The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies

Peter Rodgers (), Peter Stokes, Shlomo Tarba and Zaheer Khan
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Peter Rodgers: University of Leicester School of Business
Peter Stokes: Leicester Castle Business School, De Montfort University
Shlomo Tarba: Birmingham Business School, University of Birmingham
Zaheer Khan: Kent Business School, University of Kent

Management International Review, 2019, vol. 59, issue 4, No 2, 515-540

Abstract: Abstract In this article, we examine the mechanisms of the corporate political activities of service multinational enterprises (SMNEs) operating in an emerging economy. Reporting the findings of qualitative interviews with key decision-makers in Ukraine, the article illuminates how SMNEs operating in turbulent institutional contexts can enact various corporate political strategies, including social responsibility activities, to mitigate market costs and develop legitimacy. The findings elucidate how government agencies and institutions may also invoke corporate social responsibility (CSR) as a strategy. The article makes key contributions; firstly, it underscores the complementary dynamics that exist between CPA and CSR strategies in host markets characterised by weak and incomplete institutions. Secondly, the article contributes to the relatively under-explored nature of service sector MNEs operating in such institutional contexts.

Keywords: Non-market strategies; Corporate political activity (CPA); Corporate social responsibility (CSR); Service MNEs; Emerging economy; Legitimacy (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (33)

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DOI: 10.1007/s11575-019-00385-8

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