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Privatization, governance, and survival: MNE investments in private participation projects in emerging economies

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  • Jiang, Yi
  • Peng, Mike W.
  • Yang, Xiaohua
  • Mutlu, Canan C.

Abstract

Multinational enterprises (MNEs) investing in infrastructure privatization projects in emerging economies – often known as private participation projects – face both market-based and nonmarket-based competition simultaneously. Integrating transaction cost economics, bargaining model, and the institution-based view, we examine the bargaining process between MNEs and host governments. Leveraging data from 113 emerging economies, we find that the survival of MNE investments is dependent on the bargaining outcomes between MNE and host governments around investment location, governance structure, and host governments’ ownership of the private participation projects.

Suggested Citation

  • Jiang, Yi & Peng, Mike W. & Yang, Xiaohua & Mutlu, Canan C., 2015. "Privatization, governance, and survival: MNE investments in private participation projects in emerging economies," Journal of World Business, Elsevier, vol. 50(2), pages 294-301.
  • Handle: RePEc:eee:worbus:v:50:y:2015:i:2:p:294-301
    DOI: 10.1016/j.jwb.2014.10.006
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    Cited by:

    1. Canan Mutlu & Wu Zhan & Mike Peng & Zhiang Lin, 2015. "Competing in (and out of) transition economies," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 571-596, September.
    2. Kenji Fujiwara, 2015. "Necessarily welfare-improving privatization," Discussion Paper Series 130, School of Economics, Kwansei Gakuin University, revised Jul 2015.
    3. repec:spr:manint:v:57:y:2017:i:5:d:10.1007_s11575-017-0312-4 is not listed on IDEAS
    4. Hodgkinson, Ian R. & Hughes, Paul & Arshad, Darwina, 2016. "Strategy development: Driving improvisation in Malaysia," Journal of World Business, Elsevier, vol. 51(3), pages 379-390.
    5. Ma, Xufei & Ding, Zhujun & Yuan, Lin, 2016. "Subnational institutions, political capital, and the internationalization of entrepreneurial firms in emerging economies," Journal of World Business, Elsevier, vol. 51(5), pages 843-854.
    6. Mike W. Peng & Garry D. Bruton & Ciprian V. Stan & Yuanyuan Huang, 2016. "Theories of the (state-owned) firm," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 293-317, June.
    7. Kenji Fujiwara, 2015. "Mixed Oligopoly and Privatization in General Equilibrium," Discussion Paper Series 137, School of Economics, Kwansei Gakuin University, revised Dec 2015.
    8. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9514-3 is not listed on IDEAS

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