Huawei and ZTE in Malaysia: The Localisation of Chinese Transnational Enterprises

ABSTRACT

While much research has been undertaken on firms’ internationalisation, much less has been written on internationalisation’s other side, localisation. Yet with the rise of emerging economies, especially Chinese transnational corporations, localisation has become an increasingly significant. This article examines the localisation experience of two Chinese telecommunications enterprises – Huawei and ZTE – in Malaysia. By holding these factors constant (the ceteris paribus assumption), several dimensions of localisation are revealed. They are product, workforce, technology, organisation and management. Firm-specific factors matter both in accounting for inter-firm similarities and differences in the manner they localised. Enterprise ownership is also important in explaining firm performance and host countries’ perception of these firms. Leadership styles of these enterprises’ founders also matter. Together, these factors affect the differential pace of firms’ internationalisation and localisation.     

Internationalisation,global capitalism and the integration of Iran

Abstract

There is a common tendency to observe a process of homogenisation when the current international structure is analysed. However, the globalisation process embraces heterogeneities and contradictions stemming from the integration of different states into a single global structure. This article explores the role and motivations of domestic social classes in creating variations in the form of integration of their states into the global whole. It takes one of the odd cases at the centre of inquiry and particularly concentrates on the emergence of alternative forms to the neoliberal globalisation in the process of Iran’s integration into the global capitalism. The accumulation strategies adopted by the dominant class factions in Iran are investigated in order to reveal their dialectical relationship with the international capitalist structure. Their role in the international political economy of Iran demonstrates how social agents through their strategic activities create variations in the forms of integration into the global capitalism. The article compares the Iranian case to the varieties of integration of lately capitalised but not peripherised BRICS (Brazil, Russia, India, China and South Africa) states. This aims to reveal that whilst these countries have truly integrated into the global capitalist system, the internationalisation of their states contradicts the accumulation strategies of their dominant classes.     

New geographies of financial power: global Islamic finance and the Gulf

Abstract

A growing body of critical scholarship has examined the recent growth of Islamic finance (IF), unpacking its ethical assertions and highlighting its close affinities with conventional financial instruments. Receiving less attention, however, is the relationship between the global expansion of IF and the emergence of new financial actors and zones of accumulation. This article situates the evolution of global Islamic circuits alongside processes of capital accumulation in the Gulf Cooperation Council (GCC), arguing that contemporary IF is deeply bound up with the internationalisation of capital groups headquartered in the GCC. This is evident in the internationalisation of GCC Islamic banks, which has given the Gulf a powerful foothold in new markets and a variety of sectors that are typically considered ‘non-financial’. Simultaneously, the expansion and geographical diversification of Islamic debt (sukuk) issuance is refashioning the Gulf’s relationships with other global spaces, a process that looks set to intensify given the widespread push to utilise IF in development financing. Seen from this perspective, the global growth of IF sits in a mutually constitutive relationship with patterns of capital accumulation in the Gulf, as well as the region’s burgeoning weight within (and new linkages to) the global economy.     

Continuity and Pragmatism: How Chinese State-Owned Banks Adapted to Hong Kong’s Free Market (1949–1978)

One of the puzzling features of China’s post-1978 economic reforms is how quickly its enterprises adapted to the new business environment. An insight into this puzzle is provided by Chinese state-owned banks in Hong Kong. From 1949–78 these banks, led by the Bank of China, represented China’s primary financial interface with the outside world. What distinguished the management of these banks from their peers was their loyalty to communist values. Yet, despite Mao Zedong’s anti-imperialist anti-capitalist ideology, the Bank of China demonstrated extraordinary business pragmatism in its engagement with the international financial system. It also exemplified a high level of management continuity which enabled it to see beyond a volatile and often hostile political environment. The article shows that the post-1978 retreat from ideology and its replacement with commercial incentives proved costly in terms of professional standards. A homogenisation of bank management also made it more difficult to recruit senior management whose loyalty to the Communist Party could be assumed. These findings highlight the importance of rule variation in explaining international differences in management behaviour. More generally the article shows the long-term importance of Hong Kong’s role as an internationalising force for China’s business and financial sectors.     

