Business as usual? : the new role of multinational corporations in host countries with inadequate institutions. Case study of BP in Azerbaijan
Abstract
The present thesis is a contribution to increase knowledge about public-private partnerships in
the field of international business, and specifically about partnerships that are stirring into
governance issues of the host country. The main theme of the thesis is how a multinational
corporation (MNC) and a host government can implement a successful collaboration that aims
to promote capacity building in the host country. The case of study is BP in Azerbaijan. It
investigates the background and the circumstances that led to the partnership between BP and
its host government in Azerbaijan. The thesis resulted into four main findings: (1) the societal
background and the morality and virtue of a multinational determine its decision to engage
into private-public partnership for capacity building; however the authors did not find enough
evidence to affirm that it also stands from the host government’s point view. (2) The MNC
and the host government are more willing to engage in partnership if the expected valueadded
and contributions of the cooperation exceed the disadvantages created by the current
governance failure. (3) Protection of its investment seems to be a stronger driver for the
company to enter a public-private partnership aiming at capacity building rather than the wish
for stability in the host country. And (4) high bargaining power coupled with a persuasive
influence act more as stronger driver in engagement to partnership than the support from the industry.
Description
Masteroppgave i økonomi og administrasjon - Universitetet i Agder 2011