Good friends in high places: Politico-economic determinants of the expropriation and taxation of multinational firms

Medina, Luis Fernando; Bucheli, Marcelo; Kim, Minyoung

doi:10.1057/s42214-019-00022-z

Cited by 10 publications

(6 citation statements)

References 99 publications

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“…With respect to host-country political institutions , the literature transcends the conception of a monolithic host government by explicating the functioning of specific political institutions (Medina, Bucheli, & Kim, 2019 ). Henisz and Zelner ( 2005 ) develop a neoinstitutional model of the policy-making process, wherein foreign investors engage with host-country interest groups to construct/frame the legitimacy of emergent institutions and impact their trajectories.…”

Section: Charting the Influence Of Nonmarket Strategy Research: Analytical Framework Citation Analyses And Critical Assessmentmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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Multinational enterprises are deeply engaged in nonmarket strategy (NMS), including both corporate political activity (CPA) and strategic corporate social responsibility (SCSR). In this review, we document the multinational NMS research according to contributions’ theme, method, context, theory, and level of analysis. We then develop an institutional multiplicity framework to organize our analysis of this large and fragmented body of literature. In so doing, we identify the most impactful contributions within three major themes – multinational CPA, multinational SCSR, and the integration of CPA and SCSR – and their respective subthemes, and call attention to limitations in the extant research. We also highlight promising avenues for future research, including expanding the scope of NMS to incorporate microfoundations research, integrating macrolevel scholarship on global institutions, placing greater attention on the interaction between CPA and SCSR, and incorporating multi-actor global issues and movements. Our review underscores the growing importance and missed opportunities of NMS research in the international business field.

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Section: Charting the Influence Of Nonmarket Strategy Research: Analytical Framework Citation Analyses And Critical Assessmentmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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“…Consequently, our findings call for policies that promote “socially minded MNE exemplars” (Nebus, 2019 : 269) to combat the exploitation of corporate power and the more grand corruption that can expropriate country wealth (Abotsi, 2018 ). If MNEs’ influence appears to foster wrongdoing and unethical behaviors (Kaufmann, 2005 ), policies can alter incentives to reward social ends in firm strategies (Buckley, 2018 ; Medina, Bucheli, & Kim, 2019 ). Collaborations between MNEs and governments (Doner & Schneider, 2016 ) and between MNEs and supranationals (Ozawa, 2019 ) aimed at instilling anti-corruption norms may serve as vital channels of influence.…”

Section: Differential Impacts Of Formal and Informal Institutions On mentioning

confidence: 99%

“…Collaborations between MNEs and governments (Doner & Schneider, 2016 ) and between MNEs and supranationals (Ozawa, 2019 ) aimed at instilling anti-corruption norms may serve as vital channels of influence. Importantly, this MNE influence should be counterbalanced by the proper working of democratic institutions (Medina et al, 2019 ), such as those that support freedom by the media to expose corporate wrongdoing, or the ability for informed citizens to boycott (Wang & Li, 2019 ).…”

Section: Differential Impacts Of Formal and Informal Institutions On mentioning

confidence: 99%

Globalization, economic development, and corruption: A cross-lagged contingency perspective

Aïssaoui

Fabian

2021

J Int Bus Policy

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The 2020 health and economic crisis has exacerbated tensions and debates over whether globalization benefits economic development, as countries face both pressures to enhance economic opportunities through globalization and populist movements seeking protection from global forces. We first review perspectives that offer competing evidence about the role of globalization in regard to economic development and corruption. Drawing on resource dependence and institutional theory, we test the two contingencies of the country’s stage of economic development (low, lower-middle, upper-middle, high) and the globalization dimension (economic, social, political) at play to reconcile competing findings. Using a cross-lagged panel design, we show that these contingencies significantly explain when and what type of globalization can benefit a country’s economy and affect corruption. In doing so, the study provides a platform for future research, and identifies important patterns that can better guide policymaking. Among other results, we find low-income countries’ GDP and corruption benefit the most from the formal dimensions of globalization. With increased wealth, countries are more responsive to the legitimacy accrued with the informal dimensions of globalization, which we find comes at the expense of economic efficiency for high-income countries.

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“…Likewise, Chilean business groups were often founded to take advantage of market imperfections before adopting pro-market reforms. They survived the transition by creating oligopolistic markets (Medina et al, 2019).…”

Section: Differentiating Between Emncs: Latin Americamentioning

confidence: 99%

A value creation perspective on international business in Latin America: directions for differentiation between emerging market multinationals

Hermans

Borda

2020

MBR

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Purpose This study aims to draw researchers’ attention to the need to differentiate within the emerging market multinational companies (EMNCs) category. This study focuses on international business in Latin America to argue that the region’s specific institutional characteristics have consequences for within-firm decision-making regarding internationalization strategies. Additionally, the study suggests that to develop a more specific understanding of international business in emerging markets, it is important to consider how decision-makers define value and how they can capture such value. Design/methodology/approach The approach used in this study draws on the bathtub analogy used in micro-foundations research in international business. It proposes a multilevel analysis in which micro-level variation in within-firm decision-making is considered, while accounting for the conditioning effects of macro-level contextual factors. Findings The study identifies characteristics of the Latin American institutional context that are relevant to international business strategies and that potentially differ from other emerging market contexts. These include the pendular shifts to and from pro-market economic reform, fragmented government intervention in business, underdeveloped capital markets, low competition among firms and polarized labor markets. The study explains how these characteristics shape the definition of value and firm strategies to capture value in international markets, and provides examples from firms in different industries. Originality/value This study applies a value creation and capture perspective to international business in Latin America, allowing for the simultaneous consideration of macrolevel institutional characteristics and microlevel variation in decision-making regarding internationalization strategies. This perspective not only helps to distinguish Latin American EMNCs from companies from other emerging market contexts, but also explains the considerable variation in the internationalization strategies of firms within the region.

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Good friends in high places: Politico-economic determinants of the expropriation and taxation of multinational firms

Cited by 10 publications

References 99 publications

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

Globalization, economic development, and corruption: A cross-lagged contingency perspective

A value creation perspective on international business in Latin America: directions for differentiation between emerging market multinationals

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