Coordination Failures and the Role of Foreign Direct Investment in Least Developed Countries

Portelli, Brian

doi:10.4337/9781845421670.00014

Cited by 1 publication

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Secondly, the role of international organizations and the influence of globalization have been underrated in the original obsolescing bargaining model. Market liberalization requirements in particular imposed on developing countries by the Bretton Woods institutions have increased the competition between developing countries to encourage FDI as part of their economic development plans (Portelli, 2004). Eden (2004) argues that the desire of host governments to attract FDI, combined with more cooperative relations between governments and TNCs (Dunning, 1993;Luo, 2001), makes the model less applicable today.…”

Section: B An Obsolescing Bargain Over Time?mentioning

confidence: 99%

Internationalization of TNCs from the extractive industries: A literature review

Kraemer¹,

Tulder²

2009

Transnational Corporations

View full text Add to dashboard Cite

The literature on the nature, shape and logic of internationalization of extractive industry TNCs is rather fragmented and poorly developed. This is a mounting problem since extractive industries are not only becoming increasingly important, but their operations have also become increasingly controversial. This article takes stock of three types of approaches towards internationalization. First traditional intrinsic motives, which represent an 'international management' angle and focuses on the resource-seeking, efficiency-seeking and strategic asset-seeking nature of extractive TNCs. Secondly, traditional extrinsic motives, which represents a more political economic angle towards extractive industries, and which builds on a bargaining perspective of internationalization. Thirdly, a modern extension of extrinsic motives to internationalization will be added, which considers the increasing role of Non-Governmental Organizations as factor in shaping the internationalization trajectories of extractive industries. This approach represents a 'stakeholder' approach to firm strategies. It considers the societal position of firms and considers the 'license to operate' or the normative position of transnational corporations. A correct understanding of the dynamics of internationalization of extractive industry TNCs requires an integrative approach of extrinsic as well as intrinsic motives. This article delineates the most important ingredients of such an approach.

show abstract