Bargaining Power Models

  1. Multinational Enterprises tend to adopt political strategy in negotiating favorable market entry or expansion conditions in host countries, especially in distractive industries ( such as oil, gas ang mining industries)

Through reviewing different bargaining power models such as the one tier, the two tier, and the modified one tier bargaining power models; discuss

  1. Factors that may change the bargaining relationships between foreign Multinational Enterprises (MNEs) and host country governments.
  2. Implication of changing bargaining power for political risks faced by foreign MNEs.
  3. Despite of the risks of political strategies, there are benefits of them.

 References

EIA. (2015) Kazakhstan. Available at: https://www.eia.gov/beta/international/analysis_includes/countries_long/Kazakhstan/kazakhstan.pdf.

*EY. (2014) Kazakhstan oil and gas tax guide. Available at: http://www.pakpasinvestmentholdings.com/23.EMBAREFINERY/0.EMBA%20REFINERY%20SPECIAL%20LIBRARY/2.AUX%20EDITIONS/EY-Kazakhstan_oil_and_gas_tax_guide_2014.pdf.

Fagre N and Louis TW. (1982) Bargaining power of multinationals and host governments. Journal of International Business Studies (pre-1986) 13: 9-23.

*Kraemer R and Van Tulder R. (2009) Internationalization of TNCs from the extractive industries: A literature review. Transnational Corporations 18: 137-156.

Lecraw JD. (1984) Bargaining power, ownership, and profitability of transnational corporations in developing countries. Journal of International Business Studies (pre-1986) 15: 27-43.

*Li J, Newenham-Kahindi A, Shapiro DM, et al. (2013) The two-tier bargaining model revisited: theory and evidence from China’s natural resource investments in Africa. Global Strategy Journal 3: 300-321.

*Ramamurti R. (2001) The obsolescing ‘bargaining model’? MNC-host developing country relations revisited. Journal of International Business Studies 32: 23-39.

Boddewyn JJ. (2015) Political aspects of MNE theory. In: Cantwell J (ed) The Eclectic Paradigm: A Framework for Synthesizing and Comparing Theories of International Business from Different Disciplines or Perspectives. London: Palgrave Macmillan UK, 85-110.

 

Bucheli M and Kim M-Y. (2012) Political institutional change, obsolescing legitimacy, and multinational corporations. Management International Review 52: 847-877.

 

Cuervo-Cazurra A and Genc ME. (2011) Obligating, pressuring, and supporting dimensions of the environment and the non-market advantages of developing-country multinational companies. Journal of Management Studies 48: 441-455.

 

Doh J, McGuire S and Ozaki T. (2015) The Journal of World Business Special Issue: Global governance and international nonmarket strategies: Introduction to the special issue. Journal of World Business 50: 256-261.

 

Hadjikhani A, Lee J-W and Ghauri PN. (2008) Network view of MNCs’ socio-political behavior. Journal of Business Research 61: 912-924.