Global Business in Local Culture - The Impact of Embedded Multinational Enterprises

von: Philipp Aerni

Springer-Verlag, 2018

ISBN: 9783030037987 , 132 Seiten

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Global Business in Local Culture - The Impact of Embedded Multinational Enterprises


 

Preface

6

Contents

11

Acronyms

14

1 Introduction

16

1.1 Karl Polanyi’s Influence in the Globalization Debate of the 21st Century

18

1.2 The Bipolar Mindset in Academia, Civil Society and Government

19

1.3 Acknowledging the Value of Companies Committed to ‘Principled Embeddedness’

21

1.4 When MNEs Become Part of the Solution Rather Than Part of the Problem

23

1.5 Of Myths and Movements

24

2 Societal Foundations of Economic Development

27

2.1 Polanyi as the Common Denominator of Post-structuralism and Neoclassical Economics

28

2.2 No Such Thing as a ‘Globalization Paradox’

28

2.3 Polanyi as ‘Intellectual Guide’ in Economics and Anthropology

32

3 Neoliberalism: A Mythical and Meaningful Term Devoid of Any Deep Thought

34

3.1 Did the Rent-Seeking Economy of Feudalism Serve the Needs of the People?

35

3.2 The Enclosure Movement in the UK as the Beginning of Industrial Agriculture

36

3.3 Blaming Agricultural Trade Has Never Solved Any Food Security Problem

37

3.4 Fernand Braudel’s Criticism of Polanyi’s Interpretation of History

38

3.5 Why Polanyi’s Bipolar Framing Finds Fertile Ground

39

4 The Impact of Popular Stereotypes in Academic Research and Public Policy

42

4.1 Echo Chambers: The Attack on Democracy from Within

43

4.2 Embedded Liberalism: A Flawed Concept

44

4.2.1 The Artificial Separation of the ‘Authentic’ Local from the ‘Generic’ Global Product

45

4.2.2 Governments as the Blameless Defenders Against Careless Big Business

46

4.2.3 Why More Regulation Does not Lead to More Public Trust: The Case of GMOs

47

4.2.4 Self-Regulation in Industry as a Base for Subsequent Government Regulation

48

4.2.5 Why the Ruggie Framework May Not Be Harmless

48

4.3 Indigenous Communities as Projection Screens for Preserved Cultural Embeddedness

49

4.3.1 How the Indian Chipko Movement Became a Symbol of NIMBY Environmentalism

51

4.3.2 Myths Embodied in Scientific Models that Guide Academic Research

54

4.3.3 ‘Epistemic Brokers’ in Postmaterial Societies: The Case of Vandana Shiva

56

4.3.4 Cultural Appropriation and Denial of Local Agency

59

4.3.5 The Temptation in Academia to Uncritically Embrace Environmental Narratives

61

5 The New Understanding of the Term ‘Embeddedness’ in Economic Sociology

63

5.1 The Moral Dimension of Entrepreneurship

64

5.2 Embeddedness as a Way to Address Three Major Coordination Problems

64

5.3 Value as a Coordination Problem

65

5.4 Competition as a Coordination Problem

66

5.5 Cooperation as a Coordination Problem

68

5.6 Embeddedness in the Context of Economic Complexity

70

6 Economic Globalization as a “Disembedding” Force?

72

6.1 Why Disembedding Traditional Structures May Help Outsiders

73

6.2 Disembedding Post-Colonial Structures

74

6.3 How FDI Contributed to Catch-up Growth and Economic Empowerment

75

6.4 ‘Knowledge’, an Underused Resource in Efforts to Cope with Environmental Challenges

77

6.5 The Failure of Foreign Aid to Empower Local Entrepreneurs Through Economic Integration

78

6.5.1 Self-Serving Nature of Swiss Sustainable Trade Promotion and Development Research

79

6.5.2 How the Anti-business Rhetoric of Epistemic Brokers Supports Incumbents

82

6.5.3 Local Growth-Oriented Entrepreneurs as Drivers of Economic Integration

82

7 Embedded MNEs and Their Contribution to Sustainable Change

84

7.1 Coping with Business Coordination Problems Through a Strategy of ‘Principled Embeddedness’

85

7.2 The UNGP and Its Potential Conflict with Principled Embeddedness

86

7.3 The Role of Subsidiaries of MNEs in Developing Countries

87

7.4 Selected Cases of ‘Principled Embeddedness’ of Subsidiaries of MNEs

88

7.4.1 Nestlé Philippines: An Locally Embedded Company

89

7.4.2 Syngenta’s Contribution to Capacity Development for Agricultural Innovation

90

7.4.3 Bata Shoes: Creating Welfare by Taking Rather Than Avoiding Risk

92

7.4.4 The Responsible Entrepreneur and the Selfless Communist

94

7.4.5 Chiquita: A Pioneer in Sustainable Banana Production with a Legacy Problem

95

7.4.6 The Problem with Business to Consumer Labels in Agriculture

97

7.5 Embeddedness and Its Link to Sustainability and Corporate Responsibility

98

8 Development Cooperation as a Catalyst for Sustainable Long-Term FDI

100

8.1 How Development Assistance (DA) Could Encourage Foreign Direct Investment (FDI)

102

8.1.1 Sourcing Ingredients for Beer Production in Uganda

103

8.1.2 Empowering Pastoralists Through Business Development in Kenya

104

8.1.3 Enabling Access to Finance: The Case of Vodafone

105

8.2 Lessons Learned from Public-Private Partnerships (PPPs)

107

9 Concluding Remarks

109

References

121