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

Chul Woo Moon · Augustine A. Lado

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International Business and FDI Natural Resources and Economic Development Political Influence and Corporate Strategies

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-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.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1990Absorptive Capacity: A New Perspective on Learning and Innovation 1990Institutions, Institutional Change and Economic Performance 1985Economic Action and Social Structure: The Problem of Embeddedness 1984A resource‐based view of the firm 1991Institutions, Institutional Change and Economic Performance 1991The fifth discipline, the art and practice of the learning organization

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