Home Country Institutions and MNEs’ Strategic Purpose in Least Developed Economies

Mohammad B. Rana, Matthew Allen, Jiajia Liu

Research output: Contribution to conference without publisher/journalConference abstract for conferenceResearchpeer-review

Abstract

Much research focuses on the determinants of foreign direct investment (FDI) into least developed economies, typically comparing macro-level factors. However, despite a desire among least developed economies to attract ‘quality inward FDI’ (iFDI), only a relatively limited number of studies have focused on the links between quality iFDI and the socio-economic benefits to the host country. Those studies that do exist tend to adopt a quantitative approach, comparing macro and/or sectoral level factors, and downplaying how individual firms interact with local organizations in the host economy. We draw on the comparative capitalisms literature to examine how country-of-origin macro-level institutions that influence the purpose of two pharmaceutical companies shape how those firms engage with host-country organizations. We find that the home country institutions help to inform the density of the ties that the two MNEs forge with local organizations, and, correspondingly, the level of benefits that the MNEs bring to the host economy.

Original languageEnglish
Publication date28 Feb 2023
Publication statusPublished - 28 Feb 2023
Event AIB UK & Ireland Chapter Conference
“International Business and SDG 8 – Are we on course?”
13 – 15 April 2023, Adam Smith Business School, University of Glasgow
- University of Glasgow, Glasgow, United Kingdom
Duration: 13 Apr 202315 Apr 2023
Conference number: 49
https://www.aib-uki.org/

Conference

Conference AIB UK & Ireland Chapter Conference
“International Business and SDG 8 – Are we on course?”
13 – 15 April 2023, Adam Smith Business School, University of Glasgow
Number49
LocationUniversity of Glasgow
Country/TerritoryUnited Kingdom
CityGlasgow
Period13/04/202315/04/2023
Internet address

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