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MNEs and development: a review and reconceptualization

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  • Oetzel, Jennifer
  • Doh, Jonathan P.

Abstract

In this paper, we review and critique two prominent theories in the international business and international economics literatures regarding the role of multinational enterprises (MNEs) in host country development: the "spillovers" perspective on the impact of MNE investment in host countries and the liabilities of foreignness (LOF) view that specifies the constraints MNEs must overcome to succeed in local, developing country markets. We then propose an alternative conceptualization of MNE-host country relations in which MNEs and local nongovernmental organizations (NGOs) pursue collaborative relationships that make a positive, collective contribution to host country development and to MNE and NGO strategic goals in ways that neither sector is positioned to do alone.

Suggested Citation

  • Oetzel, Jennifer & Doh, Jonathan P., 2009. "MNEs and development: a review and reconceptualization," Journal of World Business, Elsevier, vol. 44(2), pages 108-120, April.
  • Handle: RePEc:eee:worbus:v:44:y:2009:i:2:p:108-120
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    22. Carolina Salcedo & Michele E. M Akoorie, 2013. "Foreign Direct Investment in Chile: Historical Process, changing political ideologies and the responses of MNEs," REVISTA AD-MINISTER, UNIVERSIDAD EAFIT, June.
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    25. Narula, Rajneesh & Verbeke, Alain, 2015. "Making internalization theory good for practice: The essence of Alan Rugman's contributions to international business," Journal of World Business, Elsevier, vol. 50(4), pages 612-622.

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