Nonmarket strategies and behaviours for MNEs to build a congenial political economic environment in Mainland China Online publication date: Fri, 25-Jan-2008
by Yongqiang Gao
International Journal of Business Environment (IJBE), Vol. 2, No. 1, 2008
Abstract: Successful investing in China requires investors to master a complex political and regulatory environment. Three basic theories – institutional theory, resource dependency theory and agency theory – are useful to explain why and how Multinational Enterprises (MNEs) take nonmarket strategies and behaviours to deal with a host government. Based on these theories, this paper proposes three basic strategies, namely, guanxi strategy, competitive strategy and leverage strategy, for MNEs to deal with the Chinese government and build a congenial political economic environment. The reasons why these strategies are valid and how to use them are also discussed.
Online publication date: Fri, 25-Jan-2008
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Environment (IJBE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org