SUPPLY CHAIN GOVERNANCE AND MULTINATIONAL CORPORATIONS’ GOVERNANCE – A THEORETICAL COMPARISON - Polish Journal of Management Studies

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SUPPLY CHAIN GOVERNANCE AND MULTINATIONAL CORPORATIONS’ GOVERNANCE – A THEORETICAL COMPARISON

Abstracts > Vol 6

SUPPLY CHAIN GOVERNANCE AND MULTINATIONAL CORPORATIONS GOVERNANCE A THEORETICAL COMPARISON
Crisan E.


Abstract: Globalization is measured by the number of countries where companies have subsidiaries. Being present on different markets, owning manufacturing capabilities in countries with inexpensive labor force or ensuring the direct supply of raw materials are decisions made by all companies which consider the expansion and the power of their business.  The goal of this article is to discuss about choosing the best alternative for expansion if governance mechanisms are considered.
Two alternatives exist: one is to expand by acquisition; the other is to enter another country through partnerships. Considering simple corporate governance, both alternatives contain supplementary elements, creating in this manner more complex environments.
Multinational Companies (MNCs) add to the simple - domestic corporate governance the next elements: multi-national governance systems characteristics and forms of expansion, but also local business cultures. Supply chain governance contains the elements presented for MNCs, while other should be considered: forms of collaboration, partner
s power within the relation.
Both these complex governance forms are further presented. The main conclusion is that MNCs governance practices can be borrowed for supply chain governance. Some authors consider that supply chains are forms of outsourcing and so avoiding corporate governance.

Keywords: governance, supply chains, multinationals



Introduction

With As the influence of international business systems grows, supply-chains and multi-national companies expanding alike within the world, researchers and practitioners are interested to understand the relations that exist between headquarters and subsidiaries on one side, and between supply chain partners on the other.
The goal of this article is to present differences and similarities between these two forms of governance. A literature review is performed, following the next structure:

1. Within the first part of the article governance is defined, extending the simplest approach of corporate governance to multi-level governance, in this case the hierarchical paradigm of governance;

2. Supply chain governance characteristics are presented within the second part of the article;
3. Details regarding MNCs governance are presented within the third part of the article and conclusions are made at the end.


... more in full version

Summary

Considering the presentation of supply chain and multinational companies
governance, there are some ideas which should be underlined. Both systems are at the beginning, while corporate governance is the current practice within the business world. The development of this new field, inter-organizational governance, is important for practitioners and scientists, there are already many studies presenting possible scenarios for the evolution of this complex field.
Given the incipient phase of these governance systems, there are low transparence and low predictability regarding the development of practices within inter-organizational environments. Great companies were considered by citizens as poles of attraction for politicians and poles of power, being able to influence political decisions. If we recognize the new governance systems, there could be manifest transparent influence actions from supply chains and multinational companies to state governments.
Regarding governance research, supply chain research seems to underline on the importance of the relation between partners. Governance is a reaction obtained from the interaction of several partners. MNCs governance studies insist on the differences which exist within the same company in different countries: corporate governance systems, business cultures or business practices. ....


ZARZĄDZANIE ŁAŃCUCHEM DOSTAW I ZARZĄDZANIE W MIĘDZYNARODOWYCH KORPORACJACH - TEORETYCZNE PORÓWNANIE


Streszczenie: Globalizacja jest mierzona przez liczbę krajów, w których firmy mają oddziały. Obecnie na różnych rynkach, posiadanie zdolności produkcyjnych w krajach o taniej sile roboczej, lub zapewnienie bezpośrednich dostaw surowców, stanowią decyzje podejmowane przez wszystkie przedsiębiorstwa, które uwzględniają rozwój i siłę ich działalności. Celem niniejszego artykułu jest omówienie wyboru najlepszej opcji dla ekspansji jako mechanizmu zarządzania. Występują tutaj dwie alternatywy: po pierwsze jest to rozszerzenie przez przejęcie, po drugie, aby wprowadzić inny kraj w ramach partnerstwa. Biorąc pod uwagę prostotę ładu korporacyjnego, obie alternatywy zawierają elementy dodatkowe, tworząc w ten sposób bardziej złożone środowiska. Przedsiębiorstwa Wielonarodowe (MNC) można dodać do prostego - krajowego ładu korporacyjnego w ramach kolejnych elementów: wielonarodowych systemów zarządzania, jego cech i form rozwoju, ale także lokalnych kultur biznesowych. Zarządzanie łańcuchem dostaw zawiera elementy przedstawione w MNC, inne należy natomiast uwzględnić jako formy: współpracy lub partnera władzy w związku.
Obie te złożone formy zostały zaprezentowane. Głównym wnioskiem jest to, że praktyki w zakresie ładu MNC mogą być wypożyczone do zarządzania łańcuchem dostaw. Niektórzy autorzy uważają, że łańcuchy dostaw są formą outsourcingu i unikają ładu korporacyjnego.

Słowa kluczowe
: zarządzanie, łańcuchy dostaw, wielonarodowość

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