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Multinationals and institutional competitiveness

Author

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  • Peer Hull Kristensen
  • Glenn Morgan

Abstract

This article discusses how institutional competitiveness and multinationals are mutually enriching concepts. Multinationals transfer capital, technology, and knowledge into new settings. They allow subsidiaries access to new markets, new resources, and new processes. Potentially, therefore, institutional competitiveness can be increased by the presence of multinational corporations (MNCs) and their subsidiaries. However, this depends on the type of multinational and the type of institutional context. By differentiating two types of MNC in terms of short‐term and long‐term orientations to investment, and two types of host institutional setting in terms of strength of institutional complementarities and interconnectedness, we develop a typology of four types of interaction between MNCs and institutional settings. We then analyze how each type influences institutional competitiveness. We conclude that these outcomes, while structurally shaped, are still dependent on how actors (individuals, firms, collective organizations, and governments) strategize to develop institutional frameworks in the context of highly competitive global markets.

Suggested Citation

  • Peer Hull Kristensen & Glenn Morgan, 2007. "Multinationals and institutional competitiveness," Regulation & Governance, John Wiley & Sons, vol. 1(3), pages 197-212, September.
    • Handle: RePEc:wly:reggov:v:1:y:2007:i:3:p:197-212
    DOI: 10.1111/j.1748-5991.2007.00017.x
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    References listed on IDEAS

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    Cited by:

    1. Phil Almond & Maria Gonzalez Menendez & Patrick Gunnigle & Jonathan Lavelle & David Luque Balbona & Sinead Monaghan & Gregor Murray, 2014. "Multinationals and regional economies: embedding the regime shoppers?," Transfer: European Review of Labour and Research, , vol. 20(2), pages 237-253, May.
    2. Vickie Dekocker, 2016. "When do social actors shape sub-national employment policies? Case study evidence from four multinationals in Belgium," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(4), pages 622-643, November.

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