MBA Dissertation Sample on Globalization
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2.3 C<strong>on</strong>ceptual Forces that Drive Operati<strong>on</strong>s of Multinati<strong>on</strong>al Corporati<strong>on</strong>s and How<br />
Globalizati<strong>on</strong> Support this Operati<strong>on</strong>s<br />
According to Mujih (2012), multinati<strong>on</strong>al firms are organizati<strong>on</strong>s that are engaged in<br />
foreign operati<strong>on</strong>s which are owned by citizens of <strong>on</strong>e country but have multiple<br />
branches in foreign lands. It is added that these branches are either wholly or partly<br />
c<strong>on</strong>trolled by the nati<strong>on</strong>als in the home country. These c<strong>on</strong>trols are said to be<br />
management of income generating activities.<br />
Gullen & Garcia-Canal (2010) observes that in today’s increasing competiti<strong>on</strong> in the<br />
global business envir<strong>on</strong>ment, multinati<strong>on</strong>al corporati<strong>on</strong>s are becoming many and<br />
whose home countries are the least globalized. That is, those which are in the process<br />
of developing. In these foreign lands, they operate as joint ventures, alliances or fully<br />
owned branches (1). Akintunde (2008) recalls that a firm becomes internati<strong>on</strong>al when<br />
its business operati<strong>on</strong>s are bey<strong>on</strong>d its nati<strong>on</strong>al borders. These operati<strong>on</strong>s listed to<br />
include producti<strong>on</strong>, staffing, marketing, financing, and others (39).<br />
Thuomrungroje (2004) informs that business opportunities and threats in the global<br />
envir<strong>on</strong>ment are the c<strong>on</strong>sequences of globalizati<strong>on</strong>. These business opportunities are<br />
said to be those that create market and investment potentials and accessibility of<br />
resources. Thus, Thuomrungroje (2004) c<strong>on</strong>firms that globalizati<strong>on</strong> influences the<br />
operati<strong>on</strong>s of multinati<strong>on</strong>al firms and their performance is enhanced through increase<br />
in globalizati<strong>on</strong> (v).<br />
Existing ec<strong>on</strong>omic literatures <strong>on</strong> innovati<strong>on</strong> c<strong>on</strong>cepts are seen to have focused <strong>on</strong> the<br />
c<strong>on</strong>tributi<strong>on</strong>s of globalizati<strong>on</strong> in terms of the mechanism employed and the extent in<br />
which they are used. It is collated that these literatures c<strong>on</strong>vey that much of these<br />
mechanisms have involved c<strong>on</strong>ducting research and development studies <strong>on</strong><br />
business opportunities outside home countries, increase in technological and<br />
knowledge transfers, availability of coordinated labor migrati<strong>on</strong>, and spread of<br />
research and development activities across the globe (Fifarek, 2007: 1).<br />
Fifarek (2007) further explains that the idea of spreading research and development<br />
facilities across the globe was to motivate globalizati<strong>on</strong> processes. That is, identifying<br />
locati<strong>on</strong> advantages in foreign lands for the purposes of maximizing their unique<br />
resources using extraordinary capabilities of foreign investors. Thus, under<br />
globalizati<strong>on</strong>, research and development activities are found to be centralized<br />
functi<strong>on</strong>s of business investors. It is also documented that these activities are<br />
perceived as knowledge seeking techniques of finding resources that are beneficial to<br />
the operati<strong>on</strong>s and objectives of a foreign firm.<br />
These resources are said to be inform of technological capacities, infrastructures,<br />
human resources, factors of producti<strong>on</strong> and many others which are not accessible in<br />
the local business envir<strong>on</strong>ment. This in the process enables the foreign investors to<br />
establish new capabilities and resources which expand their business operati<strong>on</strong>s (1).