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


    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
    EventAustralia and New Zealand International Business Academy Conference. ANZIBA 2012 - University of South Australia City West Campus, Adelaide, Australia
    Duration: 12 Apr 201214 Apr 2012


    ConferenceAustralia and New Zealand International Business Academy Conference. ANZIBA 2012
    LocationUniversity of South Australia City West Campus
    Internet address

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