Introduction to the Volume

Abstract

Purpose

Multinational corporations (MNCs) are experiencing a number of major challenges in the international business arena. Can business diplomacy help them to deal with these challenges effectively? In this introductory chapter we conceptualize and identify the relationship between MNCs’ international business diplomatic activities and firm performance.

Design/methodology/approach

We conducted a literature review and interviews with five large MNCs that are operating in distinctive industries. Business diplomatic activities have been classified into three particular areas to support the analysis, namely: (1) MNC–Non-Governmental Organization (NGO) relations, (2) MNC–Host Government relations, and (3) MNC–Local Community relations.

Findings

The main findings suggest that international business diplomacy has a direct positive effect on firm performance with regard to so-called soft or nonfinancial indicators. These indicators include knowledge sharing, reputation, company image, and marketing possibilities. The effect can in turn lead to a better financial performance and market stance in the long run.

Originality/value

The results of this study are important for the future awareness and execution of business diplomacy in large MNCs.

Citation

Ruël, H. and Suren, L. (2017), "Introduction to the Volume", International Business Diplomacy (Advanced Series in Management, Vol. 18), Emerald Publishing Limited, Leeds, pp. 3-31. https://doi.org/10.1108/S1877-636120170000018002