This study examines the growing problems that multinational corporations (MNEs) are facing as a result of a confluence of pandemics, environmental disasters, and the digital revolution. These problems appear as organizational, market, and geopolitical complexity, which institutional pluralism magnifies. As the nature of productive activity changes, so do the ways in which MNEs structure and manage their operations. Additionally, changing investor and consumer expectations are broadening the definition of value creation and having an effect on company strategies. They contend that these difficulties force MNEs to reevaluate the way in which they formulate, establish, and carry out their corporate purposes. In order to wrap up, they suggest a research agenda that stresses how critical it is for MNEs to take a purpose-driven approach.
Top1. Introduction
Customers are currently working harder to maximize the specific benefits they get. The increasing demand for personalized products and the growing influence of customers on the development and production processes are two examples of this (Bauernhansl et al., 2017). The adoption of digital technologies by factories is necessary to meet this problem. The phrase “Industrie 4.0” refers to the desired state in Germany. In order to ensure real-time information is available throughout the whole life cycle of products, processes, and manufacturing facilities, this entails improving information, communication, and automation technologies. Human resources, products, and production systems are all included in this network.
Additionally, the obtained large data sets are used for thorough optimization (Delgosha et al., 2020; Kagermann, 2017; Kar et al., 2019). Due to this exceptional situation, mechanical engineering companies face both opportunities and difficulties. By utilizing customer data, new opportunities for improving products and processes become available, such as improving machining techniques or anticipating the need for spare parts. At the same time, these businesses must deal with new consumer expectations; customers now demand not just to buy a physical machine but also service systems that include both hardware and software and offer value based on their individual needs (Bauernhansl et al., 2017; Kar et al., 2019; Lusch & Nambisan, 2015).
Examples used to illustrate this point include context-specific features and data that let machine operators quickly adjust to changing consumer needs. Such cases require tight cooperation between mechanical engineering companies and manufacturers. Information technology (IT) has evolved beyond its traditional function as a tool for increasing internal efficiency. Instead, it evolves into a crucial part of value generation and takes on a transformative function that provides a fresh source of competitive advantage (Lusch & Nambisan, 2015). Mechanical engineering businesses undergo a significant shift as a result of the imperative proliferation of goods with digital components, the development of cyber-physical systems, and their integration into service ecosystems. This transformation is known as the digital transformation journey.
It is praised that digitization will hasten the transition to sustainability. Services are now more affordable because to cloud computing, which lowers the cost of maintaining digital infrastructure. New capabilities are being introduced by artificial intelligence and machine learning (AI/ML), which have the potential to contribute 14% of the world's GDP by 2030 (PwC, 2017). The Internet of Things (IoT) will connect billions of gadgets with the help of 5G technology, increasing the intelligence of objects in homes, businesses, and factories. Additionally, the pandemic has sped up the manifestation of corporate purpose as stakeholders and employees alike wonder what purpose corporations serve in promoting social goals.
All of this takes place in the context of open and prompt social media reactions to multinational corporations' (MNEs') conduct (Zattoni & Pugliese, 2021). How profit-driven businesses, particularly MNEs, interact with their stakeholders is changing as a result of the convergence of the global health crisis brought on by the pandemic, the biodiversity crisis, and the climate catastrophe, as well as the calls for socioeconomic change (Hitt et al., 2021).
Multinational companies (MNEs) are facing new obstacles that force them to rethink how they use sustainability and digitization to accomplish their goals. First, MNEs must navigate a geopolitical landscape that is becoming more complex, where addressing climate change demands international cooperation in a time of rising nationalism and trade barriers (Lubinski & Wadhwani, 2020). Despite the acknowledged seriousness of the biodiversity and climate problems, there is a wide range of political readiness and capacity across nations to act and enforce strict rules. Digital technologies play a part in improving transparency and accountability as the regulatory landscape throughout the world changes, which has an impact on how MNEs evaluate potential for sustainable activities.