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Filling a colonial void? German business strategies and development assistance in India, 1947–1974

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  • Julian Faust

Abstract

Decolonisation after World War II posed a threat to foreign businesses, when newly independent governments sought more national control over the economy. This article analyses cases of German multinational enterprises (MNE) in India. Focusing on companies from different sectors it analyses how these MNEs dealt with risks associated with tighter regulation of the economy and economic nationalism. German corporate nationality quickly became an asset that was used to position subsidiaries in India against foreign competitors. In the following years ‘Indianisation’ strategies for management and networks of German and Indian employees added security to long-term business interests. Carefully created Indo-German nationality of the companies reduced liabilities of foreignness. Furthermore, aligning with West German development assistance helped to strengthen the position of German private companies. These findings support the existing argument for a multi-faceted view on liabilities of foreignness and their quickly changing nature.

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  • Julian Faust, 2022. "Filling a colonial void? German business strategies and development assistance in India, 1947–1974," Business History, Taylor & Francis Journals, vol. 64(9), pages 1684-1708, December.
    • Handle: RePEc:taf:bushst:v:64:y:2022:i:9:p:1684-1708
    DOI: 10.1080/00076791.2020.1802428
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    Cited by:

    1. Bucheli, Marcelo & DeBerge, Thomas, 2024. "Multinational enterprises’ nonmarket strategies: Insights from History," International Business Review, Elsevier, vol. 33(2).

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