2012
DOI: 10.1177/1350508412440350
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Toward a critical framework for understanding MNE operations: Revisiting Coca-Cola’s exit from India

Abstract: The exit of Coca-Cola from India in the 1970s has been extensively used in IB textbooks as illustrating the challenges faced by MNEs in difficult political/regulatory environments. In this article, we use critical hermeneutics to challenge the conventional understanding and interpretation of the event. Instead, an understanding of the macro-economic and historical context suggests that the company had other options available to it and may have lost a valuable opportunity due to inflexible policies. IB textbook… Show more

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Cited by 13 publications
(10 citation statements)
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References 34 publications
(35 reference statements)
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“…As a result, the balance of power may shift away from the multinational partner even though the partner accounts for a large proportion of the local firm's inputs. For example, research shows that local government may intervene by specifically regulating technology transfers or the disclosure of some secret formulas (Gopinath and Prasad 2012). In this situation, MNCs may adapt to local political conditions so as to maintain their footholds in an important foreign market.…”
Section: Mnc Power Moderated By Government Influencementioning
confidence: 99%
“…As a result, the balance of power may shift away from the multinational partner even though the partner accounts for a large proportion of the local firm's inputs. For example, research shows that local government may intervene by specifically regulating technology transfers or the disclosure of some secret formulas (Gopinath and Prasad 2012). In this situation, MNCs may adapt to local political conditions so as to maintain their footholds in an important foreign market.…”
Section: Mnc Power Moderated By Government Influencementioning
confidence: 99%
“…Equally importantly, scholars also heed attention to the possible researcher overemphasis on texts at the expense of overlooking the context, which in turn may lead to misguiding inferences about focal organizational phenomena (Gopinath and Prasad, 2012;Prasad and Mir, 2002). The elaboration on the context forestalls the probable interpreter alienation to the text and portrays the temporal, cultural, and social environment where the text production takes place (Kipping, Wadhwani and Bucheli, 2014, p. 325).…”
Section: Literature Reviewmentioning
confidence: 99%
“…In more recent hermeneutic formulations, methodology makes way for an openness to dialogue, and an interest in significance, that is, not meaning-per-se but meaning-for-me (Gadamer, 1989). In more critically-orientated hermeneutics, there is greater focus on uncovering hidden meaning and exploring whose interests are served by keeping it hidden (Gopinath and Prasad, 2012;Ricoeur, 1970). Across all these strands of hermeneutic theory, however, there is some sort of connection between interpretation and meaning, and an assumption that understanding is possible, whether through method, dialogue or critique (Tomkins and Eatough, 2018).…”
Section: A 'Turn To Experience' and The Politics Of Interpretationmentioning
confidence: 99%