Title

Multinationals in China: Responding to Host Government Pressures

Document Type

Article

Publication Date

1998

Publication Title

European Management Journal

First Page

91

Last Page

99

DOI

http://dx.doi.org/10.1016/S0263-2373(97)00077-7

Abstract

Government pressures are thought to influence multinational companies' strategies. This study analyzes central government pressures regarding MNCs in China since 1990, particularly the pressures concerning operational modes utilized by foreign companies investing in China. The methodology utilizes in-depth interviews of MNC executives and government officials from the United States, Scandinavia, and China. The results indicate that the Chinese government has ratcheted up the pressure on MNCs to produce and source locally and that some MNCs are facing intense pressure to lobby their own governments on behalf of China. This article also provides insights for managers into government workings and provides practical suggestions on how to deal with governments.

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