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In this article, we provide a critique and re-specification of international business and institutional literature related to the interactions of multinational corporations (MNCs) and institutions. Drawing from research in economic sociology and political economy, we offer a novel perspective on MNCs’ influence on transnational institution building...
Context in source publication
Context 1
... the other end, issue networks are loose, issue-based, coalitions that include large numbers of participants with asymmetrical resource endowments, irregular access, and who frequently argue not only over policy options but even values. We synthesize the main characteristics of these two ideal-types in Table 1. ...
Citations
... However, the emergence and proliferation of a global corporate and private elites may impact the legitimacy of multistakeholder initiatives because of the disproportionate influence elites can exercise (Henriksen and Seabrooke, 2021). Corporate actors may gain elite status via simultaneous involvement in multiple policy networks (Carroll and Carson, 2003), allowing them to assume the power to coordinate, and thus influence, policymaking across policy issues and geographic domains (Dahan et al., 2006). Within this broader approach the recent emergence of literature on professional networks (Seabrooke and Henriksen, 2017) is insightful for our analysis because it recognises the limits of participation within these networks and the reliance on professional experts who switch between public, private and third sector organisations (Christensen, 2021;Seabrooke and Tsingou, 2021). ...
As sustainable finance has entered the mainstream, it has become an area of contestation among civil society, political and business. In response, policy makers seek to resolve stalemates and enhance legitimacy by utilising multistakeholder, consensus-driven approaches to policymaking. In this paper, we examine these emergent ‘cooperative’ structures from a network analytic perspective. Our structural analysis is based on six national and three EU policy spaces. We conduct compositional analyses to explore the makeup of the network(s) and use a range of centrality measures to capture emerging elites. We find an increase in civil society participation in these policy spaces over time; however, financial firms and pro-business voices remain dominant players. We also find a small cluster of elite actors from a range of stakeholder groups. We conclude that the increasing structural balance of stakeholder interests, however, does not translate into power for civil society to alter the direction of policymaking, but appears to serve enhancing the legitimacy of a policy process that departs from the priority and aspirations of civil society organisations.
... This has led to the establishment of LCA networks by academia, industry, and public institutions (Bjørn et al. 2013). LCA networks can be described as "issue-based networks," i.e., coalitions of actors that aim to induce change by collective action (Dahan et al. 2006), where the network acts to reinforce its members' collective benefit towards the issue at hand (Ritvala and Salmi 2010). The networks aim to share information and enhance the coordinated use of LCA among different stakeholders, with the final aim of improving the practice of environmental impact assessment of products and systems. ...
Purpose
National LCA networks have been supporting the mainstreaming of LCA practice in around a hundred countries. The purpose of this paper is to discuss the factors which contribute to the continuity and relevance of LCA networks as LCA practice becomes more mainstream. This paper addresses the following research questions: what factors enabled the establishment of LCA networks and how is their relevance maintained? How do LCA networks maintain operational continuity? In-depth interviews with national LCA networks were conducted and thematically analyzed. The results analyze the factors contributing to the establishment of LCA networks, as well as offering a unique insight into the factors affecting their relevance over time and contributing to maintaining their operational continuity. While previously LCA networks focused mainly on raising awareness of life cycle approaches, now, they are moving towards providing a coordinated influence on policies and stakeholders. LCA is no longer only an academic method; it has become mainstreamed in business sectors. By offering diverse activities and networking possibilities, LCA networks remain attractive for their members who are willing to pay a membership fee, which secures their long-term viability. The driving force for starting LCA networks was individual experts with an interest in the topic. The formal establishment of the networks allowed greater budgetary resources and, thus, the ability to carry out a broader set of activities that are relevant for different groups of stakeholders. The role of LCA networks both as a learning platform as well as an influential interface between different organizations makes them relevant over time.
... Early IB researchers explicitly recognized the importance of MNC-government relationships both at home and abroad (Aharoni & Baden, 1977;Robinson, 1981;Vernon, 1971; for a reflection see Westney, 2021). They were particularly interested in political risk in host countries and bilateral bargaining between MNCs and host country governments (Dahan, Doh, & Guay, 2006;. Both Dunning's ownership-location-internalization framework and Rugman and Verbeke's framework of firm-and country-specific advantages conceptualize the political environment as a critical dimension of location (Dunning, 2009;Dunning & Lundan, 2008a, b;Rugman, 1981Rugman, , 1996Rugman & Verbeke, 1992. ...
