We examine the extent to which host country income inequality influences multinational enterprises’ (MNE) expansion strategy for foreign production investment, depending on their specific strategic objectives. Applying a transaction cost framework, we predict that national income inequality has an inverted U-shaped relationship with foreign production investment. As inequality increases, MNEs accrue lower transaction costs arising from interactions with various local actors, leading to higher probability of investment. As income inequality increases further, its effect on location attractiveness will become negative, as (...) its attraction effect is increasingly offset by additional monitoring, bargaining, and security costs owing to the more fractious nature of high inequality societies. In addition, we suggest that the impact of income inequality is contingent on investment objectives: The inverted U-shaped relationship is stronger for efficiency-seeking investment but weaker for market-seeking and competence-enhancing investments. We find substantial support for our hypotheses through an analysis of 27 years (1986-2012) of data on Japanese MNEs’ overseas production entries. (shrink)

Extant literature romanticizes frugality as a lifestyle trait that helps in the spiritual evolution of consumers, which in turn enables them in overcoming the negative consequences of materialism and over-consumption. Extant studies have not paid attention to cultural contexts, such as caste and gender, which could outline the non-volitional enactment of frugality in societies such as India. We draw from the work of the political philosopher Alain Badiou to argue that frugality embodies non-volitional subjectivities and is linked to processes of (...) responsibilization and de-politicization. We engage with layered narratives from three story-sites and conceptualize frugality as a socio-political subjectivity that disenfranchises consumers and normalizes inequality. Our study provides evidence of how consumers are made to adopt frugality to conform to political conservatism and unequal orders of caste and gender. (shrink)

Extant literature romanticizes frugality as a lifestyle trait that helps in the spiritual evolution of consumers, which in turn enables them in overcoming the negative consequences of materialism and over-consumption. Extant studies have not paid attention to cultural contexts, such as caste and gender, which could outline the non-volitional enactment of frugality in societies such as India. We draw from the work of the political philosopher Alain Badiou to argue that frugality embodies non-volitional subjectivities and is linked to processes of (...) responsibilization and de-politicization. We engage with layered narratives from three story-sites and conceptualize frugality as a socio-political subjectivity that disenfranchises consumers and normalizes inequality. Our study provides evidence of how consumers are made to adopt frugality to conform to political conservatism and unequal orders of caste and gender. (shrink)

Research on economic inequality has largely focused on understanding the relationship between organizations and inequality but has paid limited attention to the role of institutions in the creation and maintenance of inequality. In this article, we use insights from the caste system—an institution that perpetuates socio-economic inequalities and limits human functions—to elaborate on three elements of economic inequality: uneven dispersions in resource endowments, uneven access to productive resources and opportunities, and uneven rewards to resource contributions. We argue that economic inequalities (...) persist because these three different elements of inequality feed from and reinforce each other. Our study underscores the potential of the caste lens to inform research on economic inequality as well as organizational theory and practice. (shrink)

Considering the urgency of addressing grand challenges that affect human health and achieving the ambitious health targets set by the United Nations’ Sustainable Development Goals, the role of business in improving health has become critical. Yet, our systematic review of the business–health literature reveals that business research focuses primarily on occupational health and safety, health care organizations, and health regulations. To embrace the health externalities generated by business activities, we propose that future research should investigate the conditions under which business (...) articulates and participates in health challenges, engages in multilevel actions toward tackling health challenges, and improves health outcomes and its impact on the health of external stakeholders, including customers and local communities. We also urge business scholars to engage with the public health research community to increase impact. (shrink)