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Managing in a Global Context 26E03200 (6 cr)

SYLLABUS
26 Jan. 2017

Instructors contact information Course information


Name: Professor Rebecca Piekkari Status of the course: Elective in Management and
E-mail: rebecca.piekkari@aalto.fi International Business Masters programme, CEMS
Office: A512, Main Building, Tl Campus course (6 cr)
Office hours: by appointment Academic Year: Period III, Tue and Thu 14.15-15.45
https://people.aalto.fi/index.html#rebecca_piekkari Location: Aalto BIZ, A-401 (Main building)
Course coordinator: Iiris Saittakari Language of Instruction: English
E-mail: iiris.saittakari@aalto.fi

1. OVERVIEW

This research-oriented course addresses the specific challenges associated with managing large and
geographically dispersed multinational corporations (MNCs) in various contexts. It provides students with
potentially relevant theoretical frameworks for the MSc theses and prepares them for writing an academic
piece of work. During the course, some of the major theoretical perspectives based on both recent and classic
research on MNCs will be introduced and the following questions will be examined: 1) What makes MNCs
important and interesting to study? 2) What is context and why does it matter? 3) What kind of theoretical
perspectives are available to understand and make sense of MNCs? 4) How has research on the roles and
responsibilities of headquarters and subsidiaries changed and evolved over time? These questions will be
addressed through readings, written assignments, case exercises and guest lectures.

2. PREREQUISITES

No specific prerequisites. This course is part of MSc studies.

3. LEARNING OUTCOMES

Upon completion of the course, students are expected to demonstrate knowledge of the major theoretical
perspectives (design, institutional, network, and political) on the MNC. They will also be familiar with effects of
various contexts on managing the MNC. Students are expected to be able to critically analyze readings on the
MNC, uncover underlying assumptions of theoretical perspectives and apply these perspectives to real-life
organizational situations. Taken together, this equips students with the necessary knowledge, analytical skills
and critical thinking for the MSc thesis and managerial practice.

4. ASSESSMENT AND GRADING

1. Individual pre-assignment for Session 1 10%


2. Analysis of readings in groups in class 20% (2 x 10 p.)
3. In-class cases in groups (Fazer, Guggenheim Helsinki) 20% (2 x 10 p.)
4. Individual reflection papers on key learnings 30% (20 p. plus 2 x 5 p.)
5. Active participation and contribution 20% (10 x 2 p. plus 2 bonus points)

Grading scale 1-5 will be used for all assignments.

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1. Individual pre-assignment for Session 1 (10%):

In your pre-assignment, please answer the following questions:

1. When you hear the word multinational corporation, what do you associate with this particular term?
Please, reflect also why.

2. In your view, what characterizes internationally operating organizations today?

3. What would you like to learn about these organizations?

Format: A maximum of two pages

Deadline: The pre-assignment has to be uploaded to the assignment submission box in MyCourses by 5
January at 14:00. Be prepared to discuss the article in the first session of the course.

2. Analysis of readings in groups in class (20%, 2 x 10 p.):

For Sessions 5 and 7, the group analysis of the readings assigned for those sessions will be graded. The
evaluation criteria will be given during the first lecture. The articles are discussed in class and overall feedback
is given. Individual feedback is available upon request.

Format: On paper from the flip chart in class with all groups presenting

Deadline: Analysis of readings in groups takes place in Sessions 5 and 7.

3. In-class cases in groups (20%, 2 x 10 p.):

Two case assignments will be done in class as group work. The Fazer case and Guggenheim Helsinki case
are available on MyCourses so that you can read them individually beforehand. The group work itself is done
in class. The criteria for evaluating the case assignment are given during the first lecture. More detailed
instructions for the case assignment are given in class. The case is discussed in class and overall feedback is
given. Individual feedback is available upon request.

Format: On paper from a flip chart in class with all groups presenting

Deadline: In-class cases in groups discussed in Session 3 (Fazer) and Session 10 (Guggenheim).

