Non-market strategies in weak institutional environments: The case of MNE subsidiaries in Cameroon

IF 5.9 2区 管理学 Q1 MANAGEMENT
Young Hoon An , Yong Kyu Lew , Zaheer Khan
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引用次数: 0

Abstract

This study seeks to understand why and how multinational enterprise (MNE) subsidiaries use non-market strategies to establish legitimacy in weak institutional environments. By adopting an in-depth qualitative approach, we explore the non-market strategies enacted by four MNE subsidiaries operating in Cameroon. We find that MNE subsidiaries endeavour to gain legitimacy and social reputation in weak institutional environments by engaging with multiple local stakeholders through corporate social responsibility and political non-market strategies. Our findings support the previous studies on emerging African markets that the host-country government remains the most critical and challenging stakeholder. However, firms experience legitimacy risks due to their strong ties with the government during periods of political and social instability. The subsidiaries mesh social with political strategies and use them as complementary strategies for developing their social reputation and gaining social license to operate in the host market, thus mitigating social and political risks from aligning with the host government. We draw implications of these findings for research and practice.

薄弱制度环境下的非市场战略:喀麦隆跨国企业子公司的案例
本研究旨在了解跨国企业(MNE)子公司为何以及如何利用非市场战略在薄弱的制度环境中建立合法性。通过采用深入的定性研究方法,我们探讨了在喀麦隆运营的四家跨国企业子公司制定的非市场战略。我们发现,在制度薄弱的环境中,多国企业子公司通过企业社会责任和政治非市场战略与当地多方利益相关者接触,努力获得合法性和社会声誉。我们的研究结果支持以往对非洲新兴市场的研究,即东道国政府仍然是最关键、最具挑战性的利益相关者。然而,在政治和社会不稳定时期,企业会因为与政府的紧密联系而面临合法性风险。子公司将社会战略与政治战略相结合,并将它们作为互补战略,以发展其社会声誉并获得在东道国市场运营的社会许可,从而降低与东道国政府结盟所带来的社会和政治风险。我们总结了这些发现对研究和实践的启示。
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来源期刊
自引率
9.80%
发文量
67
审稿时长
81 days
期刊介绍: The Journal of International Management is devoted to advancing an understanding of issues in the management of global enterprises, global management theory, and practice; and providing theoretical and managerial implications useful for the further development of research. It is designed to serve an audience of academic researchers and educators, as well as business professionals, by publishing both theoretical and empirical research relating to international management and strategy issues. JIM publishes theoretical and empirical research addressing international business strategy, comparative and cross-cultural management, risk management, organizational behavior, and human resource management, among others.
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