MNC-Host Government Bargaining Power Relationship: A Critique and Extension Within the Resource-Based View

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 res...

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Bibliographic Details
Published in:Journal of management 2000, Vol.26 (1), p.85-117
Main Authors: Moon, Chul W., Lado, Augustine A.
Format: Article
Language:English
Subjects:
Bargaining
Business
International business enterprises
Multinational corporations
Negotiation
Organization theory
Organizational behavior
Political aspects
Power
Studies
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Summary: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-á-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.
ISSN:0149-2063
1557-1211
DOI:10.1177/014920630002600108