FDI legitimacy and MNC subsidiary control: From legitimation to competition

Peng, George Z.

doi:10.1016/j.intman.2011.12.001

Cited by 36 publications

(22 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…When firms want to increase their presence in the market or enter a new business field, they need recognition in the market and from the important stakeholders. Researchers propose that market legitimacy is especially pertinent and de facto required when governmental authority over business is substantial and government endorsement is essential for existence in a particular market (Peng, 2000;Yiu and Makino, 2002). For example, the Chinese government mandated a markettechnology swap policy as a condition for foreign firms' entrance in China and wanted multinational enterprises to contribute to the local technological capability.…”

Section: Why Does Legitimacy Building Matter?mentioning

confidence: 99%

“…First, this study contributes to the linking of institutional theory (legitimacy building) and technology management (platform acceptance). Although scholars have studied the role of legitimacy in the acceptance of multinational enterprises, new products, and institutional arrangements (Peng, 2012;Rao, 2002;Ward et al, 2011), platform acceptance was separately considered in technology management. In this study, we expand the existing platform research into institutional theory, namely, into market, relational, and social legitimacy.…”

Section: Contributionsmentioning

confidence: 99%

See 1 more Smart Citation

Legitimacy building and e-commerce platform development in China: The experience of Alibaba

Kwak

Yue

Jiang

2019

Technological Forecasting and Social Change

111

View full text Add to dashboard Cite

A B S T R A C TAlthough existing studies have connected the emergence and development of e-commerce with infrastructure, culture, and regulations, we approach technological and platform acceptance from the perspective of legitimacy building. In our study, legitimacy is categorized into market, relational, and social legitimacy, and the link between each type of legitimacy and acceptance is explored. We select the case of Alibaba and argue that Alibaba was especially competent in building legitimacy. Alibaba's continuous efforts to build legitimacy facilitated platform evolution despite its exposed weakness in intellectual property rights. These efforts rendered Alibaba as a de facto standard e-business model. This research suggests that any firm that wants market acceptance for its platform or e-commerce technology should focus more on building legitimacy among stakeholders than on anything else.

show abstract

Section: Why Does Legitimacy Building Matter?mentioning

confidence: 99%

Section: Contributionsmentioning

confidence: 99%

Legitimacy building and e-commerce platform development in China: The experience of Alibaba

Kwak

Yue

Jiang

2019

Technological Forecasting and Social Change

111

View full text Add to dashboard Cite

show abstract

“…Scholars incorporating neo‐institutional theory are interested in uncovering how the institutional forces in a foreign location impact the legitimacy of MNEs and, in turn, determine their strategic behavior (Peng ). In particular, the relationship between mimetic (cognitive) forces and location choice has received considerable attention.…”

Section: Findings From Literature Review Of Recent Researchmentioning

confidence: 99%

Foreign Location Choice: Review and Extensions

Kim

Aguilera

2015

Int J Management Reviews

157

133

View full text Add to dashboard Cite

International Business (IB) research on foreign-location choice has experienced a revival in recent years, yet a comprehensive review has been sorely lacking. The purpose of this review is to synthesize the findings of recently published articles on the topic of foreignlocation choice and offer fruitful directions for future research. This review consists of three sections: first, the authors provide a historical overview of this research stream by tracing its origins and analyzing the general trend that has shaped research on foreignlocation choice. Next, the authors conduct a review of 137 recent articles published in leading IB and business/management journals. These articles are categorized according to common topics, and the main findings of each category are synthesized in order to bring some cohesion to this fragmented field. Lastly, the authors identify issues that remain under-researched or require re-thinking some taken-for-granted assumptions. Through this effort, they are able to connect the past, present and future of research on foreign-location choice and to shed some new light on the IB literature.

show abstract

“…Institutional theory has been used in order to analyse how MNEs can develop appropriate strategies for managing the different contexts of foreign markets (Andersen, Christensen, & Damgaard, ; Dacin, Goodstein, & Scott, ; Tan & Wang, ). It offers an increased understanding of the structures, norms, and values of the local environment and of the pressures that firms have to understand and deal with (Busenitz, Gomez, & Spencer, ; Deligonul, Elg, Cavusgil, & Ghauri, ; Peng, ). Traditionally, a key assumption has been that institutions are inclusive structures that shape the behaviour of firms and drive them to adapt in similar ways, eventually leading to isomorphism (DiMaggio & Powell, ; Yeniyurt, Townsend, Cavusgil, & Ghauri, ).…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2017

View full text Add to dashboard Cite

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.

show abstract

FDI legitimacy and MNC subsidiary control: From legitimation to competition

Cited by 36 publications

References 63 publications

Legitimacy building and e-commerce platform development in China: The experience of Alibaba

Legitimacy building and e-commerce platform development in China: The experience of Alibaba

Foreign Location Choice: Review and Extensions

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

Contact Info

Product

Resources

About