Purpose The purpose of this paper is to improve the understanding of the dilemma of institutional duality (ID) confronting multinational corporations and to propose a workable solution for this problem. Design/methodology/approach The author has searched the literature using several terms directly related to the dilemma of ID and multinational firms. Findings The findings reveal that to attain “legitimacy”, subsidiaries strive to balance institutional pressures stemming from external environments in the host country and their parent organizations. Understanding institutional theories of multinational corporations enables the subsidiaries to manage external pressures. ID impact varies among subsidiaries, depending on institutional contexts and internal strategies of subsidiaries. Originality/value An “institutional duality incidence model” portraying how dual institutions make “legitimacy” problematic for subsidiaries is proposed. A framework for identifying factors generating ID dilemma and their management approach is also proposed. It is concluded that a multinational corporation that recognizes ID as a central concern is more likely to achieve and maintain a higher level of harmony with its subsidiaries and host countries.

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The purpose of this article is to develop a conceptual framework clarifying how firms behaviourally venture or risk through entrepreneurial innovation (EI), in the ‘contexts’ of globalisation, society, innovation users or public perceptions; we methodologically coined these ‘contexts’ as ‘4-GSIP variables’ and applied them in that order. We then examined EI literature and built on variants of its theoretical insights to describe conceptual frameworks of how innovation focus firms behaviourally deal with the contextual implications of the variables. Our frameworks also show how firms contextually and behaviourally venture through EI in line with the variables. Findings indicate that firms’ EI behaviour varies or differs across contexts (the variables) yet shared to an extent. Also, firms’ innovation behaviour is shaped by its external environment (the variables). We concluded that firms behaviourally risk through innovation by collaborating with the external variables to ensure responsible or sustainable innovations.

PurposeTo illustrate how threats of institutional duality (ID) incidence subsidiaries confront are converted to opportunities, by conceptualizing how subsidiaries attain operational legitimacy at both their headquarters (HQs) and host countries.Design/methodology/approachUsing a systematic literature review, the authors build on institutional theories by analyzing the ID literature along its structure, main processes and outcomes. The authors configure frameworks of both HQ control systems and host countries' institutional threats, showing how subsidiaries contingently navigate across them using configuration, differentiation and avoidance strategies.FindingsThe authors’ findings show that “foresighted” subsidiaries attain operational legitimacy through configuration, differentiation and avoidance of threats incidental to ID, by strategizing along certain formal and informal institutional variables including legal, sociocultural and technical factors.Originality/valueThe authors propose “structural configuration of ID incidence” and “subsidiary path to legitimacy” frameworks. The former configures how the interaction between HQ and host countries' variables constitute ID incidence threats. The latter highlights how “foresighted” subsidiaries use configuration, differentiation and avoidance strategies to attain operational legitimacy.

Purpose This paper aims to explore subsidiaries’ behavioural responses to volatile institutional pressures in the local context of the emerging Nigerian market. Design/methodology/approach The authors built on institutional and contingency theory to analyse previous literature on developed markets and apply it to African contexts. The authors used a context-specific volatile local context model to show how porous formal and strong informal institutions constitute international business (IB) as a contested terrain in the host country. The authors also used a qualitative methodology, involving multiple actors, to investigate this phenomenon in practice. Findings The findings indicated different types of institutional pressures shaping volatile local contexts, which together or separately impact subsidiaries, depending on their degree of exposure. Subsidiaries behaviourally respond to cope with these pressures through inclusive negotiations involving their home and host countries’ networks. Originality/value Previous research has imposed developed markets’ norms on emerging African markets, regardless of their volatility. As subsidiaries’ responses to local contexts in emerging African markets are poorly understood, the authors developed a volatile local context model, showing how IB becomes a contested terrain in host countries and the authors proposed a model that differentiates between informal institutions. The authors highlighted the impact of contextual pressures on subsidiaries, according to their levels of exposure to the local context. The authors concluded that committed alignment with a local context is necessary for presenting an effective contingent response to its volatilities.