Isabelle Garcia
Research Mentor: Steven Samford
Mentor Department: Organizational Studies, LSA
Author(s): Isabelle Garcia, Steven Samford
Session: Session 4 (1:00 PM – 1:50 PM)
Presentation Type:
Abstract
Recent trends suggest that multinational corporations (MNCs) are increasingly investing in host-country politics–particularly in Mexico. Our research explores how MNCs are shifting from passive structural power (exercised through market influence) to instrumental power; instrumental power is characterized by direct political engagement, such as lobbying, campaign financing, or media participation. Building on the work of Brian Palmer-Rubin and Steven Samford, this study examines whether MNCs use trade associations as intermediaries to shape policy outcomes in Mexico’s economic landscape. To investigate this, we have compiled a dataset of trade associations affiliated with CONCAMIN (Mexico’s largest business confederation). Using Mergent Intellect, we have gathered quantitative information on member composition and financial size. These data sets were analyzed using R to identify relationships between MNC presence, total sales, and association structure. Additionally, qualitative data is currently being collected through surveys and interviews to assess how trade associations facilitate MNCs’ political influence. This study aims to advance understanding of how MNCs engage in the political economies of developing countries. So, by analyzing the relationship between MNCs and trade associations, we seek to uncover whether corporations utilize these associations to pursue favorable policy outcomes. Preliminary findings reveal that MNCs often represent a significant share of total sales within trade associations; this suggests that they may wield considerable influence in politics. While final results are still forthcoming, evidence suggests that MNCs use trade associations as proxies for direct political engagement.
