Summary: Strategic Management Journal
Strat. Mgmt. J., 31: 1290­1315 (2010)
Published online EarlyView in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/smj.860
Received 18 February 2009; Final revision received 29 March 2010
POLITICAL CAPABILITIES, POLICY RISK,
AND INTERNATIONAL INVESTMENT STRATEGY:
EVIDENCE FROM THE GLOBAL ELECTRIC POWER
GENERATION INDUSTRY
GUY L. F. HOLBURN1
and BENNET A. ZELNER2
*
1
Ivey School of Business, University of Western Ontario, London, Ontario, Canada
2
Fuqua School of Business, Duke University, Durham, North Carolina, U.S.A.
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 hypothesize that firms from

Source: Anisimov, Mikhail - Institute for Physical Science and Technology & Department of Chemical Engineering and Biomolecular Engineering, University of Maryland at College Park

Collections: Physics; Materials Science