Buffered or under Scrutiny? Disentangling the Effect of Size on Subsidiary Political Strategies

Patricia Klopf, Phillip C. Nell, Jonas Puck

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    This paper investigates political strategies of MNE subsidiaries operating in emerging markets. Our findings support previous findings of more intense political strategies in the presence of stronger institutional pressures from public and private stakeholders. Furthermore, we hypothesize a contradicting effect of subsidiary size. First, larger subsidiaries are more visible and thus more under scrutiny and need to invest more into political strategies when they face stakeholder pressures. Second, however, their size may allow them to react less strongly to stakeholder pressures – they are to a stronger extent buffered from the external environment than small firms. Thus, this paper adds to previous research by disentangling the complex effects of size on the use of political strategies – a strand of literature which has been characterized by inconsistent findings in the past.
    Original languageEnglish
    Publication date2016
    Number of pages28
    Publication statusPublished - 2016
    EventGlobal Strategy & Emerging Markets Annual Conference. GESEM 2016 - University of Miami, Miami, United States
    Duration: 6 Jan 20168 Jan 2016
    http://www.bus.miami.edu/faculty-and-research/ciber/conferences-events/GSEM%20Abstracts%20-%20January%206-8,%202016/index.html

    Conference

    ConferenceGlobal Strategy & Emerging Markets Annual Conference. GESEM 2016
    LocationUniversity of Miami
    CountryUnited States
    CityMiami
    Period06/01/201608/01/2016
    SponsorCenter for International Business Education and Research (UM CIBER)
    Internet address

    Bibliographical note

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    Cite this

    Klopf, P., Nell, P. C., & Puck, J. (2016). Buffered or under Scrutiny? Disentangling the Effect of Size on Subsidiary Political Strategies. Paper presented at Global Strategy & Emerging Markets Annual Conference. GESEM 2016, Miami, United States.