Communications between Managers of Manufacturing Units of Multinational Corporations
Purpose The paper identifies the factors that shape the intensity and perceived effectiveness of communications between heads of manufacturing units of multinational corporations (MNCs).
Design/methodology/approach The paper is based on a survey of heads of MNCs’ manufacturing subsidiaries in Russia.
Findings We found that the intensity of most inter-unit communication channels depends on the speed and magnitude of the changes experienced by manufacturing subsidiaries in products and production technologies. The assessment of the efficiency of a communication channel with high media richness strongly correlates to the intensity of its use.
Practical implications Subsidiary managers are quickly mastering most easy-to-use channels (i.e., e-mail exchange, talking on the phone, reading corporate magazines) by themselves, but are minimizing their participation in time-consuming activities (i.e., corporate-wide and special conferences, arranging informal meetings with foreign peers) unless they have to manage rapid changes in products and production technologies. Thus, to intensify the voluntary use of inter-unit channels with high media richness, headquarters should instill in subsidiary managers the value of cooperation between manufacturing units. Moreover, the effectiveness of inter-unit channels with high media richness should be properly demonstrated to subsidiary managers to assuage their initial reluctance.
Originality/value This paper presents communications between manufacturing units of multinational corporations not as the transfer of abstract knowledge but as routine processes of exchange of detailed information on valuable improvements of the existing practices and solutions to technical and organizational problems common in facility development and mastering new products.
This paper reports on a study of formal opening ceremonies of new plants of multinational corporations in Russia. We argue that such ceremonies have profound symbolic meanings, namely “managing anxiety” and “signaling commitment,” as well as practical importance, particularly when top executives of corporate parents meet with top officials from the host countries at such ceremonies. The database embraces the entire population of public opening ceremonies of new plants of western multinational corporations (MNCs) in Russia from 2012 to 2016. The analysis revealed that, in 2016, the unwillingness of both corporate CEOs and local governors to participate in plant opening ceremonies began to increase. More than one-third of plant opening ceremonies in 2016 were “low-profile ceremonies” ignored by top officials from corporate parents and local authorities from host the country. The absence of corporate executives can indicate top corporate executives’ decreased commitment to new industrial projects in Russia. The growing absence of local governors is attributed to the smaller size of newly opened plants and the impact of sanctions imposed on Russia by the US and European Union following the inclusion of Crimea into Russia in 2014. A spectacular increase in the share of “low-profile opening ceremonies” evidenced in the data can also signal that a significant number of MNCs in Russia are adopting “low-profile” strategies when CEOs do not wish to be associated with projects with unclear timing of positive cash flow and increasing difficulties of value appropriation. This paper also indicates a promising direction for further studies—a replication study that should embrace public opening ceremonies of new plants of foreign MNCs in China, India, and Brazil—large countries with solid populations of foreign-owned manufacturing plants.
Current economic conditions are forcing market players to bring new products to consumers rapidly, maintaining the high quality and providing the reasonable price. The concept of ramp-up management is designed to meet this request. The implementation of this concept in practice, in particular for Russian industrial enterprises, causes certain challenges. Correspondingly the quality of enterprise management becomes a factor that appreciably influences the ramp-up execution. In this regard, the study designed to develop the theoretical provision and methodological approach towards the assessment of the management quality is viewed as relevant to the practical needs of enterprises during the ramp-up and technological re-equipment.
In the present article we propose a conceptual approach to assess the quality of enterprise management on the basis of value chain methodology which is relevant to the conditions of ramp-up preparation and implementation. By the “quality of management” notion in the study it is proposed to understand the totality of objectively existing properties and characteristics of enterprise management system which adequately reflects all aspects of its activities and contributes to the efficiency of enterprises development and competitiveness.
The author analyzes the most widely applied risk management standards in Russia, emphasizing the lack of a clear system for operational risk management. Reviewing the challenges emerging on European markets due to the introduction of the Solvency II directive, he suggests approaches to the solution of possible problems for Russian insurers.
портовый менеджмент, показатели деятельности, анализ эффективности, система учета, распределение издержек, методы анализа деятельности портовой системы
At present many industries reveal tendency for setting up of vertically integrated companies (VIC) the structure of which unites all technological processes. This tendency proved its efficiency in oil industry where coordination of all successive stages of technological process, namely, oil prospecting and production -oil transportation - oil processing - oil chemistry - oil products and oil chemicals marketing, is necessary. The article considers specific features of introduction of "personnel management" module at enterprises of oil and gas industry.
vertically integrated companies; personnel management