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To engage or not to engage with host governments: Corporate political activity and host-country political risk

De Villa, MA and Rajwani, TS and Lawton, T and Mellahi, K (2018) 'To engage or not to engage with host governments: Corporate political activity and host-country political risk.' Global Strategy Journal. ISSN 2042-5805

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Abstract

We analyze how a host market’s institutional context can influence an MNE’s senior management’s choice and deployment of corporate political activity (CPA). First, we argue that a non-engaged approach to CPA is likely to be chosen when senior management perceives high host-country political risk, arising not only from host-country political institutions, but also from the distance between home and host-government relations. Second, we propose that the deployment of this approach can require active adaptation through four political strategies: low-visibility, ensuring a minimal degree of general attention from other actors; rapid-compliance, entailing high speed actions to obey the rules; reconfiguration, involving re-arranging the MNE’s structure and processes for competitiveness; and anticipation, implying the prediction of public policy and analysis of interest groups to anticipate responses.

Item Type: Article
Uncontrolled Keywords: corporate political activity; political risk; home and host-government relations; adaptation; political strategies
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 11 Jan 2018 17:05
Last Modified: 26 Mar 2019 22:15
URI: http://repository.essex.ac.uk/id/eprint/21071

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