4. Individual reflection papers on key learnings (30%, 20 p. plus 2 x 5 p.):

Reflection paper 1 (20 p.):

Please, choose two theoretical perspectives to understand the MNC. You can draw on what you have learned
in class as well as any other relevant literature.

Why did you choose these particular theoretical perspectives?

What are the differences and similarities between the selected perspectives?

What underlying assumptions can you decipher in the theoretical perspectives?

Friendly tip: Remember to use academic writing style with proper referencing!

Format: Max 5 pages.

Deadline: The assignment has to be uploaded to the assignment submission box in MyCourses by 1 February
at 14:00.

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Reflection paper 2: Guest lectures (5 p.)

What did you learn from the company speakers (Lidl and Bayer)?

Did the guest lectures confirm or challenge what you have learned from theoretical sources? Please,
illustrate your points with specific examples from the guest lectures.

Friendly tip: Make detailed notes during the guest lectures!

Format: 2-4 power point slides

Deadline: The assignment has to be uploaded to the assignment submission box in MyCourses by 9 February
at 14:00.

Reflection paper 3 (5 p.):

Reflect upon the following questions:

What were the most important take-aways of the course for you personally?

How has your thinking about the MNC evolved during the course (compare to your initial thoughts in
the pre-assignment for Session 1)?

What (if anything) will you think about and/or do differently from now on?

Friendly tip: Keep a weekly learning diary during the course!

Format: 2-4 power point slides

Deadline: The assignment has to be uploaded to the assignment submission box in MyCourses by 17 February
at 14:00.

5. Active participation and contribution (20%, 10 x 2 p. plus 2 bonus points)

Although the classes are not compulsory, you will learn most by actively participating in the course. Each
session and its assignments have been designed in such a way that it is very difficult to pass the course without
active participation.

During every class we will discuss the readings assigned for each session in order to expose you to the relevant
academic literature on each topic. The full references to the articles are available in the course outline below.
To maximize your learning, you will need to (1) read individually these articles before class rather than reading
them all at once. In the course outline, you will find specific questions to direct your reading. I suggest you use
approximately 1-2 hours for getting familiar with the articles beforehand. In class, you will then (2) analyze
these articles in groups of 3-5 students. Please, note that the groups will change in every session.

For the purpose, 20% of the course evaluation will be based on active participation and contribution. If you
want to receive the activity and contribution points (max. 10 x 2 p.), you will need to prepare (1) a power point
summary of the readings for Sessions 2 and 4, which you return to MyCourses before the start of the class (2
x 2 p.) and (2) contribute to class discussion in meaningful ways (8 x 2p.). Participation points are not given in
sessions 3 and 10 as the in-class cases in groups will take place in those sessions. In addition, you can also
get 2 bonus points for responding to the feedback survey. These points will be awarded at the end of the
course. Name tags need to be worn throughout the course.

Note for all assignments:

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Please note that none of the above assignments are compulsory, you will just not get the points for
those that you miss. However, in order to ensure the same rules for all students, the deadlines are
non-negotiable and assignments cannot be compensated with a different one.

5. READINGS

Only selected readings (the case and book chapters) are available on MyCourses. As to all the other readings,
you are expected to download them yourself based on the references provided in the preliminary schedule.
These readings are publicly available, and you can find them easily by searching (in Google) with the article
name (please note this works on any Aalto computer, but not elsewhere) or via our university library webpages.

