The establishment, operation and subsequent closure of the Bougainville Copper Mine : a case study in international management

摘要

As the scope and importance of the global economy expands, the internationaludbusiness arena presents continuous challenges in the governance of multinationaludenterprises (MNEs). Chief among these challenges is the managementudof the turbulent milieu in which world commerce is conducted and, as a result,udacademic inquiry into the environmental dimensions of international managementudhas increased. The focus of this academic attention however, has beenudprimarily concerned with MNEs from developed countries (DCs) whichudestablish operations in other industrialised economies. In relative terms, thereudhas been insufficient research into DC based organisations involved in lessuddeveloped countries (LDCs). This dearth of inquiry is particularly evident in theudrapidly expanding island economies of the South-west Pacific.udAccordingly, the aim of this thesis is to extend current understanding ofudinternational management in the volatile and diverse context of LDCs. To thisudend, the management of Bougainville Copper Limited (BCL), an Australianudmining company which operated in Papua New Guinea's North SolomonsudProvince, was investigated. Using a single case study approach, inductive anduddeductive processes were applied in order to comprehend the reality of BCL'sudcomplex relationship with its host country and host society. Extant literatureudformed the conceptual framework of the study, from which the central andudsubordinate research questions were framed. Primary data were gathered fromudinterviews with past executives of BCL, with secondary material assembledudfrom company documents, published histories, news articles, PNG andudAustralian government reports and prior studies of Bougainville. A broadudverification process was instituted to ensure the rigour of the data and theudinterpretive process which followed.udThe research findings support claims in the literature that corporate performanceudis dependent upon the close alignment of elements within the internal andudexternal environments of MNEs. However, it was determined that alignmentudbecomes increasingly difficult as the business climate in the host settinguddeviates from that in the home country, and MNE activities cannot be sustainedudunder extremely divergent home-host conditions despite management's effortsudto control external and organisation-specific variables. It was further establishedudthat MNE management should focus environmental congruency on the host ·udsociety, rather than on the host country as suggested in the literature. Evidenceudfrom the research reveals that the immediate population is the most influential contextual factor for MNEs, particularly in LDCs of the South-west Pacificudwhich are typified by ethnic identity and local attachments which takeudprecedence over the abstract notion of nationhood.udThe outcomes of this thesis present a range of implications concerning theudmanagement of MNEs in LDCs in terms of policy development, managementudpractice and theory development, as well as suggesting possibilities for furtherudresearch in the subject field.