation in the Less Developed Country: The Economic Development Model versus the North-South Model

Paul, Karen; Barbato, Robert

doi:10.2307/258206

Cited by 5 publications

(4 citation statements)

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“…The relationship between multinational corporations (MNCs) and community development in developing countries has traditionally been a subject of intense disagreements and debates within development studies (see Paul & Barbato, 1985). However, since the late 1990s, the gradual shift in the reconceptualization of business–society relationship from business and society (i.e., a collateral system) to business in society (i.e., an interpenetrating system) has offered new spaces for the thinking about the roles of MNCs in fostering or undermining development within poor countries.…”

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confidence: 99%

Corporate Innovation and Sustainable Community Development in Developing Countries

2012

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The role of multinational corporations (MNCs) in fostering or undermining development within poor communities in developing countries has been a subject of intensive debate within academic and practitioner circles. MNCs are not only considered an obstacle to development but also as sources of solutions to some of the pressing social and environmental problems facing these communities. This article reviews the way in which companies frame (a) sustainable community development, and (b) their engagements in the community. It then considers the implications of both for sustainable community development and poverty alleviation in developing countries. The article then proposes an agenda for future research centering on how corporations innovate in their governance roles and the conditions in which community development innovations are created, take shape, and are put into practice. The article concludes with an introduction to the other articles presented in this special issue highlighting also their main contributions.

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confidence: 99%

Corporate Innovation and Sustainable Community Development in Developing Countries

2012

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“…As social requirements are increasing, there is a growing awareness of the idea that organisations making profit from resources of the country must redistribute it locally and are responsible for the living standard of the workers and their families [70]. This phenomenon is even more accentuated for companies operating in the Southern countries where state institutions are often malfunctioning [71]. Hence, the CSDA method is implemented with and for the value chain actors, giving the opportunity to the company to address their responsibility by limiting their negative social impacts and focusing their CSR actions on the real social service needs of households.…”

Section: Discussionmentioning

confidence: 99%

How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries

et al. 2022

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(1) Background: In Southern countries, companies that employ a large number of workers are concerned with poverty reduction, which is the priority of their CSR policy. The banana sector has made great efforts to calculate a “living wage”, but this is not sufficient. How do we assess a decent living standard in Southern countries, where basic social needs are rarely covered by the public authorities? (2) Methods: the selection and analysis of the living standard assessment methods are based on a systematic review of the literature. (3) Results: We selected 427 references in total and classified them into 10 method families. Among them, we have not found a ready-to-use method. The paper therefore suggests an innovative methodology (CSDA) inspired by Townsend’s non-monetary deprivation score and by the importance of social norms and ties. Instead of using a list of goods to define a decent living standard, the new method relies on access to services proven to be important for public health by covering social needs. Moreover, this method is easy to implement for the private sector, highlights the priority social needs for workers on which the company can act with its CSR policy, and allows for cross-country comparison. (4) Conclusions: This last point is crucial for the producers’ commercial negotiations with large-scale distribution and also to prevent the flight of workers to other activities or competitors. With regard to poverty alleviation, it will depend on how the company uses the results of the CSDA assessment.

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“…1, thus leading to instability and eventual crises-the one obvious, the other subtle. The obvious type of crisis (beyond C,) occurs when change due to technology transfer leads a socio-economic system into political instability, high unemployment rates and a poor standard of living or quality of life (Gee, 1981; Madu, 1988; Paul and Barbato, 1985; Rodrigues, 1985). The subtle type of crisis (beyond C,) occurs when 'the technological good fairy is expected to solve all of a country's problems including those for which she is responsible' (Godet, 1987, p. 9).…”

Section: World View Diversity Change and Levels Of Technologymentioning

confidence: 99%

“…To compete effectively, multi-national enterprises (MNEs) must establish market presence in their global rivals' home courts and/or profit sanctuaries (Kim and Mauborgne, 1988; Paul and Barbato, 1985; Prahalad and Doz, 1987). By so doing, MNEs can:…”

Section: Introductionmentioning

confidence: 99%

MNE competitiveness: A scenario‐driven technology transfer construct

Georgantzas

1991

Manage Decis Econ

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To compete effectively, multi‐national enterprises (MNEs) must establish market presence in their global rivals' home courts and/or profit sanctuaries. Technology transfer is often used as a means toward that end. The technology adoption decisions of an aggressor MNE and a defender MNE are investigated in a model that features indirect moves and changes in strategy through technology transfer. Each firm may adopt a strategy that incorporates the transfer of high technology or appropriate technology. The strategic decision situation is modelled as a closed‐loop sequential equilibrium in discrete time. In contrast to results in the technology adoption literature, the aggressor MNE may successfully transfer technology first, to be imitated later by the defender MNE. This and several other scenarios emerge from the model which, by incorporating the cost of social adjustment and risks involved in technology transfer, ties technology to the competitive interaction of MNEs and specifies conditions for creating competitive advantage through technology, both locally and worldwide.

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The Multinational Corporation in the Less Developed Country: The Economic Development Model versus the North-South Model

Cited by 5 publications

References 0 publications

Corporate Innovation and Sustainable Community Development in Developing Countries

Corporate Innovation and Sustainable Community Development in Developing Countries

How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries

MNE competitiveness: A scenario‐driven technology transfer construct

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