Multinational enterprises’ risk mitigation strategies in emerging markets: A political coalition perspective

Ying Zhu and Deepak Sardana

Journal of World Business, 2020, vol. 55, issue 2

Abstract: This paper contributes to the IB literature by investigating MNEs’ risk mitigation strategies in emerging markets. Drawing on institutional perspectives and March’s theoretical concept of forming a ‘political coalition’, we propose that risk mitigation cannot be limited to passive compliance and/or demonstrating good corporate behavior, but should extend to collective efforts by building a political coalition and working with key stakeholders to manage potential risk and obtain favorable outcomes in complex institutional environments. In considering MNEs in contemporary China and India, we offer different types of risk mitigation strategies under various institutional contexts and a framework for future research.

Keywords: Emerging markets; Intervention mechanisms; MNEs; Political coalition; Risk mitigation strategies (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (23)

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DOI: 10.1016/j.jwb.2019.101044

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