... Since the early 2000s researchers have called for recognizing and modeling actors such as nongovernmental organizations (Doh & Teegen, 2002;Teegen, Doh, & Vachani, 2004) and policy networks (Dahan et al., 2006), including multilateral institutions like the IMF and the WTO (Ramamurti, 2001). This trend is reflected in theoretical extensions of the OLI framework around the same time. ...
How has international business (IB) research evolved to account for the politicization of the context in which multinational corporations (MNCs) operate? To address this question, we review research at the nexus of location, politics, and the MNC from 2000 through 2021. Rooted in classic IB theories, our review reveals three directions in current IB research: (i) expansion of MNC agency in shaping the political environment, (ii) a wider diversity of actors involved in the business–government–society interface, and (iii) extension of the levels of analysis from country level to sub- and supra-national levels. This three-fold evolution has moved IB research closer to the field of political geography, but the shift has remained largely implicit and its theoretical linkages are few. Drawing on key theoretical insights from political geography, we discuss the opportunities and challenges of bringing political geography into IB research.
... Foreign firms generally attempt to adapt to local institutions to overcome the -liability of foreignness‖ and obtain legitimacy in the host markets (Kostova and Zaheer, 1999;Dahan et al., 2006). They also typically try to shape the local business environment in their favor (Boddewyn, 1988;Hillman and Hitt, 1999). ...
... In recent decades, the literature has increasingly acknowledged the role of multinational companies, and consequently of inward FDI, in influencing the institutional framework of host countries, to such a degree that MNEs have sometimes been defined as -agents of change‖ (Kwok and Tadesse, 2006;Neffke et al., 2018), -agents of economic transition‖ (Malesky, 2009), and -institutional entrepreneurs‖ (DiMaggio, 1988;Dahan et al., 2006). Multinationals can often shape local business environments because they generally exert more political influence (typically over public officials) than domestic firms for two main reasons. ...
... Additionally, foreign investors may collaborate with local firms and policymakers by providing information on laws adopted in other recipient countries, actively collaborating with local actors in the provision of services (see Section 2.2.2), and creating or participating in policy networks within transnational social and economic systems. Dahan et al. (2006Dahan et al. ( , p.1578) define a policy network as a -self-organizing group that coordinates a growing number of public (decision-makers) and private (interest groups) actors for the purpose of formulating and implementing public policies‖. They also provide several examples of international organizations that can be described as policy networks, such as the Transatlantic Business Dialogue, the World Commission on the Social Dimension of Globalization, and the Global Climate Change Coalition. ...
Domestic institutions are recognized as important factors in attracting foreign direct investment (FDI), and spurring economic development in host countries. There is increasing evidence, however, that FDI may in turn affect and shape domestic institutions, and it is generally difficult to disentangle these two effects. The present paper aims to shed light on this issue using extensive data on the quality of institutions and on inward FDI in 102 countries over a period of 25 years. We distinguish between different types of institution, FDI, and country, and we adopt a panel vector autoregression (VAR) approach to identify the direction of causality between the two variables. Our findings suggest that the quality of institutions matters for attracting FDI, but also that higher inflows of FDI have a significant short-term impact on the institutional quality of recipient economies. We also find that such a relationship varies with the type of FDI considered, and differs between transition and developing economies.
... Particularly in emerging markets, the suspicion with which host communities often view foreign firms makes it necessary for MNEs to demonstrate a very visible philanthropic engagement (Eden & Miller, 2004;Kostova & Zaheer, 1999), both to establish their commitment to providing material help and to allay concerns regarding their lack of local sensitivity (Zhang & Luo, 2013). Second, MNEs operate in multiple markets and thus are less vulnerable to a change in the economic environment of a single host country (Dahan et al., 2006;Geppert et al., 2006). This relative immunity from immediate financial distress makes them less concerned about the viability of the corporation, and hence freer to provide monetary support (Christmann & Taylor, 2001; also see Patten, 2008). ...
... The continued engagement will provide a further feedback benefit, enabling the firm to develop a deeper understanding of the concerns of local audiences and maintain an avenue for ongoing engagement (Mishina et al., 2012), providing opportunities to continue to diminish LOF. Thus, as the intense need for immediate relief by the community is replaced by an expectation of longterm institutional development (Barton, 1969), MNEs will continue to respond through philanthropic contributions at a higher level than before the disaster (Child & Tsai, 2005;Dahan et al., 2006;Khanna & Palepu, 2013). ...
