Peer conformity, attention, and heterogeneous implementation of practices in MNEs

Durand, Rodolphe; Jacqueminet, Anne

doi:10.1057/jibs.2015.21

Cited by 89 publications

(68 citation statements)

References 65 publications

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“…As the world's largest ESG rating agency (Durand & Jacqueminet, , p. 924), Thomson Reuters offers objective, comprehensive and systematic ESG data and investment analysis tools for professional investors to integrate ESG information into their investment analyses and portfolios (Cheng et al, ). This study focused on Korean MNEs publicly listed in the KOSPI, the main stock exchange market of South Korea and covered by Thomson Reuters ESG scores from 2002 to 2014.…”

Section: Methodsmentioning

confidence: 99%

Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

Park

2018

Bus Strat Env

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Based on theories of attention and institution, this paper examines how the internationalization of emerging market multinationals (EMNEs) affects their corporate sustainability (CS). A contrasting perspective with respect to the dual effects of internationalization on sustainability strengths (being good) and sustainability concerns (being bad) is developed. On one hand, it is argued that internationalization improves CS strengths because EMNEs that rely on foreign sales are motivated to adopt CS as a global business norm. Such norm‐conformity overcomes the liability of origin and legitimacy challenge in foreign markets. On the other hand, it is contended that internationalization also increases CS concerns because subsidiaries of EMNEs are susceptible to being decoupled from the headquarters' CS policy. The results show that internationalization can be both good and bad for CS. Thus, it can be misleading to simply say that there is either a positive or a negative relationship between internationalization and CS.

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Section: Methodsmentioning

confidence: 99%

Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

Park

2018

Bus Strat Env

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“…Additionally, research could examine how the practice of CSR reporting adapts and evolves, as it becomes institutionalized in emerging markets. Such research could contribute to our understanding of how local actors transform practices to fit their specific settings as they diffuse across national borders (Czarniawska & Sevón, 1996Durand & Jacqueminet, 2015).…”

Section: Limitations and Future Researchmentioning

confidence: 99%

Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises

2017

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This article examines the link between the condition of institutional voids in emerging markets and the use of the practice of corporate social responsibility (CSR) reporting by emerging market multinational enterprises (EM-MNEs). Based on neo-institutional theory and in light of the specificity of emerging markets, we propose a positive relationship between institutional voids and CSR reporting. Home-country institutional voids push companies to internationalize as a way to escape the institutional constraints and inefficiencies in their own markets, but at the same time create legitimacy challenges for these companies abroad. In particular, EM-MNEs from less institutionally developed countries are likely to face liabilities of origin -negative perceptions in host countries about these firms' willingness and ability to conduct legitimate business. CSR reporting is an effective strategy to overcome such liabilities and barriers to legitimation as it conveys to host countries and global stakeholders alignment with global metanorms and expectations. Internationalization, listing on developed country stock exchanges, and time, further magnify EM-MNEs' legitimacy challenges and thus the use of CSR reporting to mitigate them. Our hypotheses are supported in a longitudinal study of 157 of the largest EM-MNEs ranked by the United Nations

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“…We also contribute to the literature applying institutional theory to the study of MNCs (e.g., Kostova and Roth, ; Kostova and Zaheer, ; Nell et al, ). First, we find empirical evidence for the proposition made by Durand and Jacqueminet () that MNC subsidiaries might try to address conflicting demands with ‘recourse to a range of responses beyond practice implementation, such as compromise, avoidance, defiance, or manipulation’ (Durand and Jacqueminet, : 931). Indeed, while most of the literature applying institutional theory to the study of MNC subsidiary reactions to conflicting demands has considered decoupling and (non‐)compliance (see Egels‐Zandén, ; Kostova and Roth, ), we show that when internal (external) pressures for conformity (non‐conformity) with the headquarters' demands are high, subsidiaries are likely to follow compromise or selective coupling to satisfy both internal and external actors.…”

Section: Discussionmentioning

confidence: 69%

“…In particular, complying with a demand from the headquarters that conflicts with the local institutional context means that the subsidiary will face more difficulties in reaching and/or maintaining legitimacy with its local environment and vice versa . Thus, when subsidiaries are faced with conflicting institutional demands, they often adopt responses other than simple (non‐compliance (Durand and Jacqueminet, ; Kostova and Roth, ; Nell, Puck, and Heidenreich, ). Alternative organizational responses to conflicting institutional demands include compromise, manipulation, decoupling, selective coupling, and non‐compliance (see the overview in Table ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…We follow Kostova, Roth, and Dacin () by integrating ideas from both new and old institutionalism (see also Hirsch and Lounsbury, ) and showing that instead of static fields, we observe dynamic ones that are the product of continuous interactions. We also provide empirical support for the proposition made by Durand and Jacqueminet () that MNC subsidiaries might try to accommodate internal and external actors with responses other than compliance.…”

Section: Introductionmentioning

confidence: 97%

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The Dynamic Response Process to Conflicting Institutional Demands in MNC Subsidiaries: An Inductive Study in the Sub‐Saharan African E‐Commerce Sector

Holm

Decreton

Nell

et al. 2017

Global Strategy Journal

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Research Summary How do subsidiary managers react when their headquarters' managers make requests that conflict with the local environment in which the subsidiary operates? Using data from a subsidiary based in Sub‐Saharan Africa and headquartered in Europe, we show that subsidiary managers need more time than usually expected to react to headquarters' demands. Subsidiary managers sometimes postpone or test headquarters' demands before deciding how to respond to them. In addition, subsidiary managers can implement headquarters' demands in ways that do not fit the expectations from the headquarters or local actors (e.g., customers and suppliers), thus resulting in additional delays. Headquarters managers must be aware that implementation can take longer than they anticipate, particularly for subsidiaries located in environments that differ substantially from the environment of the headquarters. Managerial summary In this article, we examine responses to the conflicting institutional demands faced by an e‐commerce subsidiary located in Sub‐Saharan Africa and headquartered in Europe. Following an inductive approach, we gathered data from a six‐month participant‐observation study and interviews with local managers. Our findings show that the subsidiary managers responded to conflicting institutional demands in a dynamic way, taking one response after the other. In some cases, the subsidiary managers responded in a way that they thought would be satisfactory, but subsequent pressures from their headquarters or their local environment pushed them to adopt a new response. In other cases, the subsidiary managers intentionally adopted responses knowing they would (have to) adopt another response later in the process. Copyright © 2016 John Wiley & Sons, Ltd.

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Peer conformity, attention, and heterogeneous implementation of practices in MNEs

Cited by 89 publications

References 65 publications

Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises

The Dynamic Response Process to Conflicting Institutional Demands in MNC Subsidiaries: An Inductive Study in the Sub‐Saharan African E‐Commerce Sector

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