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This study aims to clarify the factors that act as a buffer to rent extraction from multi-national corporations (MNCs) in exchange relationships with the host country’s political actors.

This study proposes a conceptual model of the factors that determine rent extraction by host country political actors from MNCs. The model identifies the sources of power the MNC can use to alleviate the power imbalance relative to the political actor to decrease rent extraction. Additionally, it identifies the factors that constrain the power-advantaged political actor, thus moderating the relationship between power imbalance and rent extraction.

This conceptual paper’s propositions remain for future empirical validation.

This study integrates insights from the international business literature and resource dependence theory (RDT) to identify the determinants of firm-specific rent extraction risk for MNCs. First, the model sheds light on the heterogeneity among MNCs in their susceptibility to rent extraction and their ability to manage their liability of foreignness in the host country. Second, by integrating the horizontal and vertical distribution of power in the political environment to analyze the power-dependence relationship between the MNC and host country political actors, the framework addresses a shortcoming of RDT and accounts for the dynamics of the external environment for MNCs managing their dependencies. This study also provides a basis for discussing the rent extraction MNCs face worldwide and lays the foundation for future empirical works.

The purpose of this study is to examine the effect of entrepreneurial competencies on competitive advantage and to investigate the effect of competitive advantage on the performance of informal microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia.

This study used a cross-sectional design and collected quantitative data from 384 informal women micro-entrepreneurs operating in “night markets” in Kelantan, Malaysia.

The finding of the analysis using variance-based structural equation modeling indicated that commitment competency, conceptual competency, organizing competency and opportunity recognition competency have a significant positive effect on competitive advantages, and competitive advantages have a significant positive effect on the performance of microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia.

The development programs and policies should focus on improving the competencies, i.e. commitment competency, conceptual competency, organizing competency and opportunity recognition competency to improve the socioeconomic condition of low-income households in Malaysia. Informal women micro-entrepreneurs should, therefore, focus on value creating strategies to avoid potential competitors from duplicating the benefits of their strategy. This will result in a sustainable competitive advantage of microenterprises in Malaysia.

This study puts forward and tests the effect of entrepreneurial competencies on competitive advantages and performance of informal women micro-entrepreneurs in Kelantan, Malaysia, which provides a foundation for the design and implementation of development programs and policies that promote entrepreneurial activities in Malaysia.