Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines

White, George O.; Boddewyn, Jean J.; Galang, Roberto Martin N.

doi:10.1016/j.jwb.2014.10.010

Cited by 66 publications

(99 citation statements)

References 92 publications

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“…The kappa statistic for all ten firms was statistically significant and ranged from 0.818 to 0.944, indicating that responding managers had a ‘very good’ level of agreement (Altman, ). In general, the high level of agreement suggests that the remaining data from single respondents is reliable, as has been shown by other studies (Miller, Cardinal and Glick, ; White, Boddewyn and Galang, ). Even though it was difficult to obtain secondary data, we triangulated some of the primary data using information from secondary sources, and we were able to do this for the few publicly listed firms in the sample.…”

Section: Research Setting and Methodologysupporting

confidence: 77%

“…Based on previous research (Peng and Luo, ; White, Boddewyn and Galang, ), we define MPTs as the extent to which firms’ managers establish and maintain informal relationships via personal networks with government officials, and CSR as corporate actions that improve social welfare (McWilliams and Siegel, ; McWilliams, Siegel and Wright, ). We also define institutional risk exposure as the sum of investment climate constraints resulting from weak market supporting institutions.…”

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confidence: 99%

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Reality or Illusion? The Efficacy of Non‐market Strategy in Institutional Risk Reduction

Liedong

Rajwani

Mellahi

2017

British J of Management

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Non‐market strategy researchers have postulated that political and social strategies reduce the exposure of firms to risk, but those arguments have received little empirical attention. In this paper, we integrate social capital and institutional theories to examine the efficacy of managerial political ties (MPTs) and corporate social responsibility (CSR) in institutional risk reduction. Using survey data from 179 firms in Ghana we find that, whereas CSR reduces institutional risk exposure, MPTs do not. We also find that the effect of MPTs on risk exposure is moderated by public affairs functions. Contrary to extant literature, we do not find evidence of complementarity between MPTs and CSR. Altogether, the findings not only show that the proposed efficacy of MPTs in risk reduction is illusive, but they also signal the need for scrutinizing the harmony between non‐market political and social strategies.

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Section: Research Setting and Methodologysupporting

confidence: 77%

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confidence: 99%

Reality or Illusion? The Efficacy of Non‐market Strategy in Institutional Risk Reduction

Liedong

Rajwani

Mellahi

2017

British J of Management

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“…This theoretical lens emphasizes that political institutions shape the incentives of economic actors and set constraints on their strategic/behavioral choices. Deficiencies in formal institutional development create uncertainties regarding these incentives and constraints, which motive businesses to develop CPC to absorb the uncertainties (White III et al, ). The voids‐bridging function of CPC in foreign markets, either through political strategies or by partnering with host country state‐owned firms, can influence MNEs' entry strategies (Chen et al, ) as well as their performance (Brockman et al, ).…”

Section: Cpc In International Business: a Literature Reviewmentioning

confidence: 99%

Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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Research Summary: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature, along with the articles in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context‐specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other nonmarket strategies, and configurational analysis of the multidimensional context of CPC. Managerial Summary: Multinational companies not only compete in a market environment, they engage with political actors in both their home and host societies. This special issue brings together research that explores how companies use their corporate political connections (CPC) to achieve firm objectives. Each study takes a different approach to studying the phenomenon, informed by the national context of their empirical data. Together, these studies highlight the importance of CPC around the world. However, the variation in research approaches also highlights that the “how and why” of companies' development and utilization of CPC vary across cultures and political systems. In consequence, the development of managerial recommendations always needs to carefully consider the pertinent political context of the available empirical evidence.

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“…Firms can reduce the level of uncertainty by shaping their interaction with such actors. Prior research suggests that the inadequate integration of governments, non-governmental organizations and other relevant groups into the overall strategy can cause major business-critical problems (e.g., Baron, 1995aBaron, ,1995bHillman & Wan, 2005;Shaffer, 1995;Wartick & Wood, 1998;White, Boddewyn, & Galang, 2015). Based on the relevance of such non-market forces in general, and in emerging and developing countries in particular, (e.g., Baysinger, 1984;Blumentritt & Nigh, 2002;Meznar & Nigh, 1995) research has identified various political strategies to engage socio-political stakeholders in international markets (e.g., Hillman, Zardkoohi, & Bierman, 1999;Holtbrü gge, Berg, & Puck, 2007;Lord, 2000).…”

Section: Introductionmentioning

confidence: 99%

Political strategies, entrepreneurial overconfidence and foreign direct investment in developing countries

Heidenreich

Mohr

Puck

2015

Journal of World Business

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Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines

Cited by 66 publications

References 92 publications

Reality or Illusion? The Efficacy of Non‐market Strategy in Institutional Risk Reduction

Reality or Illusion? The Efficacy of Non‐market Strategy in Institutional Risk Reduction

Corporate political connections in global strategy

Political strategies, entrepreneurial overconfidence and foreign direct investment in developing countries

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