Corporate Foresight in the Strategy of Multinationals
Operations and related investment in the oil and gas industry are typically of a long-term nature with a technology that is characterized by high capital intensity. Corporate foresight activities are important in detecting upcoming challenges and developments but also in reflecting the appropriateness of existing procedural routines and organizational structures in this changing environment. The complicated nature of organizing tenders requires creating new means and instruments such as intelligent information systems, which can be designed to improve the choice efficiency and reduce the term of decision making.
Foresight has been applied by many companies for long time under different names and titles. Frequently foresight is integrated in company corporate strategies although not always called ‘foresight’. The chapter proposes a conceptual model of corporate foresight. This framework is based on a comprehensive analysis of theoretical and practical company experiences with corporate foresight. The model allows harmonizing results of corporate foresight with strategies at different levels, namely government, regional and industry which can be employed both by internal and external users.
Russian multinational enterprises (MNE) expanded widely in the late 1990s through the summer of 2008 at the onset of the global financial crisis of 2008. The emerging market MNEs have now become a subject of intensive study with a particular focus on the actions and behaviors of firms from Brazil, Russia, India, China, and South Africa (BRICS). This paper attempts to flesh out the reputational and corporate social responsibility (CSR) aspects of this internationalization process. The paper finds that in select cases the reputation of a Russia MNE does play a role in their activities and that these emergent firms recognize host country stakeholders as an audience for concern when conducting OFDI.
During the last two decades corporate international diversification became a widely used growth strategy. However, the majority of scientific researches insist on its value-destroying pattern. Those of them which were based on accounting studies’ methodology and used current performance measures are likely to make an incomplete evaluation of corporate performance by accounting either for operating performance or financial (cost of capital) effects of internationalization. The current paper proposes a new approach for estimation of internalization-performance relationship which is based on economic profit concept. It allows to control simultaneously both operating and financial effects of internationalization on the firms’ current performance. The proposed model has been empirically tested on a sample of large companies from one of emerging economies - Russia. The results identify a non-linear U-shape relationship between a degree of internationalization and companies’ residual income (economic profit). The relationship is mainly determined by operating performance effects on economic profit while cost of capital has a modest effect. Overall for the majority of companies international diversification refers to decrease in economic profit. The results are compared against the Q-Tobin measure which incorporates expectations about future performance. A joint analysis of current performance (economic profit) and long-term performance (Q-Tobin) allows to expect the internationalization benefits to be realized in future. As an implication of the present research for corporate decision makers it may be stated that at the initial level of international diversification the internationalization decisions should be made with a high degree of caution. There should be a clear internationalization strategy based on definite mechanisms of performance improvement. The prestige and other irrational motives which may lead to the value destruction should be pruned.
International May Conference on Strategic Management (IMCSM) is a leading international conference in the field of general management. This conference is annually organized by Management Department of Technical Faculty in Bor, University of Belgrade. This was 15th year of the conference.The May Conference on Strategic Management become recognizable in the world due to its quality, especially in Central and Southeast Europe.
The extant literature acknowledges the role of overseas subsidiaries in the growth and development of multinational companies (MNCs). Such subsidiaries are viewed as critical players in the innovation process at MNCs. This topic remains largely underresearched in the Russian context. This study aims to fill this gap by examining the dynamics of the innovation process in Russianbased subsidiaries of global MNCs. We present qualitative findings that indicate Russian subsidiaries are not only recipients of knowledge and technology developed elsewhere in the MNCs.
This report presents the recent development of manufcaturing subsidiaries of multinational corporations in Russia and indicates some promising opportunities of their development.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.