Diplomatic and corporate networks: Bridges to foreign locations

Li, Jing; Meyer, Klaus E.; Zhang, Hua; Ding, Yuan

doi:10.1057/s41267-017-0098-4

Cited by 180 publications

(150 citation statements)

References 102 publications

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“…Quadrant 2 represents the literature on indirect business diplomacy in which companies lobby their home government to put pressure on host country governments to alter their institutions. For example, firms may use the power of their home country government to get preferential rules and resolve disagreements with host countries (Duanmu, ; Li et al, ). In regional economic integration agreements, high‐tech companies from advanced economies have led their home countries to obtain stronger property rights protection in emerging economies (Sell, ).…”

Section: Institutions and Global Strategy: Bidirectional Relationshipmentioning

confidence: 99%

Clarifying the relationships between institutions and global strategy

Cuervo-Cazurra

Mudambi

Pedersen

2019

Global Strategy Journal

106

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Research summary We review the relationships between institutions and global strategy and explain several clarifications for future research. First, studies need to clarify the standard used to assess quality in institutional dimensions they research rather than let readers assess them from the measures. Second, analyses need to specify the theoretical approach used, which may be based on the paradigm from a single discipline (economics, sociology, politics, psychology) or the integration of underlying disciplines, as often seen in management. This must form the basis of a consistent set of assumptions rather than a potpourri of arguments from incompatible logics. Third, investigations need to clarify the direction of relationship and mechanisms. On the one hand, studies on the impact of institutions on strategy should clarify the institutional influences used (adapt, appeal, avoid). On the other hand, research on the effect of strategy on institutional change should clarify the institutional strategies (inform, influence, incentivize) and institutional spillovers (compete, command, copy) by which firms change institutions. Managerial summary The study of institutions (controls of the behavior of individuals and firms) has become a popular topic analyzed in global strategy. Unfortunately, there is some confusion on how institutions affect the global strategy of firms because of differences in the viewpoints used to explain the relationships. We clarify past arguments by explaining the need to identify the standards used to assess quality in institutions, and the assumptions of approaches based on underlying disciplines (economics, sociology, politics, or psychology) as well as those that integrate these disciplines like in management. We also explain the mechanisms by which institutions affect the global strategy of firms (adapt, appeal, avoid), as well as the mechanisms by which global strategies influence the transformation of institutions via institutional strategies (inform, influence, incentivize) and institutional spillovers (compete, command, copy).

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Section: Institutions and Global Strategy: Bidirectional Relationshipmentioning

confidence: 99%

Clarifying the relationships between institutions and global strategy

Cuervo-Cazurra

Mudambi

Pedersen

2019

Global Strategy Journal

106

View full text Add to dashboard Cite

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“…For example, Li, Newenham‐Kahindi, Shapiro, and Chen () examine how intergovernmental agreements create infrastructure projects in the host country (in Africa, in their study) for which the home country (China) not only arranges the funding but selects suitable contractors. More generally, Li et al () argue that CPC at home help firms access diplomatic networks, which generates a number of potential advantages for the well‐connected investors and, thus, makes it more likely a host country with strong diplomatic ties is chosen for an investment project.…”

Section: Cpc and Global Strategymentioning

confidence: 99%

“…In such a context, CPC in the host country may be an effective channel of obtaining political and social legitimacy in a foreign environment (Hillman & Wan, ). For example, home country CPC may help firms connect to intergovernmental diplomatic networks and, thereby, attain legitimacy in some foreign locations (Li et al, ). But, strong CPC in the home country can magnify legitimacy deficits in host countries that have ideological or political conflicts with the home country.…”

Section: Cpc In International Business: a Literature Reviewmentioning

confidence: 99%

“…Such movement of individuals is common in many countries. For example, in the U.S., former government officers are sought after for corporate boards (Lester et al, ), while in China, boards often include individuals who also serve in the national party congress or the Chinese People's Political Consultative Committee (e.g., Li et al, ; Liang, Ren, & Sun, ; Zheng et al, ). Scholars frequently use such movements of individuals to proxy the existence of CPC.…”

Section: Contextualizing Cpc Research: a Focus On Political Systemsmentioning

confidence: 99%

“…As such, CPC can be deployed for influence strategies, be they legal (e.g., lobbying) or illegal (e.g., corruption). CPC have been shown to enhance, in many circumstances, organizational legitimacy (Li, Meyer, Zhang, & Ding, ; Sheng, Zhou, & Li, ), competitive advantages (e.g., Brockman, Rui, & Zou, ; Frynas et al, ; Siegel, ; Yan & Chang, ), and survival (Zheng, Singh, & Mitchell, ).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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Research Summary: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature, along with the articles in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context‐specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other nonmarket strategies, and configurational analysis of the multidimensional context of CPC. Managerial Summary: Multinational companies not only compete in a market environment, they engage with political actors in both their home and host societies. This special issue brings together research that explores how companies use their corporate political connections (CPC) to achieve firm objectives. Each study takes a different approach to studying the phenomenon, informed by the national context of their empirical data. Together, these studies highlight the importance of CPC around the world. However, the variation in research approaches also highlights that the “how and why” of companies' development and utilization of CPC vary across cultures and political systems. In consequence, the development of managerial recommendations always needs to carefully consider the pertinent political context of the available empirical evidence.

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How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals

et al. 2020

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Corporate sustainability (CS) is receiving considerable attention from emerging market multinational enterprises (EMNEs), playing an important role in the globalized market. However, theoretical and empirical knowledge about how EMNEs address CS is still scant, and the relationship between internationalization and CS has not been widely explored. This study aims to fill this gap, evaluating the relationship between an international ambidexterity strategy and CS in EMNEs, which highlighted the paradox perspective. Then we develop three hypotheses in which we argue how the dynamic capabilities underpinning international ambidexterity could be considered a driver of CS in EMNEs. We test the developed hypotheses against data from 300 Chinese EMNEs obtained by a survey. Our results contribute to shape ambidextrous international strategies and to consider CS as a springboard for the strategic intent to systematically and recursively outperform global competition. Testing a measurement scale of international ambidexterity, we suggest structural ambidexterity as a strategic option of internationalization that allows the achievement of economic, social, and environmental sustainability objectives.

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Diplomatic and corporate networks: Bridges to foreign locations

Cited by 180 publications

References 102 publications

Clarifying the relationships between institutions and global strategy

Clarifying the relationships between institutions and global strategy

Corporate political connections in global strategy

How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals

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