The public affairs of internationalisation: balancing pressures from multiple environments

Managing public affairs is a very complex task for internationalising firms. Multinational companies (MNCs) are not only single organisations operating in a global environment, but at the same time they are collections of interlinked subsidiaries that operate in a diversity of national environments. This paper investigates conceptually how subsidiaries of MNCs build relationships with internal MNC counterparts and external market and non‐market actors as they mature and build resources and capabilities. It shows that, in order to understand the dynamics of public affairs management in MNCs, we need to study the relationships of MNCs and their subsidiaries with a variety of stakeholders in the internal and external environment of the organisation. Copyright © 2004 Henry Stewart Publications     

Meeting the challenges of globalisation in legal education

The focus of this paper is a critical review of the impact of globalisation on international higher education at my own institution, the University of East London (UEL), where I am Programme Leader for LLB (Hons) Law, an undergraduate qualifying law degree. Globalisation, along with internationalisation, has been one of the forces that have most changed the educational landscape in this country over the last two decades. Although closely related to each other, globalisation and internationalisation are usually regarded as distinct forces – the former being defined as the economic, political, and societal forces pushing twenty-first-century higher education towards greater international involvement, while the latter describes the policies and practices of higher education developed to deal with this. Whilst these phenomena have wide implications for higher education as a whole, they present opportunities and challenges that are very specific both to an institution like UEL, which has a high proportion of students from international backgrounds, and to my own discipline, law, which has an increasingly global profile in terms of both legal education and professional practice.     

Internationalisation as a Democratic Tool: Revisiting Mexico's Double Transition

Mexico's double transition—democratisation and internationalisation—offers a good case study to analyse the interaction between internationalisation processes and domestic developments during transitions to democracy. This article explains how the specific way in which Mexico linked with North America worked as a causal mechanism during the country's democratisation. In the end, an inadequate project of internationalisation—spearheaded by the North American Free Trade Agreement (NAFTA)—failed to fulfil its democratising potential.     

Academic perspectives on teaching international family law in higher education institutions in England and Wales

ABSTRACT

The increasing prevalence of family law disputes in England and Wales with an international element is well documented in the development of domestic legislation, case law and family practice. However, despite changes to the legal landscape and the academic recognition of international family law as a legal subject, it is still often disregarded within the undergraduate family law curriculum or as a standalone module. This article explores the development of international family law in England and Wales and presents the findings of a national questionnaire into whether international family law is taught as part of the undergraduate curriculum. The article also explores what barriers exist to including international family law topics. To conclude, the author offers some general advice about incorporating these topics into the curriculum to ensure that students are equipped to deal with the realities of family practice in England and Wales.     

Vetospieler und die Durchsetzbarkeit von Side‐Payments

Once an agreement is signed at the international level, it can no longer be modified during the domestic decision‐making process. However, it is possible to compensate potential veto players by a purely domestic legislative act. Under which circumstances do such side‐payments make sense, and what is the role played by political strategies? In order to be compensated, an actor needs to be considered a veto player. Furthermore, the defenders of the international agreement must have a sufficiently large interest in its ratification to be willing to offer compensations. These basic conditions fulfilled, the existence or not of side‐payments depends on the strategic interactions between the political actors. In the last ten years, Swiss citizens had to vote twice on an international agreement establishing free movement of persons. In both cases, the unions asked for flanking measures; while they failed in their attempt in the context of the European Economic Area, they succeeded in the case of the bilateral agreements. This difference in outcome is all the more surprising since in both cases the unions were in a veto player position and the export oriented economy had a strong interest in the ratification of the agreements. This article explains the different fate of the unions' claims by stressing the role of changes in actor strategies. The credibility of the threat to block the decision‐making process and the succession of the game sequences are in this perspective of paramount importance. By using strategically the veto threat, domestic groups such as unions are able to benefit from internationalisation.