Title: Clash of the titans: Conflict intensity, community dependence on environmental resources, and stakeholder multiplicity

Abstract: Extending the stakeholder multiplicity perspective and resource dependence theory, this study investigates how the dependency of both a company and a community on environmental resources for livelihoods influences the conflict intensity between them. We theorize that companies face difficulties in managing key stakeholders when these stakeholders heavily rely on environmental resources for their livelihoods. We also argue that their conflicted relationship depends on surrounding stakeholders’ involvements. This study highlights that stakeholder multiplicity shapes the dynamics in stakeholder salience (competing or cooperating), which in turn affects companies’ approach towards them. The study analyzes 318 global mining conflicts spanning from 2002 to 2013 using a hand-collected, multi-source dataset. Empirical findings reveal that local communities’ dependence on environmental resources increases the intensity of conflicts between mining companies and communities. The positive effect of communities’ resource dependence on conflict intensity is weakened by the involvement of environment-oriented (vis-a-vis growth-oriented) government actors. In contrast, the lack of support from broader society (societal inequality) strengthens this effect.

Citation: Oh, C.H. and Shin, J. (accepted) “Clash of the titans: Conflict intensity, community dependence on environmental resources, and stakeholder multiplicity,” Journal of Management Studies.

Title: Location Matters: Valuing Firm-Specific Non-Market Risk in the Global Mining Industry

Abstract: Mines located near environmentally sensitive water sources are subject to nonmarket risks arising from the potential collective actions of local stakeholders and their allies. Stock markets recognize these non-market risks and apply a discount to mines located near environmentally sensitive water sources, particularly rivers. Investor reaction is stronger in countries with larger institutions that support collective. However, non-market risk management is also important even in countries with low political and institutional risk.  

Citation: Oh, C.H., Shapiro, D., Ho, S., and Shin, J. (2020) “Location Matters: Valuing Firm-Specific Non-Market Risk in the Global Mining Industry,” Strategic Management Journal, 41(7): 1210-1244.

 Title: Melting pot or tribe? Country-level ethnic diversity and its effect on subsidiaries

 Abstract: The purpose of our study is to explore the effect of country-level ethnic diversity on subsidiary-level ownership strategy and employee productivity. We examine two characteristics of ethnic diversity in society, the level of diversity and degree of inclusion. Using a multi-source and multi-year (2004–2010) sample of 30,007 subsidiaries from 79 home-countries operating in 63 host-countries, we find that high levels of diversity are not a de facto form of country risk as some have argued. Rather, it is the ability of a dominant ethnic group to exclude others from full economic and political participation. As societies become more fragmented, and one or few groups become more dominant and prevents other groups from fully participating in the political process or economic opportunities, this may increase business risk and lower labor productivity. The broader policy implications are that policymakers should have engagement policies toward disfranchised ethnic groups. Policymakers should develop polices aimed at leveraging the benefits of diversity. MNCs have an interest in promoting such policies and fostering greater economic and political inclusion in countries where they operate.

 Citation: Oetzel, J., & Oh, C. H. (2019). Melting pot or tribe? Country-level ethnic diversity and its effect on subsidiaries. Journal of International Business Policy, 2(1), 37-61.