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MNE microfoundations and routines for building a legitimate and sustainable position in emerging markets

Elg, Ulf LU ; Ghauri, Pervez N. LU ; Child, John and Collinson, Simon (2017) In Journal of Organizational Behavior
Abstract

A number of studies have analysed how multinational enterprises (MNEs) develop appropriate strategies for managing the institutionally different contexts of various markets. However, we still know rather little about how MNEs manage different institutional pressures when they operate in emerging markets. These markets have a higher level of uncertainty as their values and structures undergo change. This paper investigates the microfoundations and routines that can be part of developing a firm's capability to achieve a legitimate and environmentally sustainable position in emerging markets. We focus upon the microfoundations and routines for managing regulative, normative, and cultural-cognitive pressures. The paper utilizes an extensive... (More)

A number of studies have analysed how multinational enterprises (MNEs) develop appropriate strategies for managing the institutionally different contexts of various markets. However, we still know rather little about how MNEs manage different institutional pressures when they operate in emerging markets. These markets have a higher level of uncertainty as their values and structures undergo change. This paper investigates the microfoundations and routines that can be part of developing a firm's capability to achieve a legitimate and environmentally sustainable position in emerging markets. We focus upon the microfoundations and routines for managing regulative, normative, and cultural-cognitive pressures. The paper utilizes an extensive qualitative case study approach. It reports a study at corporate and subsidiary levels of 3 Swedish MNEs in the in 4 markets: Brazil, Russia, India and China. The study identifies a set of routines for managing each of the 3 institutional forces and supporting microfoundations at individual, interactive, and structural levels. We are thus able to offer new insights on how the institutional context interacts with MNE strategies and identify more generic routines and microfoundations behind the capability for developing a sustainable market position.

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author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Emerging markets, Institutional theory, Microfoundations, MNEs, Routines
in
Journal of Organizational Behavior
publisher
John Wiley and Sons Ltd
external identifiers
  • scopus:85026489725
  • wos:000415694300003
ISSN
0894-3796
DOI
10.1002/job.2214
language
English
LU publication?
yes
id
900e1551-6a1f-4f11-85f8-3e41ff4feabd
date added to LUP
2017-09-01 14:05:02
date last changed
2018-01-16 13:24:31
@article{900e1551-6a1f-4f11-85f8-3e41ff4feabd,
  abstract     = {<p>A number of studies have analysed how multinational enterprises (MNEs) develop appropriate strategies for managing the institutionally different contexts of various markets. However, we still know rather little about how MNEs manage different institutional pressures when they operate in emerging markets. These markets have a higher level of uncertainty as their values and structures undergo change. This paper investigates the microfoundations and routines that can be part of developing a firm's capability to achieve a legitimate and environmentally sustainable position in emerging markets. We focus upon the microfoundations and routines for managing regulative, normative, and cultural-cognitive pressures. The paper utilizes an extensive qualitative case study approach. It reports a study at corporate and subsidiary levels of 3 Swedish MNEs in the in 4 markets: Brazil, Russia, India and China. The study identifies a set of routines for managing each of the 3 institutional forces and supporting microfoundations at individual, interactive, and structural levels. We are thus able to offer new insights on how the institutional context interacts with MNE strategies and identify more generic routines and microfoundations behind the capability for developing a sustainable market position.</p>},
  author       = {Elg, Ulf and Ghauri, Pervez N. and Child, John and Collinson, Simon},
  issn         = {0894-3796},
  keyword      = {Emerging markets,Institutional theory,Microfoundations,MNEs,Routines},
  language     = {eng},
  publisher    = {John Wiley and Sons Ltd},
  series       = {Journal of Organizational Behavior},
  title        = {MNE microfoundations and routines for building a legitimate and sustainable position in emerging markets},
  url          = {http://dx.doi.org/10.1002/job.2214},
  year         = {2017},
}