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Human Relations
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The role of multinational corporations in transnational institution building: A policy network perspective

Nicolas Dahan

Ramapo College of New Jersey, USA, ndahan{at}ramapo.edu

Jonathan Doh

Villanova University, USA, jonathan.doh{at}villanova.edu

Terrence Guay

Pennsylvania State University, USA, trguay{at}psu.edu

In this article, we provide a critique and re-specification of international business and institutional literature related to the interactions of multinational corporations (MNCs) and institutions. Drawing from research in economic sociology and political economy, we offer a novel perspective on MNCs’ influence on transnational institution building. We argue that MNCs seek to influence institutional development by creating or participating in policy networks within transnational social and economic systems. We describe different types of policy networks, the relative position that MNCs occupy within them, and the power MNCs yield by virtue of their position and influence within those networks. We provide examples to illustrate how MNCs exploit these network relationships to influence emergent institutions and to advance convergence in institutional policies. The policy network perspective is an effective and useful mode of analysis to understand the range of interactions among MNCs and the institutional fields in which they operate.

Key Words: epistemic community • institutional environment • MNC • policy network • policy transfer

Human Relations, Vol. 59, No. 11, 1571-1600 (2006)
DOI: 10.1177/0018726706072854


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[Abstract] [PDF]