MNC CONTROL OVER FOREIGN MARKET VENTURES: DO HOST GOVERNMENTS STILL PLAY A MAJOR ROLE?

Abstract

While it is widely acknowledged that host governments play some role in framing the governance structure that is available to multinational corporations, some argue that in recent years the influence of host governments on MNCs in terms of the level of ownership and control over their foreign ventures has diminished. The authors examine the degree of MNC's control in foreign investment by presenting and testing a model of government influences on MNC's control over its foreign market venture. Based on a survey of U.S. MNCs, the authors find that host government preference does influence MNC's ownership control over its foreign market venture, which in turn influences its management control over the venture. © 2003.