6. PRELIMINARY SCHEDULE

Time Location Contents


Tue 10.1 A-401 Session 1: Introduction to the course (participation strongly
14:15-15:45 recommended)

Topic:
- getting started
- goals, pedagogy, assignments and practicalities
- group dynamics
- selection of class representatives
- definitions of the MNC
- what makes the MNC important and interesting to study in IB
research?
- discussion of the pre-assignment
- theoretical perspectives

Reading for article analysis:


Davis, M.S. (1971). Thats interesting! Towards a phenomenology of
sociology and sociology of phenomenology. Philosophy of the Social
Sciences, 1: 309-344
Thu 12.1 A-401 Session 2: Context and contextualization
14:15-15:45
Topic:
- what is context?
- why does it matter in IB research?
- local integration and embeddeness of the MNC in various contexts

Readings:
Tsui, A. S. (2004) Contributing to global management knowledge: A case
for high quality indigenous research,.Asia Pacific Journal of
Management, 21, 491-513

Michailova, S. (2011) Contextualizing in International Business


research: Why do we need more of it and how can we be better at it?
Scandinavian Journal of Management, 27(1), 129-139.
Santos, J., and Williamson, P. J. (2015) The new mission for
multinationals, MIT Sloan Management Review, 56(4).45-54.

Tue 17.1 A-401 Session 3: The multilingual MNC


14:15-15:45
Topic:
- what opportunities and challenges does language diversity in MNCs
present?

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- how is a language strategy designed?
- Fazer case (in-class case assignment)

Readings:
Luo, Y., and Shenkar, S. (2006). Multinational corporation as a
multilingual community: Language and organization in a global context.
Journal of International Business Studies, 37(3), 321-339.

Piekkari, R., Welch, D. E. and Welch, L. S. (2014) Language in


international business: The multilingual reality of global business
expansion, Ch. 9 (see MyCourses).

Fazer case (see MyCourses)

Thu 19.1 A-401 Session 4: From HQ-subsidiary relationships to research on


14:15-15:45 subunits and activities

Topic:
- how has the research on the changing roles and responsibilities of
headquarters and foreign subsidiaries evolved?
- different types of HQ and the parenting advantage
- HQ control mechanisms and distance in the MNC

Readings:
Ambos, B. and Mahnke, V. (2010) How do MNC headquarters add
value? Management International Review, 50, 403-412.

Hedlund, G. (1986). The hypermodern MNC: A heterarchy? Human


Resource Management, 25(1), 9-35.

Birkinshaw, J. (2001). Strategy and management in MNE subsidiaries.


In A. M. Rugman & T. L. Brewer (Eds.), Handbook of international
business, (Oxford: Oxford University Press, pp. 380-401 (see
MyCourses).

Tue 24.1 A-401 Session 5: Theoretical perspectives on the MNC and the HQ
14:15-15:45
Topic:
- which theoretical perspectives are available to understand the MNC
and its HQ?
- how would you contrast and compare the views on HQ presented in
the articles?
- article analysis in groups in class which will be graded

Questions for the readings:


- How would you describe the role of HQ in the MNC?
- How does the HQ exercise control over foreign subsidiaries?
- What is the basis of HQ power?
- How do the authors view the environment in which the MNC and
HQ are embedded?
- How do/might the authors treat conflict between HQ and foreign
subsidiaries?
- Which metaphor would you use to characterize this theoretical
perspective?

Readings:

Goold, M., Campbell, A. and M. Alexander (1998), Corporate strategy


and parenting theory, Long Range Planning, 31(2), 308-14.

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Forsgren, M., U. Holm and J. Johanson (1995), Division headquarters
go abroad: A step in the internationalization of the multinational
corporation, Journal of Management Studies, 32 (4), 475-91.

Bouquet, C., Birkinshaw, J. M. and Barsoux, J.-L. (2016) Fighting the


headquarters knows best syndrome, MIT Sloan Management Review,
57(2), 58-66.
Thu 26.1 A-401 Session 6: Institutional and political perspectives on the MNC
14:15-15:45
Topic:
- what are the similarities and differences between the institutional
and political perspectives on the MNC?

Questions for the readings:

- What are the key features of the institutional/political perspective?


- What similarities and differences can you identify between the
perspectives?
- How would you describe the role of HQ in the MNC?
- How would you apply these perspectives to an empirical study of an
MNC?

