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To bribe or to convince? Political stakeholders and political activities in German multinational corporations

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  • Holtbrügge, Dirk
  • Berg, Nicola
  • Puck, Jonas F.
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    Abstract

    In this paper, the relevance of political stakeholders and political activities in German multinational corporations (MNCs) is examined. The focus is on three main questions: First, which political stakeholders influence the behavior of MNCs? Second, which political activities do MNCs develop to cope with stakeholder interests? Third, how are political stakeholders and political activities influenced by situational conditions? A seemingly unrelated regression (SUREG) analysis of data collected from the largest 19 German MNCs in their home country and in their subsidiaries in China, France, India, Russia, and the US demonstrates that the influence of political stakeholders increases with the size of the MNC. Both the relevance of political stakeholders and the intensity of political activities depend on several country- and firm-specific conditions. Moreover, a strong influence due to the impact of political stakeholders on the intensity of political activities can be observed.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 16 (2007)
    Issue (Month): 1 (February)
    Pages: 47-67

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    Handle: RePEc:eee:iburev:v:16:y:2007:i:1:p:47-67

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    Keywords: Stakeholder management Political activities Cross-country comparison Business and society Institutions and business;

    References

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    1. Timothy P Blumentritt & Douglas Nigh, 2002. "The Integration of Subsidiary Political Activities in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 33(1), pages 57-77, March.
    2. Chuck C Y Kwok & Solomon Tadesse, 2006. "The MNC as an agent of change for host-country institutions: FDI and corruption," Journal of International Business Studies, Palgrave Macmillan, vol. 37(6), pages 767-785, November.
    3. Steven Globerman & Daniel M Shapiro, 1999. "The Impact of Government Policies on Foreign Direct Investment: The Canadian Experience," Journal of International Business Studies, Palgrave Macmillan, vol. 30(3), pages 513-532, September.
    4. Bryan W Husted, 1999. "Wealth, Culture, and Corruption," Journal of International Business Studies, Palgrave Macmillan, vol. 30(2), pages 339-359, June.
    5. Peter Rodriguez & Donald S. Siegel & Amy Hillman & Lorraine Eden, 2006. "Three Lenses on the Multinational Enterprise: Politics, Corruption and Corporate Social Responsibility," Rensselaer Working Papers in Economics 0608, Rensselaer Polytechnic Institute, Department of Economics.
    6. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
    7. Keillor, Bruce D. & Hult, G. Tomas M., 2004. "Predictors of firm-level political behavior in the global business environment: an investigation of specific activities employed by US firms," International Business Review, Elsevier, vol. 13(3), pages 309-329, June.
    8. Yadong Luo, 2001. "Toward a Cooperative View of MNC-Host Government Relations: Building Blocks and Performance Implications," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 401-419, September.
    9. Fan, Ying, 2002. "Questioning guanxi: definition, classification and implications," International Business Review, Elsevier, vol. 11(5), pages 543-561, October.
    10. Andreas Polk, 2002. "Lobbying Activities of Multinational Firms," SOI - Working Papers 0205, Socioeconomic Institute - University of Zurich, revised Jun 2002.
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    Cited by:
    1. Lawton, Thomas & Rajwani, Tazeeb & Doh, Jonathan, 2013. "The antecedents of political capabilities: A study of ownership, cross-border activity and organization at legacy airlines in a deregulatory context," International Business Review, Elsevier, vol. 22(1), pages 228-242.
    2. Somnath Lahiri, 2011. "India-focused publications in leading international business journals," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 427-447, June.

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