Abstract and Keywords
As a result of globalization and the rapid advancements in information availability, international firms are increasingly facing issues of transparency and avoidance of illegitimate opaque behavior. Whereas earlier studies concern either transparency or opacity independently, this chapter extends the analytical scope and conceives of them as related issues. The aim is to propose a theoretical view on transparency in the relationship between multinational companies (MNCs) and political organizations. Underpinning a continuum for transparency/opacity, the theoretical view resorts to behavioral theory and puts forward the elements of trust/distrust and legitimacy/illegitimacy for further understanding the management of transparency in this relationship. The interplay between the three concepts of transparency/opacity, legitimacy/illegitimacy, and trust/distrust are discussed and the reasoning is further demonstrated by using cases from two Swedish firms, Ericsson and Teliasonera, which are presented in the appendix.
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