Anti-Competitive Regulations and Subsidiary Relational Embeddedness Strategies

Grazia D. Santangelo, Ulf Andersson

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


    The institution-based view (IBV) of firm strategy argues that formal and informal institutions combine to govern firm behavior and suggests a predominant reliance on network-based informal relationships when formal institutions are absent or deficient. Our knowledge on how formal and informal institutions combine to govern firm behavior remains scant when formal institutions are present but show varying degrees of non-marketsupporting regulation. This issue gains great relevance for subsidiaries which in host locations have also to confront the liability of outsidership. To advance IBV, we draw on industrial organization and firm productivity literature. In particular, we propose and test a conceptual model illustrating a U-shaped relationship between the extent of anti-competitive regulation in relevant service supplying sectors and the degree to which subsidiaries embed with value chain partners. Our model also suggests that this U-shaped relationship is steeper for subsidiaries with a center of excellence role within the multinational enterprise, and that highly embedded subsidiaries are superior performers.
    Original languageEnglish
    Title of host publicationProceedings of the 55th Annual Meeting of the Academy of International Business
    EditorsPatricia McDougall-Covin, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2013
    Publication statusPublished - 2013
    EventAIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey
    Duration: 3 Jul 20136 Jul 2013
    Conference number: 55


    ConferenceAIB 2013 Annual Meeting
    LocationSabancı University, Koç University, and Özyeğin University
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings

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