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Researching international business in developing countries: some lessons

Researching international business in developing countries: some lessons. Frederick B. Bird, Concordia University, Montréal Emmanuel Raufflet, HEC Montréal. Scope and character of research. 50 + firms in developing areas in 20 countries Research was descriptive, analytical, and normative.

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Researching international business in developing countries: some lessons

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  1. Researching international business in developing countries: some lessons Frederick B. Bird, Concordia University, Montréal Emmanuel Raufflet, HEC Montréal

  2. Scope and character of research 50 + firms in developing areas in 20 countries Research was descriptive, analytical, and normative

  3. Focus of Research • Impact of International Businesses on Developing Areas • Especially focus on their impact on economic development and poverty reduction in these areas • The diversity of areas both with respect to local cultural values and normative expectations and levels of economic developoment

  4. Preliminary Finding: Dilemmas of Development • All firms faced a range of generic moral dilemmas for which there was no simple right/wrong solution • Regarding: questionable payments, management of security, worker motivation, fractured development, community relations, etc. • Need: To exercise judgment; utility of minimal standards

  5. Basic point of reference: To what extent and in what ways does the firm add/deplete economic value? • Financial assets (wages, taxes, savings, credit) • Productive assets (incl. phys & econom infrastr) • Human assets (skills, training) • Social assets (trust, social coop or discord, etc) • Natural assets

  6. Ancillary Points of Reference: Governance and fair Exchange • In relation to its stakeholders: Are these exchanges mutually beneficial? • Are the communications reciprocal? And collaborative? In what ways? • Are stakeholders adequately and effectively represented in relevant decision-making structures?

  7. Factors that make a difference, I • Basic strategy of firm: Asset development or cost –minimization • Backward integration; help with infrastructural developments • Public policies and public capacity (effective legislation; governmental capacity to regulate; autocratic govts, etc) • Civil society organizations (role of NGOs, labor groups, in N & S; industrial assoc)

  8. Factors that make a difference, II • Initiatives and leadership by individuals • Concern with reputation

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