Lookup NU author(s): Dr Dimitry Jacob
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This paper re-visits the relationship between disadvantages and advantages of foreignness, local embeddedness and strategic agency and contributes to the debate on the ability of multinational corporations (MNCs) to introduce change in host countries. By drawing on international business literature and recent developments in neo-institutional theory, we examine the dynamic interplay between MNC embeddedness within the host market environment and MNC capacity for pro-active strategizing towards institutions. We propose that MNCs propensity and ability to exercise agency towards host market institutions is limited when it is weakly embedded as well as when it is strongly embedded, but there is an optimal–or moderate–level of embeddedness at which an MNC may emerge as an agent for change. The theoretical arguments are tested and supported through a qualitative study of 26 MNCs operating in Russia.
Author(s): Svystunova L, Jacob D
Publication type: Conference Proceedings (inc. Abstract)
Publication status: Published
Conference Name: Academy of Management Proceedings
Year of Conference: 2017
Print publication date: 01/08/2017
Online publication date: 30/11/2017
Acceptance date: 30/11/2017
Series Editor(s): Guclu Atinc