In this paper, we construct a holistic framework for MNE-state bargaining based on power-dependence theory. We contribute to IB theory by moving beyond a static, bilateral conceptualization of MNE-state bargaining towards a dynamic, multi-party framework. MNEs can shift power balance in their favor by (a) reducing sunk costs from the investment (b) improving access to alternative investments (c) increasing sunk costs for the host-government or (d) impeding its access to alternative investors and buyers. Second, we apply our MNE-state bargaining framework to the case of the Venezuelan oil industry, therein identifying thirteen MNE micro-strategies to influence the power balance in their favor.
23 Apr. 2017 → 25 Apr. 2017
Journal of World Business Special Issue Conference