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NGOs' influence on MNEs' social development strategies in varying institutional contexts: A transaction cost perspective

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  • Vachani, Sushil
  • Doh, Jonathan P.
  • Teegen, Hildy

Abstract

In this paper, we examine the effect of nongovernmental organizations (NGOs) on the transaction costs multinational enterprises (MNEs) assume in their nonmarket social development strategies. We develop propositions to predict the effect of three important aspects of the institutional context on how NGOs affect MNE transaction costs: institutional development, institutional distance and institutional dynamism. We also propose how these relationships are moderated by the level of civil society development in the countries in which these entities interact. We conclude with suggestions for further research.

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  • Vachani, Sushil & Doh, Jonathan P. & Teegen, Hildy, 2009. "NGOs' influence on MNEs' social development strategies in varying institutional contexts: A transaction cost perspective," International Business Review, Elsevier, vol. 18(5), pages 446-456, October.
    • Handle: RePEc:eee:iburev:v:18:y:2009:i:5:p:446-456
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    3. Rana, Mohammad B. & Elo, Maria, 2017. "Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh," Journal of International Management, Elsevier, vol. 23(1), pages 87-106.
    4. Marano, Valentina & Tashman, Pete, 2012. "MNE/NGO partnerships and the legitimacy of the firm," International Business Review, Elsevier, vol. 21(6), pages 1122-1130.
    5. Spagnoletti, Belinda & O’Callaghan, Terry, 2013. "Let there be light: A multi-actor approach to alleviating energy poverty in Asia," Energy Policy, Elsevier, vol. 63(C), pages 738-746.
    6. Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
    7. Müllner, Jakob & Puck, Jonas, 2018. "Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis," Journal of World Business, Elsevier, vol. 53(1), pages 15-26.
    8. Raphaël Maucuer & Alexandre Renaud, 2019. "Company’s Business Models and NGOs: Inputs from the Partnerships Portfolio [Business models de l’entreprise et ONG : contributions du portefeuille de partenariats]," Post-Print hal-02062146, HAL.
    9. Jan Anton van Zanten & Rob van Tulder, 2018. "Multinational enterprises and the Sustainable Development Goals: An institutional approach to corporate engagement," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 208-233, December.
    10. Anna-Lena Maier, 2021. "Political corporate social responsibility in authoritarian contexts," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 476-495, December.
    11. Abdelzaher, Dina & Fernandez, Whitney Douglas & Schneper, William D., 2019. "Legal rights, national culture and social networks: Exploring the uneven adoption of United Nations Global Compact," International Business Review, Elsevier, vol. 28(1), pages 12-24.
    12. Jakob Utgård, 2018. "Retail Chains’ Corporate Social Responsibility Communication," Journal of Business Ethics, Springer, vol. 147(2), pages 385-400, January.
    13. Poulis, Konstantinos & Poulis, Efthimios & Plakoyiannaki, Emmanuella, 2013. "The role of context in case study selection: An international business perspective," International Business Review, Elsevier, vol. 22(1), pages 304-314.
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