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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.

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.

Suggested Citation

  • Holtbrügge, Dirk & Berg, Nicola & Puck, Jonas F., 2007. "To bribe or to convince? Political stakeholders and political activities in German multinational corporations," International Business Review, Elsevier, vol. 16(1), pages 47-67, February.
  • Handle: RePEc:eee:iburev:v:16:y:2007:i:1:p:47-67
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    References listed on IDEAS

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    Cited by:

    1. Shirodkar, Vikrant & Mohr, Alexander T., 2015. "Explaining foreign firms’ approaches to corporate political activity in emerging economies: The effects of resource criticality, product diversification, inter-subsidiary integration, and business tie," International Business Review, Elsevier, pages 567-579.
    2. repec:spr:manint:v:55:y:2015:i:4:d:10.1007_s11575-014-0232-5 is not listed on IDEAS
    3. 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, pages 228-242.
    4. Heidenreich, Stefan & Mohr, Alexander & Puck, Jonas, 2015. "Political strategies, entrepreneurial overconfidence and foreign direct investment in developing countries," Journal of World Business, Elsevier, vol. 50(4), pages 793-803.
    5. repec:eee:worbus:v:52:y:2017:i:5:p:591-614 is not listed on IDEAS
    6. Jiménez, Alfredo & Luis-Rico, Isabel & Benito-Osorio, Diana, 2014. "The influence of political risk on the scope of internationalization of regulated companies: Insights from a Spanish sample," Journal of World Business, Elsevier, vol. 49(3), pages 301-311.
    7. Somnath Lahiri, 2011. "India-focused publications in leading international business journals," Asia Pacific Journal of Management, Springer, pages 427-447.
    8. Nell, Phillip C. & Puck, Jonas & Heidenreich, Stefan, 2015. "Strictly limited choice or agency? Institutional duality, legitimacy, and subsidiaries’ political strategies," Journal of World Business, Elsevier, vol. 50(2), pages 302-311.
    9. Wöcke, Albert & Moodley, Terence, 2015. "Corporate political strategy and liability of foreignness: Similarities and differences between local and foreign firms in the South African Health Sector," International Business Review, Elsevier, pages 700-709.
    10. repec:spr:manint:v:55:y:2015:i:6:d:10.1007_s11575-015-0248-5 is not listed on IDEAS
    11. Alfredo Jiménez & David Fuente, 2016. "Learning from Others: the Impact of Vicarious Experience on the Psychic Distance and FDI Relationship," Management International Review, Springer, vol. 56(5), pages 633-664, October.

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