The impact of multinational enterprises on public governance institutions in areas of limited statehood

Hanekom, Dirk; Luiz, John

doi:10.1108/md-11-2016-0774

Cited by 16 publications

(14 citation statements)

References 31 publications

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“…Problem 1: Narrow Scope, Broad Application Using the same corpus of articles from EBSCO, we also provide a map illustrating which countries/regions have been characterized by institutional voids. There is a clear extension of the term to cover an increasingly broad and diverse set of countries from Afghanistan (Hanekom & Luiz, 2017) to Zimbabwe (Davies & Torrents, 2017), with a particularly outsized emphasis on China. The term is even used to classify entire continents such as Africa (e.g.…”

Section: Diffusion and Conceptual Stretchingmentioning

confidence: 99%

Institutional Voids and Organization Studies: Towards an epistemological rupture

Bothello

Nason

Schnyder

2019

Organization Studies

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In this essay, we critique the usage of the term ‘institutional void’ to characterize non-Western contexts in organizational studies. We explore how ‘conceptual stretching’ of institutional voids – specifically, the theoretical and geographic expansion of the concept – has led not only to poor construct clarity, but also pejorative labelling of non-Western countries. We argue that research using this term perpetuates an ethnocentric bias by deifying market development and overlooking the richness and power of informal and non-market institutions in shaping local economic activity. We call for an ‘epistemological rupture’ to decolonize organizational scholarship in non-Western settings and facilitate contextually grounded research approaches that allow for more indigenous theorization.

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Section: Diffusion and Conceptual Stretchingmentioning

confidence: 99%

Institutional Voids and Organization Studies: Towards an epistemological rupture

Bothello

Nason

Schnyder

2019

Organization Studies

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“…The important role of institutions for economic progress has been emphasized in many studies (Hanekom & Luiz, 2017; D. Kaplan, 2008). Conflict often leads to institutional voids and multinationals are forced to engage in novel cross sector partnerships to compensate for these institutional gaps.…”

Section: Literature Reviewmentioning

confidence: 99%

State fragility and foreign direct investment: The mediating roles of human flight and economic decline

Seyoum

Camargo

2020

Thunderbird Intl Bus Rev

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Developing countries view foreign direct investment (FDI) as a vital contributor to economic growth by augmenting domestic capital and enhancing efficiency through transfer of new technology, marketing, and management skills. Even though the factors that influence FDI have been examined in the context of developing countries, the role of state fragility has been underexplored in the literature. Drawing on institutional theory, we develop hypotheses on the link between state fragility and inward FDI. Based on data from 93 fragile countries from different geographical areas, the study shows the influence of state fragility on human flight and brain drain and the role of the latter in causing economic decline. It also explores the mediating roles of human flight and economic decline in the relationship between state fragility and inward FDI flows and identifies economic decline as an important path linking state fragility and FDI.

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“…MNCs can also affect the host-country institutional quality through lobbying and exerting pressure on local governments. It is widely accepted that MNCs have long-term interests in host countries and are deeply embedded in local markets, and hence that they tend to engage in a governance process and alter the host institutional environment for their own benefit by entering the domestic political process [53][54][55]. By examining 27 transition economies, Malesky [16] notes that MNCs have the incentive to lobby the local government and to raise the probability of economic reforms carried out by the host-government.…”

Section: Theories Of Institutional Effect Of Fdimentioning

confidence: 99%

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

et al. 2020

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This article investigates the effects of China’s outward direct investment (ODI) on the institutional quality of the Belt and Road (B&R) countries. Based on a panel data set of 63 B&R countries during the period 2003 to 2016, we find that China’s ODI improves the institutional quality of B&R countries not only in the short run but also in the long run. Further, although China’s ODI exerts no differential impacts on host country institutional dimensions of “control of corruption,” “government effectiveness,” and “political stability” in countries with different natural resource endowments, it improves their institutional dimensions of “regulatory quality” and “rule of law,” implying that China’s ODI may help the host B&R countries minimize the “resource curse”. As one of the most important strategies for China’s opening-up development in the current era, the B&R initiative serves as means to promote sustainable development of B&R countries. The article therefore contributes to existing scholarship on the institutional effects of China’s ODI and sheds light on the mechanisms that drive sustainable development.

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The impact of multinational enterprises on public governance institutions in areas of limited statehood

Abstract: The views expressed are those of the author(s) and do not necessarily represent those of the funder, ERSA or the author's affiliated institution(s). ERSA shall not be liable to any person for inaccurate information or opinions contained herein.

Cited by 16 publications

References 31 publications

Institutional Voids and Organization Studies: Towards an epistemological rupture

Institutional Voids and Organization Studies: Towards an epistemological rupture

State fragility and foreign direct investment: The mediating roles of human flight and economic decline

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

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