Theorizing MNE-NGO conflicts in state-capitalist contexts

• Published in: Journal of World Business
• Main Authors: Villo, Sofia, Halme, Minna, Ritvala, Tiina
• Other Authors: Higher School of Economics, Sustainability in Business, Department of Management Studies, Aalto-yliopisto, Aalto University
• Format: Article in Journal/Newspaper
• Language: English
• Published: Elsevier Inc. 2020
• Subjects: MNE-NGO conflict; State capitalism; Corporate social (ir)responsibility; The Arctic; Institutional pressures; Arctic; Boxing
• Online Access: https://aaltodoc.aalto.fi/handle/123456789/42071; https://doi.org/10.1016/j.jwb.2019.101068

This paper theorizes development of MNE-NGO-state conflicts in state-capitalist contexts. We draw on longitudinal data from the Arctic oil drilling dispute between environmental NGOs headed by Greenpeace, and Gazprom, the Russian energy giant. We propose a theory that introduces two concepts: shadow-boxing and homeostasis. In shadow-boxing, escalation of visible action by NGOs is met with a seemingly separate but concerted response by the MNE and state bodies. In homeostasis, the contested corporate activity continues undisturbed after the escalated conflict. Beyond state capitalism, these concepts have explanatory power in settings where the corporations and the state are intertwined in various ways. Peer reviewed