No abstract

In this study, we develop and test a model of the determinants of political strategies used by foreign subsidiaries of multinational enterprises (MNEs). Using recent theoretical advances in institutional theory that recognize that MNE subsidiaries are confronted with pressures for isomorphism within the corporation (internal legitimacy) and within the host country (external legitimacy), we integrate international business and political strategy literatures to create a multilevel model of subsidiary, host country and parent determinants of political strategy. Our hypotheses are tested using survey and archival data from Western European subsidiaries of US MNEs. Journal of International Business Studies (2005) 36, 322–340. doi:10.1057/palgrave.jibs.8400137

The development of the field of strategic management within the last two decades has been dramatic. While

This study incorporates the external environmental context into the study of corporate acquisitions by examining the performance implications of corporate acquisitions during an environmental jolt that alters the levels of environmental munificence. We posit that compared to the periods before and after an environmental jolt, corporate acquisitions during a jolt would be positively related to firm performance. Furthermore, we suggest that organizational slack would improve firm performance and accentuate the positive relationship between corporate acquisitions and firm performance during an environmental jolt; however, it would have negative impact on firm performance and make the acquisition‐performance relationship more negative before and after a jolt. Using the Asian Economic Crisis as a natural experiment, we found general support for our core arguments based on a sample of firms from Hong Kong and Singapore. Our work demonstrates that firms can capitalize on the opportunities created by the changes in an environmental jolt. Copyright © 2009 John Wiley & Sons, Ltd.

 Environmental differences among countries are often assumed away in strategy research. In particular, the unique contexts of the emerging economies have not been considered adequately in extant research. I bring country environmental contexts to the foreground and conceptualize various types of economies (developed economies, emerging economies, institution-driven high growth emerging economies, and factor-driven high growth emerging economies) as dissimilar types of country resource environments that provide firms with country resources: factors and institutions. To compete successfully, firms will find it more optimal to emphasize appropriate firm capabilities (market capabilities and non-market capabilities) and corporate diversification strategy (product and international diversification). By integrating insights from institutional economics and resource-based view, this paper offers a conceptual framework to examine the multifaceted relationships linking firm capabilities and corporate diversification across dissimilar country resource environments.