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Yadong Luo - One of the best experts on this subject based on the ideXlab platform.

  • Political behavior, social responsibility, and perceived corruption: a structuration perspective
    Journal of International Business Studies, 2006
    Co-Authors: Yadong Luo
    Abstract:

    This study unites the three lenses – political behavior, corporate social responsibility, and corruption – and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate with the Host Government is positively related to its philanthropic contribution and resource accommodation, whereas its propensity to be assertive with the Host Government is positively associated with its emphasis on ethics and organizational credibility. We argue that when perceived corruption in the business segment increases, an MNE's propensity to cooperate and be assertive with the Government decreases, its focus on ethics heightens, and its philanthropic contribution diminishes. As to the three-way interactions, when perceived corruption in the business segment increases, MNEs that focus more on ethics have a greater propensity to use arm's length bargaining to deal with the Government, whereas those focusing less on ethics have a greater propensity to use social connections to deal with the Government. Our analysis of sample MNEs in China generally supports these propositions.

  • a coopetition perspective of mnc Host Government relations
    Journal of International Management, 2004
    Co-Authors: Yadong Luo
    Abstract:

    Abstract Building on convergent insights of resource dependence and business political behavior, this article attempts to develop a conceptual and typological framework of coopetition in which cooperation and competition simultaneously coexist in the relationship between multinational corporations (MNCs) and Host Governments. The coopetition view does not see the MNC–Government relationship (MGR) as dichotomous or as a continuum between cooperation and competition but as a simultaneous, inclusive partnership containing cooperation and competition as two separate yet interrelated continua. This article addresses why coopetition arises, what coopetition constitutes, and how coopetition configures with environmental and organizational dynamics. It offers a typology of coopetition that identifies MNCs involving varying cooperation and competition (estranger, contender, partner, and integrator) and elucidates each identity's political responses.

  • toward a cooperative view of mnc Host Government relations building blocks and performance implications
    Journal of International Business Studies, 2001
    Co-Authors: Yadong Luo
    Abstract:

    This study examines cooperation-based relations between MNCs and Host Governments. We theorize that resource commitment, personal relations, political accommodation, and organizational credibility are four building blocks for improving an MNC's cooperative relationships with Governments. Analysis of 131 MNCs in China validates the importance of these blocks in shaping MNC–Government relations and the importance of these relations in shaping the performance of MNC subsidiaries.

  • partner selection and venturing success the case of joint ventures with firms in the people s republic of china
    Organization Science, 1997
    Co-Authors: Yadong Luo
    Abstract:

    It has been hypothesized in the international joint venture IJV literature that partner selection affects interpartner “fit” which in turn influences a synergistic effect on IJV performance. This study investigates the relationship between IJV success and the strategic and organizational traits of local partners. We address this issue in the context of an emerging economy P.R. China. Newly emerging economies have in recent years become major Hosts of direct investment by multinational corporations MNCs because these rapidly expanding economies, characterized by an exploding demand previously stifled by ideologically-based Government intervention, provide tremendous opportunities which MNCs can preempt. MNCs in such economies, however, face the challenges of structural reform, weak market structure, poorly specified property rights, and institutional uncertainty. Right local partners can help MNCs boost market expansion, obtain insightful information, mitigate operational risks, and provide country-specific knowledge. The analysis of the data obtained from China suggests that both strategic and organizational traits of local partners are significantly associated with some individual dimensions of IJV performance. Among strategic traits, absorptive capacity, product relatedness, and market power are favorable to IJVs' market and financial outcomes. Market power and experience significantly reduce IJVs' operational uncertainties. Of organizational traits, international experience and organizational collaboration are important for IJVs' not only profitability and stability but also local market expansion and export growth. Organizational form and size influence IJVs' local market performance. The findings provided by this study can help MNCs determine what criteria they should use in opting for local partners and what criteria are vital to their goal accomplishment. Those investors seeking local market expansion should select those local partners that have rich market experience, superior market position, high absorptive capacity, and related product diversification with the IJVs. Those seeking profitability and stability should select local firms that have superior international experience, longer organizational collaboration, and greater market power. While MNCs should use appropriate strategic and organizational criteria to select local partners, the Host Government or local firms can try to make these traits available to attract more stable and profitable foreign direct investment.

Augustine A Lado - One of the best experts on this subject based on the ideXlab platform.

  • mnc Host Government bargaining power relationship a critique and extension within the resource based view
    Journal of Management, 2000
    Co-Authors: Chul Woo Moon, Augustine A Lado
    Abstract:

    In this paper, we critique the literature on MNC-Host Government bargaining power relationship, and propose an integrative theoretical model within the resource-based view of the firm. Recognizing that a firm’s bargaining power is directly related to rent generation, we analyze how firm-specific resources provide the basis of a sustainable bargaining power for the MNC vis-a-vis the Host Government. Furthermore, we identify several industry and country characteristics as moderators of the relationship between MNC resources and bargaining power. In the last section of the paper, we offer directions for future research and theory development in this area.

Shen Jie - One of the best experts on this subject based on the ideXlab platform.

  • on foreign direct investment and policy of Host Government
    Journal of Nanjing Forestry University, 2003
    Co-Authors: Shen Jie
    Abstract:

    The theory of foreign direct investment primarily involves transnational corporations as the research object.However,the effect of the Host Government has not been paid enough attention.With the economic globalization,Host Governments have been carrying out all kinds of preferential policies for foreign direct investment.Analyzed by the Game Theory,the competition of policies among Host Governments result in irrationality for the whole.It is necessary to coordinate Host Governments′ policies at the international multi level.

Yiru Regina Chen - One of the best experts on this subject based on the ideXlab platform.

  • effective public affairs in china mnc Government bargaining power and corporate strategies for influencing foreign business policy formulation
    Journal of Communication Management, 2004
    Co-Authors: Yiru Regina Chen
    Abstract:

    China’s open‐market reform and rapid economic growth have generated a tremendous surge in activity and market investment by multinational corporations (MNCs). By 2000, 400 of the 500 most famous MNCs had invested in China. One distinctive feature of China’ s business environment, its authoritarian political system, requires MNCs to practise strategic public affairs to interact constantly with the different levels of Chinese Government, respond to the policies and further influence business policy formation. This paper proposes a conceptual model of MNC‐Government bargaining that is composed of international political economy, dependency theory and agency theory. It then examines (1) the international and domestic influences on MNC‐Government bargaining in China and (2) the strategies MNCs employed to influence Chinese laws for foreign business in their interests. A case study of the Chinese ban on direct selling operations in 1998 and Amway’s strategies to remove the ban is presented. Results suggest that effective public affairs should engage in the following activities: (1) issues management, (2) constantly and systematically analysing the MNC’s bargaining power with the Host Government, (3) selecting public affairs strategies based on the analysis of MNC‐Government bargaining, (4) exercising relationship management, and (5) being ethical in its practice.

Chul Woo Moon - One of the best experts on this subject based on the ideXlab platform.

  • mnc Host Government bargaining power relationship a critique and extension within the resource based view
    Journal of Management, 2000
    Co-Authors: Chul Woo Moon, Augustine A Lado
    Abstract:

    In this paper, we critique the literature on MNC-Host Government bargaining power relationship, and propose an integrative theoretical model within the resource-based view of the firm. Recognizing that a firm’s bargaining power is directly related to rent generation, we analyze how firm-specific resources provide the basis of a sustainable bargaining power for the MNC vis-a-vis the Host Government. Furthermore, we identify several industry and country characteristics as moderators of the relationship between MNC resources and bargaining power. In the last section of the paper, we offer directions for future research and theory development in this area.