Handbook of Research on International Strategic Management
Show Less

Handbook of Research on International Strategic Management

  • Elgar original reference

Edited by Alain Verbeke and Hemant Merchant

The Handbook provides an impressive state-of-the-art overview of the international strategic management field as an area of scholarly inquiry. The great strength of the work is the thoughtfulness of the messages conveyed by the expert team of authors.
Buy Book in Print
Show Summary Details

Chapter 23: Reconceptualizing the MNE–development relationship: the role of complementary resources

Jonathan P. Doh and Jennifer Oetzel

Extract

There is substantial controversy regarding the impact of multinational enterprises (MNEs) on host country development, particularly in less developed countries (LDCs). This controversy has generated substantial debate, not only in academia but among those engaged in international development, finance and global governance. On the one hand, some researchers have a positive view about the impact of MNEs on developing countries. MNEs are important actors, they argue, for promoting economic growth since they transfer technology and management skills, increase competition, stimulate entrepreneurship and have access to capital (Caves, 1974; Lowe and Kenney, 1999; Teece, 1977; Rugman, 1981). On the other hand, another group of researchers is more pessimistic, suggesting that MNEs are more likely to crowd out local firms, use technology that is inappropriate for local circumstances, actively constrain potential technology spillovers and reduce (rather than complement) the domestic capital stock and tax basis due to transfer price manipulation and excessive profit repatriation (De Backer and Sleuwaegen, 2003; Görg and Greenaway, 2002; Haddad and Harrison, 1993). Debate about the impact of MNEs on developing countries is not limited to economic effects alone. There has also been extensive research on the potentially damaging effects of MNE activity on host country society (Baran, 1957) and the natural environment (Daly, 1993; Clapp and Dauvergne, 2005). Scholars have argued that MNEs operating in developing countries may have inadequate safety standards, pollute the host country environment, employ child labor and create sweatshop conditions in their factories (Daly, 1993; Korten, 2001; Clapp and Dauvergne, 2005).

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.