Institutionalization Theory and the Multinational Corporation

Westney, D. Eleanor

doi:10.1007/978-1-349-22557-6_3

Cited by 338 publications

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“…Beyond external institutional pressures, firms form internal institutions based on the internally accepted organizational routines, structures and standards (Kostova & Zaheer, 1999;Westney, 1993). For firms who are separate from the external institutions, their internal institutions and self-interests may conflict with the expectations of external institutions, which then lead to varied firm responses (Kostova et al, 2008).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Firms also vary in their abilities to gain institutional legitimacy without being isomorphic. Firms who can create a positive image (as perceived by institutional constituents) about the firms' internal routines, structures and norms can gain legitimacy through negotiation (Kostova et al, 2008;Westney, 1993); whereas firms whose images are negatively perceived will be more subject to isomorphic pressures due to the lack of an alternative legitimizing mechanism. Based on these consequences of political affiliation, we contend that state ownership can influence firms' responses to external institutional pressures, or in other words, state ownership moderates the effects of external institutional pressures on firms' FDI ownership decisions.…”

Section: Introductionmentioning

confidence: 99%

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State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

2012

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

2012

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“…As escolhas de estratégia internacional e dos países para onde se internacionalizam são, então, uma resposta estratégica às pressões institucionais (Henisz, 2000). A respeito da escolha dos mercados externos, Westney (1993) notou que as multinacionais de automóveis japonesas preferem investir em regiões nos EUA onde a institucionalização da indústria norte-americana de automóvel é fraca ou não existente. Nessas regiões, há menores níveis de sindicalização e um grande número de desempregados receptivos a aprender novas práticas, procedimentos, modos de organização do trabalho, etc.…”

Section: Ambiente Institucional E As Emnsunclassified

Abordagem Conceitual às Estratégias de Internacionalização sob Pressões Institucionais Duais para Legitimidade e Conformidade

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2015

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Internacionalizar as operações requer que as empresas multinacionais (EMNs) desenvolvam estratégias capazes de lidar, simultaneamente, com as pressões institucionais externas, para a legitimidade, e as pressões institucionais internas, para a conformidade. Neste artigo conceitual e baseado na literatura de teoria institucional em negócios internacionais, desenvolve-se um conjunto de proposições teóricas sobre quais as estratégias de entrada nos mercados externos seguidaspelas EMNs face aosambientes institucionais. Com foco predominante no ambiente institucional externo e nas diferenças de desenvolvimento institucional, também aborda a relevância de considerar o ambiente interno. As estratégias de entrada tendem a ser baseadas em modos de baixo envolvimento e em parcerias, como jointventures, para entrar em países institucionalmente imaturos ou institucionalmente mais distantes.As aquisições e as parcerias podem ser usadas se as pressões institucionais forem menores. Conclui-se com uma discussão geral e o apontamento de questões para pesquisas futuras.

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“…Since the MNE is situated both in its country of origin and, through its subsidiaries, in a number of other locations, it operates under multiple, possibly conflicting institutional pressures. Thus, MNEs are confronted with the pressure for global integration to achieve internal consistency on the one hand and the need for a local orientation to achieve local external legitimacy on the other (Westney, 1993;Kostova, 1999;Kostova and Roth, 2002). Oliver (1991) has argued that institutional approaches underplay the role of agency and has attempted to identify the strategic responses of organizations operating under such diverse conditions.…”

Section: Institutional Pressuresmentioning

confidence: 99%

Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?

2007

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We explore determinants of subsidiary autonomy in setting HRM practices within US parented MNEs, in Europe and Australia. We examine both the effect of strategic context, and the effect of the institutional location of the subsidiary. We find that US MNEs show greater centralization of control over HRM where the subsidiary faces global markets, in coordinated market economies versus liberal market economies, and where union density is low.Keywords: International HRM, subsidiary management, neo-institutional theory, strategic context, centralized control, multinationals 3 HRM IN US SUBSIDIARIES IN EUROPE AND AUSTRALIA: CENTRALIZATION OR AUTONOMY?Although an important source of competitive advantage for multinational enterprises (MNEs) may lie in their ability to deploy organizational and management capabilities worldwide, many MNEs have chosen, for strategic reasons, to concede considerable autonomy to their subsidiaries in designing their own management systems (Kostova and Roth, 2002;Noorderhaven and Harzing, 2003;Myloni et al., 2004). As Harzing (2000) has demonstrated, subsidiary autonomy in human resource management (HRM) is a feature of MNEs that are generally classified as multi-domestics; that is, MNEs whose subsidiaries have domestic mandates involving a local market scope accompanied by considerable latitude to engage in local product modification and local adaptation of marketing.On the other hand there are those, such as Birkinshaw and Hood (1998), who view subsidiary autonomy as not only determined by the relationship of the head office to its subsidiaries, but also by the nature of the local institutional environment in which the subsidiary operates. They argue that the nature of local legal conditions, the cultural environment, and the influence of the local authorities will all impinge on the degree to which subsidiaries have local control over their HRM systems.The aim of this paper is to combine these two perspectives by simultaneously examining the effects of the strategic role of the subsidiary and the institutional environment in which the subsidiary is located, in relation to the degree of centralization of control of HRM policies imposed by corporate headquarters. We examine the influence of the strategic role of the subsidiary in the sense of whether it has a purely local market orientation or whether it serves international markets. At the same time we investigate the impact of the environment in which the subsidiary is located by differentiating between the response of the MNE to the broad institutional setting at the level of national business systems (Whitley, 1992;Lane, 1992;Sorge, 1995;Foss, 1999;Hollingsworth, 2003;Redding, 2005) in which the subsidiary is located and, separately, the impact of labor unions on MNEs' ability to exert centralized control (e.g., Ortiz, 1998;Giardini et al., 2005;Singe and Croucher, 2005).We argue that US MNEs operate in relation to host country environments on the basis of both "economic rationality" and "normative rationality" (Oliver, 1997). ...

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Institutionalization Theory and the Multinational Corporation

Cited by 338 publications

References 0 publications

State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

Abordagem Conceitual às Estratégias de Internacionalização sob Pressões Institucionais Duais para Legitimidade e Conformidade

Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?

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