scholarly journals Global oligopolistic competition and foreign direct investment

2016 ◽  
Vol 12 (4) ◽  
pp. 369-387 ◽  
Author(s):  
Michael W. Hansen ◽  
Anne Hoenen

Purpose The purpose of this paper is to re-visit and re-invigorate the oligopolistic industry perspective on multinational corporations (MNC) strategy. Design/methodology/approach Based on insights from the industrial organization tradition and strategic management, the paper brings the original insights of the oligopolistic industry perspective into a modern context by outlining a conceptual framework that may guide future international business (IB) research on MNC strategy in oligopolistic industries. Findings This paper demonstrates how contemporary IB literature pays little attention to a key insight of the early IB literature, namely, that foreign direct investment (FDI) often is driven by strategic interaction among MNCs in oligopolistic industries. Instead, the contemporary IB literature focuses on the FDI as a way to reduce transaction costs and/or as a way to leverage and build capabilities across borders. The paper argues that progressing global concentration in many industries warrants a rediscovery of the oligopolistic perspective on FDI. Originality/value The paper provides a comprehensive and unique literature review of the literature on MNC strategy in oligopolistic industries. Based on this review, the paper develops a novel conceptual framework that may inspire future IB research on MNC strategy in oligopolistic industries.

2019 ◽  
Vol 27 (3) ◽  
pp. 217-220 ◽  
Author(s):  
Jonathan P. Doh

Purpose The relationship among foreign direct investment, multinationals, inequality and growth is a vexing one that has occupied considerable scholarly and practical attention for many decades. To date, international business scholars have not fully concerned themselves with this issue (Buckley, Doh and Benischke, 2017, for an exception). This paper aims to briefly review this literature and report some of the insights of this work. The author draws from and integrates this literature, concluding that multinationals and the foreign investment that emanate from them have a generally positive impact on growth and a generally negative impact on income and wealth equality. The author then details some of the potential contributions MNEs can make to attenuate the negative relationship of foreign direct investment (FDI) on equality, concluding that governments and their policies are the primary vehicle for addressing wealth and income inequality. Design/methodology/approach This paper is an essay. Findings The relationship between inequality, growth and FDI is complex. On balance, FDI contributes to growth but may exacerbate inequality under some conditions. More research needs to be conducted, and policymakers need to carefully consider these nuanced relationships. Originality/value The paper provides review of the relationship of FDI, growth and inequality.


2020 ◽  
Vol 5 (3) ◽  
pp. 271-280
Author(s):  
Naseem H. Jamei ◽  
Mira Nurmakhanova ◽  
Shahbaz Mustafa ◽  
Alloysius Egbulonu ◽  
Wagdi Hadidan

Purpose This paper aims to focus on testing the long-run relationship between fish production and two main variables, the foreign direct investment inflow and the marine trade balance in Oman, which is one of the Arab Gulf countries, during the period 1985-2016. Design/methodology/approach This study uses what known as the two-step Engle–Granger cointegration test to give evidence for the long-run relationship among the variables. Findings The results show that there are a negative long- and short-run relations between fish production and marine trade balance; moreover, any shocks will be corrected within two periods at the most.  Originality/value This study is one of few studies in using the econometric models to study the impact of fish production on marine trade balance and foreign direct investment.


2018 ◽  
Vol 34 (4) ◽  
pp. 10-12

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This briefing looks at the strategic motives behind Chinese firms when looking to expand globally and create subsidiaries in foreign markets. Originality/value The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2016 ◽  
Vol 58 (1) ◽  
pp. 126-146
Author(s):  
Eghosa Osa Ekhator ◽  
Linimose Anyiwe

Purpose – This paper aims to explore the laws that govern Foreign Direct Investment (FDI) in Nigeria. The history of company law and the rise of multinational corporations clearly illustrate the attempts by the Nigerian Government to encourage the inflow of FDI. The different stages of Nigeria’s legal development will be examined in this paper and subsequently an assessment of the laws regulating FDI in the different investment sectors will be in focus. Design/methodology/approach – This paper uses a doctrinal approach by undertaking a sectorial analysis of different sectors or segments of the Nigerian economy highlighting their various regulatory frameworks. The agricultural, steel, banking, employment and oil sectors is focussed in this paper. Findings – This paper demonstrates that for FDI to have positive impacts on the different sectors of the Nigerian economy, the various laws regulating the different sectors should be amended to reflect current realities. Originality/value – This paper provides a fresh illumination or analysis to the legal barriers inhibiting FDI in Nigeria. It does this by highlighting the various laws affecting FDI in different sectors of the Nigerian economy.


