The determinants of MNE subsidiaries' political strategies: Evidence of institutional duality

Amy Hillman, William P. Wan

Research output: Contribution to journalArticle

227 Scopus citations

Abstract

In this study, we develop and test a model of the determinants of political strategies used by foreign subsidiaries of multinational enterprises (MNEs). Using recent theoretical advances in institutional theory that recognize that MNE subsidiaries are confronted with pressures for isomorphism within the corporation (internal legitimacy) and within the host country (external legitimacy), we integrate international business and political strategy literatures to create a multilevel model of subsidiary, host country and parent determinants of political strategy. Our hypotheses are tested using survey and archival data from Western European subsidiaries of US MNEs.

Original languageEnglish (US)
Pages (from-to)322-340
Number of pages19
JournalJournal of International Business Studies
Volume36
Issue number3
DOIs
StatePublished - May 1 2005

Keywords

  • Institutional theory
  • MNE coordination
  • Political strategies

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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