Institutional Repository

Social capital in multinational enterprise : host government relations a South African perspective

Show simple item record

dc.contributor.advisor Smit, A.J.
dc.contributor.advisor Erasmus, R. Du Toit, Francois 2011-03-23T06:48:43Z 2011-03-23T06:48:43Z 2010-03
dc.identifier.citation Du Toit, Francois (2010) Social capital in multinational enterprise : host government relations a South African perspective, University of South Africa, Pretoria, <> en
dc.description.abstract In South Africa Multinational Enterprises (MNEs) have to contend with the typical adversarial relations with a host government. In addition, MNEs operate in an environment regulated by a government policy of Redress, aimed at changing the wealth profile of the country to reflect the ethnic demographics. Policies such as Broad Based Black Economic Empowerment, Affirmative Action and Preferential Procurement are interventionist and place additional burden on the MNEs. Implementations of these regulations are often the source of conflict between MNEs and the local government. Ethno-cultural distance aggravates the strained relations between the MNE and host government. The policy of Redress effectively legislates the incorporation of local third parties that are ethno-culturally related to government into the competitive strategies of MNEs. Joint ventures with locals are an acknowledged strategy to enter foreign markets, providing for legitimisation and access to networks. The choice in strategy when dealing with the home government of either a relational or transactional approach is transferable to the MNE host government environment. Political levels have proven to be inaccessible but successful business transactions with government are abundant. The transactional approach dominates as a result of the failure to establish any relations with the host government, negating the pursuit of the relational approach. Third parties play an enabling role in successful transactions, ranging from providing access to government employees up to securing the deal and transacting with the MNE at arms-length. The absence of any social capital in successful transactions requires re-evaluation of the role of social capital in bridging barriers in business relations. Possible explanations are in the linking that the social capital of the third party with the government and MNE employees respectively has, an extremely low threshold for social capital in successful transactions, the force exerted by the need for the products or services, or, most probable, the profit motive. The distance between the government and MNE is extreme as a result of the historical strife between the ethnic groups in the country and the policy of Redress. The connotation with the social environment deters the active pursuit of social capital to gain competitive advantage. en
dc.format.extent 1 online resource (x, 344 leaves)
dc.language.iso en en
dc.subject Socialising en
dc.subject Social capital en
dc.subject Transactional approach en
dc.subject Multinational Enterprise en
dc.subject Ethno-cultural distance en
dc.subject Business-government relations
dc.subject Host government
dc.subject Relational approach
dc.subject Third party relations
dc.subject.ddc 338.8
dc.subject.lcsh Industrial policy
dc.subject.lcsh Globalization
dc.subject.lcsh International business enterprises
dc.title Social capital in multinational enterprise : host government relations a South African perspective en
dc.type Thesis en D.B.L.

Files in this item

This item appears in the following Collection(s)

  • DBL Theses [57]
  • Unisa ETD [8966]
    Electronic versions of theses and dissertations submitted to Unisa since 2003

Show simple item record

Search UnisaIR


My Account