Business as Usual? : The new role of MNCs in host countries with inadequate institutions. Case study of BP in Azerbaijan.

This work is a contribution to increase knowledge about public-private partnerships (PPP) in international business. It focuses on partnerships that are stirring into governance issues of the host country: how a MNC and a host government can implement a successful collaboration that aims to promote capacity building in the host country. The case of study is BP in Azerbaijan. It investigates the background and the circumstances that led to the partnership between BP and its host government in Azerbaijan. The thesis resulted into four main findings: (1) the societal background and the morality and virtue of a MNC determine its decision to engage into PPP for capacity building. (2) The MNC and the host government are more willing to engage in partnership if the expected value-added of the cooperation exceed the disadvantages created by the current governance failure. (3) Protection of its investment seems to be a stronger driver for a MNC to enter a PPP aiming at capacity building rather than the wish for stability in the host country. (4) High bargaining power coupled with a persuasive influence act more as stronger driver in engagement to PPP than the support from the industry.