This study examines how philanthropy can mitigate liability of foreignness (LOF) in the aftermath of a national disaster. A major disaster restructures the social landscape, creating an avenue for corporate contributions to play a role in recovery and relief efforts. This social restructuring offers a valuable opportunity for multinational enterprises (MNEs) to establish strong local ties. In turn, MNE contributions at such times have a stronger impact on their local acceptance. Thus, MNEs can use these events to strengthen their position in the community and mitigate LOF. Using the context of a national disaster in India, I test these arguments with a sample of 190 MNEs and 660 domestic firms. I found that in the aftermath of the disaster, the increase in MNE contributions was much larger and less strongly tied to promotional activities than the increase in contributions from domestic firms, and this difference persisted over time. Moreover, the performance implication of post-disaster philanthropy was stronger for MNEs than for domestic firms. These findings suggest that philanthropy plays a more strategic role for MNEs in the aftermath of a disaster and it has a pronounced effect on mitigating LOF.
... Nevertheless, the case of HIV/AIDS does reveal ways in which business can contribute to both the development of supportive policies for employees, including educational and training programs (Kohl et al., 1990) as well as participation in transnational policy networks (Dahan et al., 2006), and the research and development of new vaccines and treatments. Certainly, the role of business should be scrutinized, but its potential for positive social benefit in facing health challenges should not be overlooked. ...
Considering the urgency of addressing grand challenges that affect human health and achieving the ambitious health targets set by the United Nations’ Sustainable Development Goals (SDGs), the role of business in improving health has become critical. Yet our systematic review of the business-health literature reveals that business research focuses primarily on occupational health and safety, healthcare organizations, and health regulations. To embrace the health externalities generated by business activities, we propose that future research should investigate the conditions under which business (i) articulates and participates in health challenges, (ii) engages in multilevel actions towards tackling health challenges, and (iii) improves health outcomes and its impact on the health of external stakeholders including customers and local communities. We also urge business scholars to engage with the public health research community to increase impact.
... That is, the internationalisation of firms has been argued to normally occur first, followed by an interest in generating a 'social licence to operate' in specific host countries, which subsequently causes firms to initiate greater CSR development (Godos-Díez et al., 2018;Mithani, 2017;Pant & Ramachandran, 2017). Highly internationalised firms may wish to perform more CSR activities not only because they attract more visibility and scrutiny from international media and other non-governmental organisations (NGOs) (Hah & Freeman, 2014) but also due to the greater amount of slack resources that may be available to them (Dahan et al., 2006) and the larger amount of risk they face if industrial accidents were to occur (Laudal, 2011). Thus, while much of the prior research in this area has focused on how internationalisation impacts CSR (Attig et al., 2016;Bondy & Starkey, 2014), ours is one of the few studies that have recently focused on the extent to which domestic CSR impacts internationalisation, especially for EMNEs (Agnihotri & Bhattacharya, 2019a;Fiaschi et al., 2017). ...
Emerging-market multinational enterprises (EMNEs) are, on the one hand, investing in both developed and developing countries aggressively. On the other hand, they are facing greater pressures from their home and host countries to operate in a socially responsible manner. In this paper, combining institutional theory with strategic perspectives on corporate social responsibility (CSR), we argue that EMNEs spending on CSR more intensively in their domestic context are likely to have a greater scope of internationalisation. We also argue that this effect decreases for government-owned EMNEs and increases when EMNEs target developed host markets or institutionally stronger emerging markets. Our data used to test our hypotheses are based on a sample of 686 Indian firms. Our findings provide support for most of our arguments, and we contribute to a greater understanding of the relationship between CSR and internationalisation.
... Given corporations' orientations, strategies and goals, and their significant means to achieve those goals, corporates seek to exert direct influence on the legal, tax, institutional and policy environments in which they operate (Geppert et al., 2006;Held et al., 2001;Ripken, 2019;Rubery et al., 2014). Dahan et al. (2006) have argued that organisations actively attempt to shape their institutional environment and macro-level policymaking and outcomes. Geppert et al. (2006) assert that MNEs are 'actively involved in the development of transnational standards and regulation' (p.1453; see also Flohr et al., 2010), but point out that transnational implementation of corporate management structures and practices also plays a role in forging the 'global institutional environment' (p.1455; see also Saint-Martin, 2013). ...
