Multinational Corporations, Property Rights, and Legitimization Strategies: US Investors in the Argentine and Peruvian Oil Industries in the Twentieth Century

Marcelo Bucheli, Gonzalo Romero Sommer

Research output: Contribution to journalArticlepeer-review

Abstract

Multinational corporations in the extractive sector have historically faced challenges to their property rights, particularly in oil. International business scholars argue that firms can decrease these challenges by approaching domestic legitimating actors or seeking home government support. Through a study of the operations of Standard Oil of New Jersey in Peru and Argentina in the twentieth century, we find that these legitimating strategies can backfire due to two main elements: first, the multinational might approach actors with a different agenda from those defining, delineating, and enforcing property rights. Second, host countries can use home government support to multinationals to delegitimise foreign firms' operations.

Original languageEnglish (US)
Pages (from-to)145-163
Number of pages19
JournalAustralian Economic History Review
Volume54
Issue number2
DOIs
StatePublished - Jul 2014

Keywords

  • Argentina
  • Economic nationalism
  • Peru
  • Property rights
  • Standard Oil Company of New Jersey

ASJC Scopus subject areas

  • History
  • Economics and Econometrics

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