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Antecedents and Outcomes of Political Tie Intensity: Institutional and Strategic Fit Perspectives

White III, George O., Fainshmidt, Stav and Rajwani, Tazeeb (2018) Antecedents and Outcomes of Political Tie Intensity: Institutional and Strategic Fit Perspectives Journal of International Management, 24 (1). pp. 1-15.

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Although international nonmarket strategy research has highlighted the importance of political ties, it is still unclear why some foreign subsidiaries are more politically active than others and what conditions may render political practices beneficial in a host country. We argue that foreign subsidiary political tie intensity — the extent to which senior managers provide time and re- sources in informally dealing with government officials for nonmarket purposes — will be influ- enced by political institutions in their parent's home country, especially when the MNE parent attempts to protect foreign subsidiary resources. Additionally, we assert that fit between a par- ent's home country political institutions and foreign subsidiary political tie intensity will posi- tively affect subsidiary performance. We employ primary data collected from 181 foreign sub- sidiaries in the Philippines and find support for our hypotheses. This study advances international nonmarket strategy research by highlighting how an MNE's home country political institutions shape subsidiary political networking and strategic performance outcomes in host country en- vironments.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
White III, George O.
Fainshmidt, Stav
Date : March 2018
DOI : 10.1016/j.intman.2017.06.001
Copyright Disclaimer : © 2017 Elsevier Inc. All rights reserved.
Uncontrolled Keywords : Political tie intensity; Home country political institutions; Fit; Strategic performance; Neo-institutional theory; Foreign subsidiary
Depositing User : Diane Maxfield
Date Deposited : 01 Mar 2019 17:07
Last Modified : 21 Jun 2019 02:08

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