Antecedents and Performance Consequences of Subsidiaries' Political Activities in Emerging Markets: An Institutional Approach

Stefan Heidenreich, Jonas F. Puck, Phillip C. Nell

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

    Abstract

    This paper analyzes antecedents of political activities deployed by MNC subsidiaries in emerging markets and subsequently examines their effect on subsidiary performance. Following institutional theory reasoning, we point towards institutional duality subsidiaries are confronted with, entailing isomorphic pressures stemming from their internal as well as their external environment. Our hypotheses are tested using a three-stage least squares method with data from 156 subsidiaries in emerging markets. Results contribute to theory by providing evidence on the effects stemming from internal vs. external isomorphic pressures on political activities, and delivering a deeper-level understanding of the latter relationship by differentiating the higher-level concept of external isomorphic pressures into pressures from national public and national private stakeholders. Finally, we find significant support for a positive effect of political activities on subsidiary performance, revealing strong implications for practitioners.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Pages124
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume54
    ISSN2078-4430

    Cite this

    Heidenreich, S., Puck, J. F., & Nell, P. C. (2012). Antecedents and Performance Consequences of Subsidiaries' Political Activities in Emerging Markets: An Institutional Approach. In S. Feinberg, & T. Kiyak (Eds.), Proceedings of the 54rd Annual Meeting of the Academy of International Business (pp. 124). Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 54 http://aib.msu.edu/events/2012/AIB2012_ConferenceProceedings.pdf