Self-categorization as a nonmarket strategy for MNE subsidiaries: Tracking the international expansion of an online platform

Corentin Curchod, Gerardo Patriotta and Mike Wright

Journal of World Business, 2020, vol. 55, issue 3

Abstract: This article examines how MNE subsidiaries develop nonmarket strategies to create a fit between a global market strategy and a local nonmarket framework. Derived from an analysis of archives and interviews on eBay’s expansion into France, our findings suggest that MNE subsidiaries engage in defensive and proactive self-categorization to create their nonmarket strategic fit. Specifically, through the purposeful use of labels, rhetoric and narratives, self-categorization enables subsidiaries to strategically position themselves vis-à-vis both regulators and local incumbents, thereby exercising agency to influence the nonmarket environment in their preferred direction. The findings contribute to the institution-based view of international strategy by shedding new light on the interaction between MNE subsidiaries and local institutional authorities in a context of international expansion. Furthermore, we theorize how subsidiaries use self-categorization to transfer global organizational practices to the host country.

Keywords: Nonmarket strategy; MNE subsidiaries; Institution-based view; Self-categorization; Organizational practice transfer (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (14)

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DOI: 10.1016/j.jwb.2019.101070

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