Antecedents and Outcomes of Political Tie Intensity: Institutional and Strategic Fit Perspectives

White, George O.; Fainshmidt, Stav; Rajwani, Tazeeb

doi:10.1016/j.intman.2017.06.001

Cited by 52 publications

(63 citation statements)

References 96 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Multinationals are especially susceptible to engage in non-market strategies-given their large size and their exposure to foreign competition, two of the key drivers of CPS identified in the literature (Lux, Crook, & Woehr, 2011). However, most of the literature on multinationals' corporate political activity focuses on MNCs' interaction with host countries (for instance, see Hillman, 2003;Banerjee et al, 2019), while home-country institutional determinants of corporate political strategies have seen less attention (White, Fainshmidt, & Rajwani 2018;Schnyder & Sallai, forthcoming). To our knowledge, to date no study of backlash-induced CPS in the home country has been conducted.…”

Section: Corporate Political Strategymentioning

confidence: 99%

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Butzbach

Fuller

Schnyder

2020

Global Strategy Journal

View full text Add to dashboard Cite

Research Summary There is mounting evidence of a widespread popular backlash against globalization in advanced economies, which can hurt multinational companies' (MNCs) interests. In this article, we argue that MNCs are both “culprits” and “victims” of backlash against globalization. Building on the comparative capitalism literature, we argue that national institutions influence the likelihood of a backlash by either encouraging MNCs to embrace a “labor arbitrage” strategy consisting in tapping into cheap labor markets overseas or preventing them from doing so. Where institutional constraints lead firms to adopt an “upgrading” route of using domestic workers, popular backlash is less likely. Such institutional factors help to explain variation in the likelihood of backlash across countries. We also discuss the strategic options available to firms facing backlash. Managerial Summary Multinational companies are increasingly facing a backlash against globalization that, in some countries, may lead to policies that directly hurt their interests. Yet little is known about the link of this phenomenon with firm‐level strategies. In this article, we draw on comparative capitalism analysis to show that national institutions play a key role in determining the likelihood of backlash. They do so by inducing/discouraging MNCs to adopt certain strategies that expose non‐university‐educated workers to globalization pressures, influencing, in turn, the electorate's attitude toward globalization. We also present and discuss the strategic options available to firms facing backlash.

show abstract

Section: Corporate Political Strategymentioning

confidence: 99%

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Butzbach

Fuller

Schnyder

2020

Global Strategy Journal

View full text Add to dashboard Cite

show abstract

“…For example, if most papers attempt to investigate the impacts of being politically connected firms, White et al (2017) take differently in which they also investigate the antecedents of corporate political ties by focusing on the business environment. Some articles also study the link between political connections of firms and their social responsibility performance (Gu et al, 2013;Lin et al, 2015).…”

Section: Other Issuesmentioning

confidence: 99%

A Recent Literature Review on Corporate Political Connections

Trinugroho

2017

JDM

View full text Add to dashboard Cite

It has always been an interesting issue deliberating the connectedness between corporation and political power. There have been a substantial number of papers in the academic literature empirically studying what so call "corporate political connections" over the last 17 years. Using 81 papers published in 2010-2017 in finance, economics, accounting, management and other journals, in this present paper, I provide a recent literature review on firm political connections particularly with respect to the empirical studies discussing the impact of being politically connected firms. A number of issues related to the effect of political connections on corporate strategy, behaviors and outcomes have been addressed. Few other papers provide different perspective by looking at the antecedents of corporate political connections and the contingency role of such connections. Little is found on the development of new measures of corporate political connections. Finally, it could be suggested that the interaction between political connections and the technological-based business innovation would be an interesting issue to study.

show abstract

“…The corporate political activities (CPA) literature emerged in the context of developed countries (Hillman et al, 2004;Hillman and Hitt, 1999) and has little to say about how the institutional context of emerging economies affects CPA (Deng and Kennedy, 2010;Mondejar and Zhao, 2013;White et al, 2018;Zhang et al, 2016). Yet, CPA is particularly important in emerging market economies where the boundaries between the economic and the political domain are blurry (Carney et al, 2016;Luo, 2007;Nell et al, 2015;Zhang et al, 2016) and institutional change is frequent and often radical (Oh and Oetzel, 2017;Young et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…Companies may have to develop political 'coping' strategies to deal with such institutionally volatility political environments (Danisz et al, 2010;Darendeli and Hill, 2016;Dieleman and Boddewyn, 2012;Dieleman and Sachs, 2008;Iankova and Katz, 2003). Little is known about how foreign subsidiaries develop such local nonmarket strategies (Carney et al, 2016;White et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…Recent studies have shown that foreign subsidiaries' host country political strategies are to an important extent determined by their home country institutional environment (White et al, 2018). Applying the "fit paradigm" (Brouthers et al, 2000;Luo & Park, 2001;Zajac et al, 2000) they suggest that "subsidiary performance outcomes may be affected by fit between an MNE parent's capabilities, developed as a means to successfully deal with home country institutions, and foreign subsidiary strategic practices abroad" (White et al, 2018: 2).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Between a Rock and a Hard Place: Developing Organizational and Institutional Fit in MNE Subsidiary Political Strategy in Contexts of Institutional Upheaval

Sallai

Schnyder

2019

SSRN Journal

View full text Add to dashboard Cite

Recent corporate political activities (CPA) studies applying the "fit paradigm" found that foreign subsidiaries' political capabilities in emerging markets are shaped not just by host country-but also by home country institutions: Subsidiaries of multinational enterprises (MNEs) need to develop CPA that "fit" parent political capabilities. Yet, this literature neglects that this "organizational fit" requirement goes together with an "institutional fit" requirement between subsidiary CPA and the host institutional environment. Achieving this dual fit is particularly difficult in very volatile institutional host environments where the value of political capabilities changes rapidly. In such environments subsidiaries face a dilemma between the decreasing "institutional fit" of easily transferable capabilities and the lack of "organizational fit" of necessary "sticky," local ones. To understand how firms deal with this dilemma, we develop a typology of political capabilities that takes into account their varying transferability/stickiness and their dynamic institutional contingency in the host country. Our empirical study of Hungary shows that MNEs even from institutionally very different economies can successfully transfer political capabilities to develop effective CPA in a radically volatile political environment. Yet, as political risk becomes discontinuous, this strategy may reach its limits.

show abstract

Antecedents and Outcomes of Political Tie Intensity: Institutional and Strategic Fit Perspectives

Cited by 52 publications

References 96 publications

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

A Recent Literature Review on Corporate Political Connections

Between a Rock and a Hard Place: Developing Organizational and Institutional Fit in MNE Subsidiary Political Strategy in Contexts of Institutional Upheaval

Contact Info

Product

Resources

About