Fathers’ use of parental leave is a crucial policy issue in relation to gender equality and at the root of gendered caring norms and unequal divisions of labour throughout the life course. Using comparative mixed methods and a framework that conceptualises parenting as gendered and performative (Butler, 1999), this research contributes knowledge of the influence on fathers’ parental leave decisions of three dimensions of norms: policy, discourse and cultural norms; workplace cultures; and peer and family group norms. I compare the effect of social norms on the decisions made by fathers working for the same multinational firm in three countries: the UK, Sweden and Portugal. I argue that a Butlerian understanding can help answer the question frequently posed in the literature: why, when we know couples have egalitarian intentions prior to the birth of a first child, do couples slip back into conservative gender roles once the child has arrived (Fox, 2019; Grunow and Veltkamp, 2016; Miller, 2011)? I provide a comparative backdrop to the three focus countries, to contextualise the path dependencies underpinning the enabling parental leave policy and culture in Sweden and the contradictory and ambiguous parental leave policies and cultures in the UK and Portugal. I use data from the 2017 wave of the European Values Study to demonstrate the differences in attitudes towards gender roles between the three countries. I find that overall, Sweden holds the most egalitarian values, followed by the UK, and then Portugal, where the data reflects ‘normative ambiguity’ (Wall, 2015). I then theorise the extent to which each of the three domains of norms shaped fathers’ use of leave in the three countries, through analysis of qualitative data collected in 45 interviews with fathers. I argue that the widespread normative support for gender equality embedded in Swedish culture, alongside the enabling policy framework first introduced in 1974, contributed to the existence of a robust ‘citation’ (Butler, 1993) for fathers’ use of parental leave entitlements, which cannot fully exist in Portugal and the UK under the current discursive and material conditions. My argument, via a Butlerian critique of regulation that posits parental leave policy frameworks as both regulated by and regulating gender, thus contributes to the body of work foregrounding the centrality of non-transferable leave entitlements to fathers’ use of leave. At work, despite conducting interviews with fathers at the same firm in each country, organisational culture was highly divergent between the nations. Bringing organisational culture studies together with Butler’s performative ontology of gender, I thus theorise organisational culture as gender regulation and conceptualise the ‘performative breadwinner’, articulating the inability of many of the fathers to cease reproducing the masculine ‘ideal worker’ norm. The micro-level insights documented demonstrate how fathers’ everyday experiences are shaped by cultural backdrop, peer behaviour and forms of social constraint that form the choice architecture that shapes individual decisions. The research offers an original, granular account of the iterative process through which ‘father-friendly’ leave entitlements, combined with discursive changes, contribute to wider uptake of leave entitlements, and how shifts in norms over time are made possible – or not – through citationality.
... An MNE's influence will be a function of its economic power: control over a global value chain means that the MNE is a critical contributor to local economies in terms of jobs and employment, while the MNE retains high bargaining power due to the threat of relocating activities (Levy, 2008). The MNE's influence will also come from political power in the network due to its position centrality and its control of resource flows in the network (Dahan et al., 2006;Rizopoulos & Sergakis, 2010), making them critical intermediaries in the governance of a certain issue (Abbott et al., 2012). ...
Scholars of international relations and international political economy have long documented international business diplomacy (IBD) as a practice of multinational enterprises (MNEs), although the specific practices involved have not been consistently established in international business scholarship. We apply "practice theory" to position IBD within the realm of MNEs’ global non-market strategy (NMS), arguing that IBD constitutes a set of practices in the implementation of global NMS, and that the most appropriate practices depend upon two key dimensions of the global institutional governance regime faced by the MNEs: the governance level and the degree of rule formality.
... Nevertheless, the case of HIV/AIDS does reveal ways in which business can contribute to both the development of supportive policies for employees, including educational and training programs (Kohl et al., 1990) as well as participation in transnational policy networks (Dahan et al., 2006), and the research and development of new vaccines and treatments. Certainly, the role of business should be scrutinized, but its potential for positive social benefit in facing health challenges should not be overlooked. ...
Business and human health are intrinsically connected. From occupational health and healthcare policy to the health of consumers and the surrounding communities, business can only thrive if their stakeholders enjoy good health and well-being. Yet our literature review of the business-health crossroads reveals that scholars have mainly paid attention to internal stakeholders, such as employees, and healthcare policies as they directly affect business, while overlooking the impact of business on the health of external stakeholders such as consumers and communities. Considering the urgency required to improve health globally and the ambitious health targets set by the United Nations’ Sustainable Development Goals (SDGs), we propose an overdue research agenda for the post-pandemic era. We recommend moving from a mere liability approach to a social connection approach of health responsibility that acknowledges human health as a grand challenge. This paradigm change recognizes business as a key actor to achieve the SDG health targets.
