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Why Do Some Multinational Firms Respond Better Than Others to the Hostility of Host Governments? Proximal Embedding and the Side Effects of Local Partnerships

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dc.contributor.authorMoschieri, Caterina
dc.contributor.authorRavasi, Davide
dc.contributor.authorHuy, Quy
dc.contributor.funderFundación Ramón Areces
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-11-26T16:30:54Z
dc.date.available2024-11-26T16:30:54Z
dc.date.issued2022-03-01
dc.description.abstractUsing a multiple-case study of alleged expropriations reported before the World Bank, we examine how multinational companies (MNC) react to the escalating hostility of host governments. Our study reveals how different choices regarding the interaction with local nonmarket stakeholders – which we refer to as proximal vs. mediated embedding – shape how managers respond to these disputes by affecting their ability to collect, process and interpret information, and to act upon it in a way that effectively mobilizes local and international support. In contrast to the prevailing view that local partners in international joint ventures shelter MNCs from abuse from political authorities, our findings show that primary reliance on local partners to manage the local nonmarket environment can actually reinforce a liability of outsidership and even create a ‘liability of insidership’, to the extent that relying on local partners prevents the MNC from establishing quality connections with a broad range of nonmarket stakeholders, reducing its alertness and responsiveness to hostile acts from host governments.
dc.description.peerreviewedyes
dc.description.statusPublished
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dc.identifier.citationMoschieri, C., Ravasi, D., & Huy, Q. (2024). Why do some multinational firms respond better than others to the hostility of host governments? Proximal embedding and the side effects of local partnerships. Journal of Management Studies, 61(2), 627-685. https://doi.org/10.1111/joms.12809
dc.identifier.doihttps://doi.org/10.1111/joms.12809
dc.identifier.issn1467-6486
dc.identifier.officialurlhttps://onlinelibrary.wiley.com/journal/14676486
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3360
dc.issue.number2
dc.journal.titleJournal of Management Studies
dc.language.isoen
dc.page.final685
dc.page.initial627
dc.page.total59
dc.publisherWiley
dc.relation.departmentStrategy
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject.keywordBusiness-government relationships
dc.subject.keywordObsolescent bargaining
dc.subject.keywordExpropriation
dc.subject.keywordNonmarket strategies
dc.subject.keywordExit decision
dc.subject.keywordFirm-government dispute
dc.titleWhy Do Some Multinational Firms Respond Better Than Others to the Hostility of Host Governments? Proximal Embedding and the Side Effects of Local Partnerships
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dc.volume.number61
dspace.entity.typePublication
relation.isAuthorOfPublicationb3ca6f94-dc17-4397-a8c9-3b25280fafe8
relation.isAuthorOfPublication.latestForDiscoveryb3ca6f94-dc17-4397-a8c9-3b25280fafe8
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