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NGOs' influence on MNEs' social development strategies in varying institutional contexts: A transaction cost perspective

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  • Vachani, Sushil
  • Doh, Jonathan P.
  • Teegen, Hildy
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    Abstract

    In this paper, we examine the effect of nongovernmental organizations (NGOs) on the transaction costs multinational enterprises (MNEs) assume in their nonmarket social development strategies. We develop propositions to predict the effect of three important aspects of the institutional context on how NGOs affect MNE transaction costs: institutional development, institutional distance and institutional dynamism. We also propose how these relationships are moderated by the level of civil society development in the countries in which these entities interact. We conclude with suggestions for further research.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 18 (2009)
    Issue (Month): 5 (October)
    Pages: 446-456

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    Handle: RePEc:eee:iburev:v:18:y:2009:i:5:p:446-456

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    Related research

    Keywords: Context Institutional development Institutional distance Institutional dynamism Multinational strategy NGO Social responsibility Transaction cost Governance;

    References

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    9. Hildy Teegen & Jonathan P Doh & Sushil Vachani, 2004. "The importance of nongovernmental organizations (NGOs) in global governance and value creation: an international business research agenda," Journal of International Business Studies, Palgrave Macmillan, vol. 35(6), pages 463-483, November.
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    12. Keith D Brouthers, 2002. "Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 203-221, June.
    13. Chol Lee & Paul W Beamish, 1995. "The Characteristics and Performance of Korean Joint Ventures in LDCS," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 637-654, September.
    14. Vachani, Sushil, 2005. "Problems of foreign subsidiaries of SMEs compared with large companies," International Business Review, Elsevier, vol. 14(4), pages 415-439, August.
    15. Vachani, Sushil, 1997. "Economic liberalization's effect on sources of competitive advantage of different groups of companies: the case of India," International Business Review, Elsevier, vol. 6(2), pages 165-184, April.
    16. Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(2), pages 334-64, October.
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    Cited by:
    1. Poulis, Konstantinos & Poulis, Efthimios & Plakoyiannaki, Emmanuella, 2013. "The role of context in case study selection: An international business perspective," International Business Review, Elsevier, vol. 22(1), pages 304-314.
    2. Marano, Valentina & Tashman, Pete, 2012. "MNE/NGO partnerships and the legitimacy of the firm," International Business Review, Elsevier, vol. 21(6), pages 1122-1130.
    3. Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
    4. Spagnoletti, Belinda & O’Callaghan, Terry, 2013. "Let there be light: A multi-actor approach to alleviating energy poverty in Asia," Energy Policy, Elsevier, vol. 63(C), pages 738-746.

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