Research has made great strides in understanding how and why organizational actors use the past. So far, scholars have largely focused the level of analysis on the organization, without exploring the intertwined nature of historical claim-making with the organizational field or society at large. This article extends the status quo by conceptualizing the role of context for organizational uses-of-the-past. It identifies three key aspects of context that shape how history contributes to the social construction of reality: the existence of multiple audiences, the landscape of pre-existing historical narratives and the experience of social practices giving credibility to historical claims.
By analysing the historical case of German business in colonial India, the paper makes three broader claims that could move research toward a more contextualized conception of the uses-of-the-past: (i) historical claims are validated in a continuous dialogue with multiple audiences; (ii) they revise previously existing narratives by critiquing or ‘outpasting’, i.e. invoking earlier origins; (iii) they often result in ‘rhetorical frictions’ that require continuous and skilful history revisions to mitigate emerging conflicts in their reception. By contextualizing the uses-of-the-past in this way, the paper moves beyond ‘hypermuscular’ organizational actors bending history to their will and foregrounds the situated nature of historical rhetoric.
Research Summary
We explore multinational strategy formation in the context of rising economic nationalism. Specifically, we examine how firms develop strategies to capitalize on the historical and aspirational attributes of national identity. Analyzing the histories of two German multinationals in late colonial India, we find that these firms engaged in “geopolitical jockeying” to delegitimize rival multinationals and position themselves as complementary to the economic and political goals of the host nation. Toward that end they employed “aspirational political practices,” addressing the inherently future‐oriented character of nationalism, and invested in the development of political capabilities to gather information and shape perceptions of national contexts. The paper contributes to a more robust conceptualization of nations and nationalism and their role in the formation of international competition and strategy.
Managerial Summary
Rising economic nationalism can create political and economic opportunities as well as threats for multinational firms. Through a historical analysis of the emerging strategy of two German companies—Siemens and Bayer—in late colonial India, we show how firms can engage in “geopolitical jockeying” to delegitimize rival multinationals and position themselves as complementary to the economic and political goals of host nations. To do so the companies engaged in “aspirational political practices,” addressing the inherently future or goal‐oriented aspects of nations, and created political capabilities designed to both gather intelligence on and shape the nationalist movements. The paper uses history as a mirror for reflecting on the causes and consequences of economic nationalism for international strategy in our own time.
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