IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v9y2003i3p271-285.html
   My bibliography  Save this article

International NGOs as global institutions: using social capital to impact multinational enterprises and governments

Author

Listed:
  • Teegen, Hildy

Abstract

Due to institutional power and prevalence at the national (or subnational) level, certain global collective good exchanges do not comport well with a national institution model. Examples of such globally relevant exchanges include those concerning the natural environment and those pertaining to key human rights considerations such as health care/disease prevention. These global collective good exchanges entail the involvement of both multinational enterprises (MNEs) and national governments. The allegiance of MNEs to any particular country has been questioned; national governments are arguably driven by their perceptions of their specific nation's interests. These global exchanges encounter formal institutional failure due to the supranational venue of these exchanges, and concerns regarding institutional legitimacy are furthered by incompatibilities between public sector (national governments) and private sector (MNE) actors' interests. In this institutional chasm, the governance and promotion of effective exchange relations between and among these players is hampered. These market imperfections and resulting high transaction costs associated with collective goods [J. Law Econ. 3 (1960) 1.] prevent actors from efficiently engaging in exchange relations. It is in this context of formal institutional failure that "third sector" entities--international nongovernmental organizations (INGOs)--have emerged as informal institutions operating globally to significantly change the context within which governments and MNEs interact. A recent review of the concept of social capital by Adler and Kwon [Acad. Manage. Rev. 27 (2002) 17.] is used to theoretically support an empirically documented surge in activity by INGOs at the global level as a response to heightened transactions costs in this venue. I attempt to respond to the call by Leenders and Gabbay [CSC: an agenda for the future. In R.Th.A.J. Leenders and S.M. Gabbay (Eds.), Corporate social capital and liability, pp. 483-494, Boston: Kluwer, 1999.] to link this emerging global social structure (the rise of third sector institutions--INGOs) to the concept of the social capital that INGOs inherently possess as institutions that bridge and bond public and private sector actors. I provide an illustrative example of an INGO that utilizes social capital in filling an informal institutional role for global goods/services transactions: the Nature Conservancy and its work in a prototype Joint Implementation (JI)/Clean Development Mechanism project in Belize as called for under the Kyoto Protocol.

