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NGOs’ influence on MNEs’ social development strategies in varying institutional contexts: A transaction cost perspective |
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| Authors: | Sushil Vachani Jonathan P Doh Hildy Teegen |
| Institution: | aDepartment of Strategy and Innovation, School of Management, Boston University, 595 Commonwealth Avenue, Boston, MA 02215, USA;bDepartment of Management, College of Commerce and Finance, Villanova University, Villanova, PA 19085, USA;cDarla Moore School of Business, 1705 College Street, Columbia, SC 29208, USA |
| Abstract: | In this paper, we examine the effect of nongovernmental organizations (NGOs) on the transaction costs multinational enterprises (MNEs) assume in their nonmarket social development strategies. We develop propositions to predict the effect of three important aspects of the institutional context on how NGOs affect MNE transaction costs: institutional development, institutional distance and institutional dynamism. We also propose how these relationships are moderated by the level of civil society development in the countries in which these entities interact. We conclude with suggestions for further research. |
| Keywords: | Context Institutional development Institutional distance Institutional dynamism Multinational strategy NGO Social responsibility Transaction cost Governance |
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