Coping with Autocracy: Corporate Political Activity, Institutional Duality, and MNE – Local Firm Rivalry During 'Institutional Backsliding'

Posted: 20 Jun 2017

See all articles by Dorottya Sallai

Dorottya Sallai

University of Greenwich

Gerhard Schnyder

Loughborough University London - Institute for International Management; University of Cambridge - Centre for Business Research; King's College London

Date Written: June 19, 2017

Abstract

This study contributes to the corporate political activities and the institutional duality literatures by investigating how MNE subsidiaries develop their political capabilities in an increasingly politicized environment in an emerging market (EM). Our study supports the view that institutional duality is not just a constraint but a resource for MNEs. Contrary to previous studies, we show that even firms from institutionally distant economies can successfully transfer political capabilities to the host context, providing them with competitive advantage over local firms. We contribute to the theory by showing that institutional duality needs to be understood as a time-dependent phenomenon.

Keywords: corporate political activity, state capitalism, transition economies

JEL Classification: M10, M16

Suggested Citation

Sallai, Dorottya and Schnyder, Gerhard, Coping with Autocracy: Corporate Political Activity, Institutional Duality, and MNE – Local Firm Rivalry During 'Institutional Backsliding' (June 19, 2017). Available at SSRN: https://ssrn.com/abstract=2988807 or http://dx.doi.org/10.2139/ssrn.2988807

Dorottya Sallai

University of Greenwich ( email )

Old Royal Naval College
30 Park Row
London, SE10 9LS
United Kingdom
+44(0)2083319198 (Phone)

HOME PAGE: http://www.linkedin.com/in/dorottyasallai

Gerhard Schnyder (Contact Author)

Loughborough University London - Institute for International Management ( email )

Lesney Avenue
Here East
London, E15 2GZ
Great Britain
+44 (0)20 3805 1360 (Phone)

University of Cambridge - Centre for Business Research ( email )

Judge Business School Building
Cambridge, CB2 1AG
United Kingdom
++44 (0)1223 765325 (Phone)

HOME PAGE: http://www.cbr.cam.ac.uk/people/research-associates/gerhard-schnyder/

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom
++44 (0)20 7848 4633 (Phone)

HOME PAGE: http://www.kcl.ac.uk/schools/sspp/mgmt/people/academic/schnyder/

Register to save articles to
your library

Register

Paper statistics

Abstract Views
187
PlumX Metrics