Country capabilities and the strategic state : How national political institutions affect multinational corporations’ strategies
This journal provides a framework to take account of how governments’ organizational capabilities and countries political institutional structures affect multinational corporations’ (MNCs’) international strategies and organizational structures. Two reasons why this framework adds a relevant set of new elements to contemporary business strategy paradigms. First , recent academic interest in the contributions of country capabilities to home firm competitiveness has not, as yet ,including firm or state strategic interaction. Second , strategy researchers focused on conflict models of international firm or state interaction , in which changing preferences and relative bargaining power allow host governments to shift policies toward MNCs .Consequently ,governments abilities to implement industrial strategies are largely predetermined by state organizational structures ,national political institution , and society’s expectations regarding the appropriate economic role of the public sector.
Political institution and strategic interaction between states and MNC
Industrial strategy affects an MNC’s strategy when it causes the firm to take actions that depart from its previously established strategic criteria .Many government policies that may seem to meet such a condition really do no. For example , governments often use financial incentives to influence MNCs’ facilities location plan and so on. We regard strategic capabilities as properties of state organizations placed at the disposals of national government . This journal regard national institutional arrangement concern property right allocations between countries’ public and private sectors , and interorganizational transactions allocations between authoritative planning and market institutions of governance . The basis of governments’...