Multinational Versus State Power in an Era of Globalization: The Case of Microsoft in China, 1987–2004

Abstract

There are two leading paradigms about the power balance between multinational corporations (MNCs) and states. The MNCs in Command approach takes the perspective that MNCs dominate states. The States in Command perspective assumes that states lord over MNCs. Each perspective suffers from noteworthy flaws. I advocate a modified bargaining power (MBP) approach to understanding the relative power of MNCs and states. I test the value of this approach by examining Microsoft's experience in China between 1987 and 2004. My study shows that that a MBP approach sheds considerable light on the aforementioned case, whereas the two leading paradigms do not.

Citation

Blanchard, J.-M.F. (2006), "Multinational Versus State Power in an Era of Globalization: The Case of Microsoft in China, 1987–2004", Choi, J.J. and Click, R.W. (Ed.) Value Creation in Multinational Enterprise (International Finance Review, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 497-534. https://doi.org/10.1016/S1569-3767(06)07021-X