Suggested Citation

  • Teegen, Hildy, 2003. "International NGOs as global institutions: using social capital to impact multinational enterprises and governments," Journal of International Management, Elsevier, vol. 9(3), pages 271-285.
  • Handle: RePEc:eee:intman:v:9:y:2003:i:3:p:271-285
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425303000371
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keohane, Robert O. & Nye, Joseph S., Jr., 2001. "Between Centralization and Fragmentation: The Club Model of Multilateral Cooperation and Problems of Democratic Legitimacy," Working Paper Series rwp01-004, Harvard University, John F. Kennedy School of Government.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    3. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
    4. Casson, Mark, 1991. "The Economics of Business Culture: Game Theory, Transaction Costs, and Economic Performance," OUP Catalogue, Oxford University Press, number 9780198283751, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    2. Galkina, Tamara & Yang, Man, 2020. "Bringing Nordic Slush to Asia: Entrepreneurial internationalization of an NGO as a social movement," International Business Review, Elsevier, vol. 29(6).
    3. Anisur Faroque & Olli Kuivalainen & Jashim Uddin Ahmed & Mahabubur Rahman & Hiran Roy & M. Yunus Ali & Md Imtiaz Mostafiz, 2021. "Performance implications of export assistance: the mediating role of export entrepreneurship," Post-Print hal-03545902, HAL.
    4. Drogendijk, H.J., 2005. "The Development of Network Relations of MNC Subsidiaries : How Internal MNC and External (Local) Relations Evolve," Other publications TiSEM 4bf995a4-6f3b-41b8-bb40-1, Tilburg University, School of Economics and Management.
    5. Kourula, Arno, 2010. "Corporate engagement with non-governmental organizations in different institutional contexts--A case study of a forest products company," Journal of World Business, Elsevier, vol. 45(4), pages 395-404, October.
    6. Drogendijk, H.J., 2005. "The Development of Network Relations of MNC Subsidiaries : How Internal MNC and External (Local) Relations Evolve," Discussion Paper 2005-128, Tilburg University, Center for Economic Research.
    7. Kayleigh Bruijn & Panikos Georgallis & João Albino-Pimentel & Arno Kourula & Hildy Teegen, 2024. "MNE–civil society interactions: a systematic review and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(2), pages 136-156, March.
    8. Ishva Minefee & Marcelo Bucheli, 2021. "MNC responses to international NGO activist campaigns: Evidence from Royal Dutch/Shell in apartheid South Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 971-998, July.
    9. Rivera-Santos, Miguel & Rufín, Carlos, 2010. "Global village vs. small town: Understanding networks at the Base of the Pyramid," International Business Review, Elsevier, vol. 19(2), pages 126-139, April.
    10. Mark Mcgovern & Nurcan Temel Candemir, 2006. "Agents, Institutions and Regions in Transition," ERSA conference papers ersa06p788, European Regional Science Association.
    11. Salla Laasonen & Martin Fougère & Arno Kourula, 2012. "Dominant Articulations in Academic Business and Society Discourse on NGO–Business Relations: A Critical Assessment," Journal of Business Ethics, Springer, vol. 109(4), pages 521-545, September.
    12. Xiaohua Yang & Cheryl Rivers, 2009. "Antecedents of CSR Practices in MNCs’ Subsidiaries: A Stakeholder and Institutional Perspective," Journal of Business Ethics, Springer, vol. 86(2), pages 155-169, March.
    13. Choi, Gunae, 2022. "Determinants of target location selection for acquirers in the manufacturing sector: Pollution intensity, policy enforcement, and civic environmentalism," Journal of Business Research, Elsevier, vol. 146(C), pages 308-324.
    14. Maria Joutsenvirta, 2011. "Setting Boundaries for Corporate Social Responsibility: Firm–NGO Relationship as Discursive Legitimation Struggle," Journal of Business Ethics, Springer, vol. 102(1), pages 57-75, August.
    15. Cosmina Lelia Voinea & Hans Kranenburg, 2018. "Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies," Management International Review, Springer, vol. 58(5), pages 705-741, October.
    16. Vivoda Vlado, 2011. "Bargaining Model for the International Oil Industry," Business and Politics, De Gruyter, vol. 13(4), pages 1-36, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    2. Jeffrey B. Miller & Kenneth Koford, 2005. "Contract Enforcement in the Early Transition to a Market Economy," Working Papers 05-11, University of Delaware, Department of Economics.
    3. Peter Maskell & Mark Lorenzen, 2004. "The Cluster as Market Organisation," Urban Studies, Urban Studies Journal Limited, vol. 41(5-6), pages 991-1009, May.
    4. Koford, Kenneth & Miller, Jeffrey B., 2006. "Contract enforcement in the early transition of an unstable economy," Economic Systems, Elsevier, vol. 30(1), pages 1-23, March.
    5. Cooter, Robert D., 1996. "The theory of market modernization of law," International Review of Law and Economics, Elsevier, vol. 16(2), pages 141-172, June.
    6. Lechosław Rojewski, 2008. "Contracting and Transaction Costs in the Public-Private Partnership. A Conception in the Light of the New Institutional Economy," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 21.
    7. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    8. Andrey V. Korytin, 2020. "Tax Burden Influence on the Foreign Direct Investment Distribution by Economic Industries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 68-86, February.
    9. Qiuyue Xia & Lu Li & Jie Dong & Bin Zhang, 2021. "Reduction Effect and Mechanism Analysis of Carbon Trading Policy on Carbon Emissions from Land Use," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    10. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    11. Usher, Dan, 2001. "Personal goods, efficiency and the law," European Journal of Political Economy, Elsevier, vol. 17(4), pages 673-703, November.
    12. George Tridimas & Stanley L. Winer, 2018. "On the Definition and Nature of Fiscal Coercion," Carleton Economic Papers 18-09, Carleton University, Department of Economics.
    13. Mario Jametti & Thomas von Ungern-Sternberg, 2005. "Assessing the Efficiency of an Insurance Provider—A Measurement Error Approach," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 30(1), pages 15-34, June.
    14. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
    15. Stefan Ambec & Yann Kervinio, 2016. "Cooperative decision-making for the provision of a locally undesirable facility," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(1), pages 119-155, January.
    16. Godwin Okafor & Jenifer Piesse & Allan Webster, 2017. "FDI Determinants in Least Recipient Regions: The Case of Sub†Saharan Africa and MENA," African Development Review, African Development Bank, vol. 29(4), pages 589-600, December.
    17. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    18. Valcu-Lisman, Adriana & Weninger, Quinn, 2012. "Markov-Perfect rent dissipation in rights-based fisheries," ISU General Staff Papers 201209260700001037, Iowa State University, Department of Economics.
    19. Hausknost, Daniel & Grima, Nelson & Singh, Simron Jit, 2017. "The political dimensions of Payments for Ecosystem Services (PES): Cascade or stairway?," Ecological Economics, Elsevier, vol. 131(C), pages 109-118.
    20. Kurtis Swope & Ryan Wielgus & Pamela Schmitt & John Cadigan, 2011. "Contracts, Behavior, and the Land-assembly Problem: An Experimental Study," Research in Experimental Economics, in: Experiments on Energy, the Environment, and Sustainability, pages 151-180, Emerald Group Publishing Limited.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:9:y:2003:i:3:p:271-285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.