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.
- Economic nationalism
- Property rights
- Standard Oil Company of New Jersey
ASJC Scopus subject areas
- Economics and Econometrics