Antecedents and Performance Consequences of Subsidiaries’ Political Strategies in Emerging Markets: An Institutional Approach

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

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    This paper analyzes antecedents and performance consequences of political strategies deployed by MNC subsidiaries in emerging markets. 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 three-stage least squares with detailed data from 156 subsidiaries in emerging markets. Results contribute to theory by differentiating effects from internal vs. external isomorphic pressures on political strategies. We also deliver a deeper level of understanding of the latter relationship by differentiating the general 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 strategies on subsidiary performance in emerging markets, revealing strong implications for practitioners.
    Original languageEnglish
    Publication date2012
    Number of pages38
    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

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Heidenreich, S., Puck, J. F., & Nell, P. C. (2012). Antecedents and Performance Consequences of Subsidiaries’ Political Strategies in Emerging Markets: An Institutional Approach. Paper presented at AIB 2012 Annual Meeting, Washington, United States.