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Relations between multinational firms and host governments: the experience of American-owned firms in China

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  • Sanyal, Rajib N.
  • Guvenli, Turgut

Abstract

A survey of managers of American firms in China indicates that they have been able to maintain good relationships with the Chinese government; this is particularly true for larger firms. Statistical results suggest that government interference in the operations of the subsidiary is generally minimal though it is greater in the case of joint ventures as compared to wholly owned firms. The performance of the subsidiary is influenced by the quality of the relationship with the host government. Implications for managers of foreign firms are discussed.

Suggested Citation

  • Sanyal, Rajib N. & Guvenli, Turgut, 2000. "Relations between multinational firms and host governments: the experience of American-owned firms in China," International Business Review, Elsevier, vol. 9(1), pages 119-134, February.
    • Handle: RePEc:eee:iburev:v:9:y:2000:i:1:p:119-134
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    References listed on IDEAS

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    1. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 341-363, September.
    2. Fleisher, Belton M. & Yin, Yong & Hills, Stephen M., 1997. "The role of housing privatization and labor-market reform in China's dual economy," China Economic Review, Elsevier, vol. 8(1), pages 1-17.
    3. Michael S Minor, 1994. "The Demise of Expropriation as an Instrument of LDC Policy 1980-1992," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 177-188, March.
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    Cited by:

    1. Fetscherin, Marc & Voss, Hinrich & Gugler, Philippe, 2010. "30 Years of foreign direct investment to China: An interdisciplinary literature review," International Business Review, Elsevier, vol. 19(3), pages 235-246, June.
    2. Guvenli, Turgut & Sanyal, Rajib, 2003. "Perception and management of legal issues in China by US firms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(2), pages 161-181, May.
    3. Hutzschenreuter, Thomas & Harhoff, Philippa-Luisa, 2021. "The accelerating effect of institutional environment unfamiliarity on subsidiary portfolio expansion in a new host country," International Business Review, Elsevier, vol. 30(3).
    4. Zhang, Yanlong & Zhao, Wei & Ge, Jianhua, 2016. "Institutional duality and political strategies of foreign-invested firms in an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 451-462.
    5. Newburry, William & Zeira, Yoram & Yeheskel, Orly, 2003. "Autonomy and effectiveness of equity international joint ventures (IJVs) in China," International Business Review, Elsevier, vol. 12(4), pages 395-419, August.
    6. Lawton, Thomas C. & McGuire, Steven M., 2001. "Supranational governance and corporate strategy: the emerging role of the World Trade Organization," International Business Review, Elsevier, vol. 10(2), pages 217-233, April.

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