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MNEs and policy networks: Institutional embeddedness and strategic choice

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  • Rizopoulos, Yorgos A.
  • Sergakis, Dimitrios E.
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    Abstract

    Political strategies are a crucial matter for MNEs in the context of globalization. We argue that MNEs' influence on political decision-making depends on their insertion into policy networks, which define the institutional framework and the interaction patterns of business/government relations in different issue-areas. Then, we propose a stylized taxonomy regarding the differentiation of MNEs' political leverage in various domains, at a home country level. Finally, we explore the influence of political power at home on MNEs' strategic approaches to the host countries, taking into account the bargaining power of local actors in the concerned issue-areas.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 45 (2010)
    Issue (Month): 3 (July)
    Pages: 250-256

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    Handle: RePEc:eee:worbus:v:45:y:2010:i:3:p:250-256

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    Keywords: Business-government relations MNEs political strategies Policy networks;

    References

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    1. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 341-363, September.
    2. Peter Rodriguez & Donald S Siegel & Amy Hillman & Lorraine Eden, 2006. "Three lenses on the multinational enterprise: politics, corruption, and corporate social responsibility," Journal of International Business Studies, Palgrave Macmillan, vol. 37(6), pages 733-746, November.
    3. Sushil Vachani, 1995. "Enhancing the Obsolescing Bargain Theory: A Longitudinal Study of Foreign Ownership of U.S. and European Multinationals," Journal of International Business Studies, Palgrave Macmillan, vol. 26(1), pages 159-180, March.
    4. Thomas L Brewer, 1992. "An Issue-Area Approach to the Analysis of MNE-Government Relations," Journal of International Business Studies, Palgrave Macmillan, vol. 23(2), pages 295-309, June.
    5. Mense-Petermann, Ursula, 2006. "Micro-political or inter-cultural conflicts? - An integrating approach," Journal of International Management, Elsevier, vol. 12(3), pages 302-317, September.
    6. Levy David L. & Prakash Aseem, 2003. "Bargains Old and New: Multinational Corporations in Global Governance," Business and Politics, De Gruyter, vol. 5(2), pages 1-21, December.
    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.
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