Nongovernmental organizations (NGOs) have emerged as major actors in international business. NGOs have assumed a particularly prominent role in influencing the interaction between business and governments over the terms of international business rules, norms, and practices, especially the...

In this paper, we examine the effect of nongovernmental organizations (NGOs) on the transaction costs multinational enterprises (MNEs) assume in their nonmarket social development strategies. We develop propositions to predict the effect of three important aspects of the institutional context on...