Readings:
Kostova, T. and Zaheer (1999) Organizational legitimacy under
conditions of complexity: The case of the multinational enterprise.
Academy of Management Review, 24(1), 64-81.

Edman, J. (2016) Reconciling the advantages and liabilities of


foreignness: Towards an identity-based framework, Journal of
International Business Studies, 47(6), 674-694.

Geppert, M. and Drrenbcher, C. (2014) Politics and power within


multinational corporations: Mainstream studies, emerging critical
approaches and suggestions for future research. International Journal
of Management Reviews, 16, 226244.

Bouquet, C., Barsoux, J. and Levy, O. (2015) The perils of attention


from headquarters, MIT Sloan Management Review, 56(2), 16-18.

Tue 31.1 A-401 Session 7: Network perspectives on the MNC


14:15-15:45
Topic:
- what is the essence of network perspectives?
- article analysis in groups in class which will be graded

Questions for the readings:


- what similarities and differences can you detect between the
network perspectives of the two articles?

Readings:

Ghoshal, S. and Bartlett, C.A. (1990) The multinational corporation as


an interorganizational network, Academy of Management Review,
15(4): 603625.

Andersson, U. and Johanson, J. (1997) International business


enterprise. I. Bjrkman and M. Forsgren (Eds.), The Nature of the
International Firm: Nordic Contributions to International Business

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Research, Copenhagen School of Economics, Copenhagen, pp. 33-49
(see MyCourses).

Thu 2.2 A-401 Session 8: Cross-border transfer and translation of management


14:15-15:45 practices

Topic:
- the challenges and opportunities of moving management practices
across different institutional environments

Visitor (tbc):
- Jonna Musa, Category Manager, Lidl Finland

Readings:
Ferner, A., Almond, P. and Colling, T. (2005) Institutional theory and
cross-border transfer of employment policy: The case of workforce
diversity in US multinationals, Journal of International Business
Studies, 36(3), 304-321.

Geppert, M., Williams, K. and Wortmann, M. (2015), Micro-political


game playing in Lidl: A comparison of store-level employment relations.
European Journal of Industrial Relations, 21(3), 241257.

Check website: http://kaupanvuosi.fi/in-english/

Tue 7.2 Keilaranta Session 9: Regional headquarters and regional management


14:15-15:45 12, 02150
Espoo Topics:
- the challenges and opportunities of managing regionally

Company visit (tbc):


- Bayer Nordic SE, Espoo

Readings:
Nell, P., Ambos, B. and Schlegelmilch, B. (2011) The benefits of
hierarchy? Exploring the effects of regional headquarters in
multinational corporations. In C. G. Asmussen, T. Pedersen, T. M.
Devinney, L. Tihanyi (Eds.) Dynamics of Globalization: Location-
Specific Advantages or Liabilities of Foreignness? (Advances in
International Management, Volume 24), Emerald Group Publishing
Limited, pp. 85-106.

Alfoldi, E. A., Clegg, L. J., and McGaughey, S. L. (2012) Coordination at


the edge of the empire: The delegation of headquarters functions
through regional management mandates. Journal of International
Management, 18, 276292.

Thu 9.2 A-401 Session 10: NGOs as non-traditional MNCs and wrap-up
14:15-15:45
Topic:
- Guggenheim Helsinki case
- putting it all together

Readings:
Fenwick, M. (2005) Extending strategic international human resource
management research and pedagogy to the non-profit multinational,
The International Journal of Human Resource Management, 16(4), 497-
512.

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Teegen, Doh and Vachani (2004) The importance of non-governmental
organizations (NGOs) in global governance and value creation: An
international business research agenda, Journal of International
Business Studies, 35, 463-483.

7. COURSE WORKLOAD

Classroom hours 20

Class preparation 40
Assignments 100

Total 160 h (6 ECTS)

8. ETHICAL RULES

Aalto University Code of Academic Integrity and Handling of Violations


https://into.aalto.fi/pages/viewpage.action?pageId=3772443

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