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MNC-host government interaction:: Government pressures on MNCS in China

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  • Osland, Gregory
  • Björkman, Ingmar

Abstract

Government pressures are thought to influence multinational companies' strategies. This study analyzes central government pressures regarding MNCs in China since 1990, particularly the pressures concerning operational modes utilized by foreign companies investing in China. The methodology utilizes in-depth interviews of MNC executives and government officials from the United States, Scandinavia, and China. The results indicate that the Chinese government has ratcheted up the pressure on MNCs to produce and source locally and that some MNCs are facing intense pressure to lobby their own governments on behalf of China. This article also provides insights for managers into government workings and provides practical suggestions on how to deal with governments.

Suggested Citation

  • Osland, Gregory & Björkman, Ingmar, 1998. "MNC-host government interaction:: Government pressures on MNCS in China," European Management Journal, Elsevier, vol. 16(1), pages 91-100, February.
    • Handle: RePEc:eee:eurman:v:16:y:1998:i:1:p:91-100
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    Cited by:

    1. Dominique Jolly, 2005. "The Exogamic Nature of Sino-Foreign Joint Ventures," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 285-306, September.
    2. Nassimbeni, Guido & Sartor, Marco, 2007. "Sourcing in China: a typology," International Journal of Production Economics, Elsevier, vol. 107(2), pages 333-349, June.
    3. Violeta Iftinchi & Gheorghe Hurduzeu, 2018. "How Multinational Corporations Use Lobbying And Advocacy To Mitigate Political Risks," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 3(special), pages 18-26, May.
    4. Luo, Yadong, 2004. "A coopetition perspective of MNC-host government relations," Journal of International Management, Elsevier, vol. 10(4), pages 431-451.
    5. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.

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