Integrating host-country political heterogeneity into MNE–state bargaining

Insights from international political economy

Dados Bibliográficos

ID21410137
AutoresSumon Kumar Bhaumik (0000-0002-4459-3659, University of Sheffield), Saul Estrin (0000-0002-3447-8593, London School of Economics and Political Science), Rajneesh Narula (0000-0002-4266-2681, University of Reading, autor correspondente)
Ano2024
Volume55
Fascículo2
Páginas157-171
Data de publicação2024-03-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of International Business Studies (JOURNAL)
Identificadores do periódicoISSN: 0047-2506 • E-ISSN: 1478-6990
EditoraSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1057/s41267-023-00651-w
OpenAlexW4387338714
IdiomaEN
Citações recebidas5
Referências citadas65

The international business (IB) literature has emphasised the heterogeneity of firm strategies in shaping MNE–state bargaining, but largely ignored the heterogeneity of states. In contrast, the international political economy (IPE) literature provides a more nuanced consideration of state strategies and their economic and political priorities. We seek to address this oversight by making two related contributions. In the context of MNE–state bargaining, we first discuss how differences in political systems and the political and economic objectives of states may affect their negotiating stance with MNEs. We consider the impact of changes in the balance of state objectives by considering how much importance governments assign to improving the welfare of its broader population, relative to how important they are concerned with the “private benefits” that accrue to the political elites. This enables us to add micro-foundations to the characterisation of the state. Second, we apply a Nash bargaining framework to MNE–state negotiations that vividly captures the relative bargaining powers of the MNE and the state, including how “outside options” available to these two actors can influence the shape of actual bargains. We discuss the implications of these two contributions for future research

Bargaining power · Context (archaeology) · Economic system · Economics · International business · International political economy · Microeconomics · Negotiation · Political economy · Political science · Politics · State (computer science) · International Business and FDI · International Development and Aid · Political Influence and Corporate Strategies