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

White, GO and Fainshmidt, S and Rajwani, T (2018) 'Antecedents and Outcomes of Political Tie Intensity: Institutional and Strategic Fit Perspectives.' Journal of International Management, 24 (1). pp. 1-15. ISSN 1075-4253

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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 resources in informally dealing with government officials for nonmarket purposes—will be influenced 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 parent's home country political institutions and foreign subsidiary political tie intensity will positively affect subsidiary performance. We employ primary data collected from 181 foreign subsidiaries 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 environments.

Item Type: Article
Uncontrolled Keywords: Political tie intensity; Home country political institutions; Fit; Strategic performance; Neo-institutional theory; Foreign subsidiary
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 04 Aug 2017 15:37
Last Modified: 06 Jan 2022 14:47

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