Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry
Abstract
Whereas conventional wisdom holds that multinational enterprises (MNEs) invest less in host countries that pose greater policy risk—the risk that a government will opportunistically alter policies to expropriate an investing firm's profits or assets—we argue that MNEs vary in their response to host-country policy risk as a result of differences in organizational capabilities for assessing such risk and managing the policy-making process. We...
Paper Details
Title
Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry
Published Date
Apr 7, 2010
Journal
Volume
31
Issue
12
Pages
1290 - 1315
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