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.
|Number of pages||28|
|Publication status||Published - 2016|
|Event||Global Strategy & Emerging Markets Annual Conference. GESEM 2016 - University of Miami, Miami, United States|
Duration: 6 Jan 2016 → 8 Jan 2016
|Conference||Global Strategy & Emerging Markets Annual Conference. GESEM 2016|
|Location||University of Miami|
|Period||06/01/2016 → 08/01/2016|
|Sponsor||Center for International Business Education and Research (UM CIBER)|
Bibliographical noteCBS Library does not have access to the material
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.