2017 ◽  
Vol 13 (2) ◽  
pp. 166-179 ◽  
Author(s):  
Hammad ul Haq

Purpose Subsidiaries use their weight and/or voice to get attention for the initiatives they share with the headquarters. The purpose of this paper is to examine whether subsidiaries with a low weight can effectively use their voice to get the headquarters’ attention. Design/methodology/approach This paper is a combination of the attention-based view of the firm and the issue-selling literature applied to the context of subsidiaries selling their initiatives to the headquarters of a multinational corporation. Findings Subsidiaries with a low weight are trapped in a vicious circle in which they are unable to get more influence and gain a central position in the organization through the initiative-taking approach. This problem may mainly be attributed to their limited access to (or even entire lack of) direct and rich communication with the headquarters, which impedes the ability of these subsidiaries to gain knowledge about headquarters and the organization in general. As a result, low-weight subsidiaries are unable to make the correct decisions about which selling moves to use regarding initiatives that are able to capture headquarters’ attention; this inability means that they are less likely to gain approval from headquarters for implementing the proposed initiatives. Originality/value Subsidiary voice is not an accessible and effective bottom-up tool available to low-weight subsidiaries for gaining influence, which is contrary to what is claimed by extant mainstream research in international business and strategy. Hence, subsidiaries with low weight are completely marginalized from the sharing of subsidiary initiatives that takes place within multinational corporations.


2017 ◽  
Vol 25 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Jakob Lauring ◽  
Poul Houman Andersen ◽  
Marianne Storgaard ◽  
Hanne Kragh

Purpose This paper aims to identify antecedents for, and consequences of, low-intensity inter-unit conflict in multinational corporations (MNCs). Inter-unit conflict in MNCs is an important and well-researched theme. However, while most studies have focused on open conflict acknowledged by both parties, much less research has dealt with low-intensity conflicts. Still, low-intensity conflicts can be highly damaging – not least because they are rarely resolved. Design/methodology/approach The authors used a qualitative approach to understanding low-intensity conflict relying on 170 interviews in four Danish MNCs. Findings They describe consequences of low-intensity conflict and identify three types of actions by headquarters’ representatives that could lead to the development of low-intensity conflicts, namely, ignoring, bypassing and educating. Originality/value Very few studies have dealt with low-intensity conflict – not least in international business research. The authors argue that the study of low-intensity conflict in MNCs can provide relevant, novel knowledge of MNC functioning.


2017 ◽  
Vol 25 (1) ◽  
pp. 5-10 ◽  
Author(s):  
Steven Globerman

Purpose The paper aims to provide an updated broad assessment of the environment for foreign direct investment (FDI) in light of the referendum vote in the UK to exit the European Union (Brexit), the election of Donald Trump as President of the USA and growing nationalist movements in Europe. Design/methodology/approach The paper uses an essay format to set out the main issues linking recent political developments to FDI. It reviews some relevant empirical literature to assess the identified linkages. Findings It seems reasonable to argue that there will be a reduction in FDI intensity on a global basis over the foreseeable future. It is also likely that the nature of FDI will move more toward being a substitute rather than a complement to trade. Originality/value The essay is original and valuable in the sense of offering a contemporary assessment of how important the recent political events may affect the FDI process.


2018 ◽  
Vol 13 (3) ◽  
pp. 434-459 ◽  
Author(s):  
Gianluigi Giorgioni

Purpose The purpose of this paper is to provide a critical overview of the recent phenomenon of outward foreign direct investment (OFDI) from China, from a more macro and historical perspective. Design/methodology/approach The paper critically reviews the extant literature and re-assesses available data on OFDI from China. Findings It is argued that despite the explosion of academic interest the phenomenon was neither unpredicted nor sudden. Originality/value The paper also argues that OFDI from China is not yet so important and neither presents insurmountable challenges to the established literature on FDI.


2014 ◽  
Vol 52 (1) ◽  
pp. 226-227

Ramkishen S. Rajan of George Mason University reviews, “Politics and Foreign Direct Investment” by Nathan M. Jensen and et al. The Econlit abstract of this book begins: “Examines the factors that determine the attractiveness of a locale for foreign direct investment and considers the extent of investors' political power. Discusses multinational corporations and governments; democracy and the political risk of expropriation for international business; institutional determinants of foreign direct investment in the developing world; partisan governments and the distributive effects of foreign direct investment; and political institutions and the effectiveness of multinational lobbying. Coauthors are Glen Biglaiser, Quan Li, Edmund Malesky, Pablo M. Pinto, Santiago M. Pinto, and Joseph L. Staats. Jensen is Associate Professor in the Department of Political Science at Washington University, St. Louis.”


2016 ◽  
Vol 9 (3) ◽  
pp. 245-252 ◽  
Author(s):  
K.C. Fung ◽  
Lurong Chen ◽  
Alicia Garcia-Herrero

Purpose The purpose of this paper is to investigate what affects trade in parts and components, particularly for Latin America and East Asia. Design/methodology/approach The methodology includes using data analysis as well as regressions Findings The main findings show that logistics and infrastructure are among the most important determinants of supply chain trade. For Latin America to participate more in such trade, the region should attract more foreign direct investment, including direct investment from China in transportation, roads and ports as well as infrastructure in general. Originality/value This paper is among the first in the literature to conduct regression analysis on trade in parts and components.


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