Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

C.L. Voinea, Hans van Kranenburg

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This study investigates the drivers of pressures from various institutions in the nonmarket environment and the responses of MNEs to these pressures in a host country. By taking a broad institutional perspective, this study pairs and integrates the economic perspective of new institutionalism and the sociological perspective of neo institutionalism with the corporate political strategy perspective. This research provides a systematic review of the drivers underlying pressures from various types of nonmarket institutions that explain the preference of firms to use a transactional or relational strategy to deal with these pressures. The evidence is based on research involving MNEs in the Netherlands. The nonmarket institutions that exert the greatest pressures at the national level pushing MNEs to use transactional more than relational strategies and tactics are regulatory and standards agencies. The pressures of political institutions, interest groups, and the media, in contrast, trigger MNEs to employ relational rather than transactional strategies and tactics.
Original languageEnglish
Pages (from-to)705-741
Number of pages37
JournalManagement International Review
Volume58
Issue number5
DOIs
Publication statusPublished - Oct 2018

Keywords

  • non-market institutions
  • Organizational change
  • organizational responses
  • transactional actions
  • strategic responses

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