Institution building in retreat
The effects of co-devolution on MNE-emerging economy relationships
Bibliographic Data
| ID | 13021569 |
|---|---|
| Authors | Charles Funk (corresponding author), Len J Treviño (0000-0002-5854-8103) |
| Year | 2017 |
| Volume | 24 |
| Issue | 3 |
| Pages | 436-453 |
| Publication date | 2017-06-28 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Cross Cultural & Strategic Management (JOURNAL) |
| Journal identifiers | ISSN: 2059-5794 • E-ISSN: 2059-5808 |
| Publisher | Emerald Publishing Limited (PUBLISHER • GB) |
| DOI | 10.1108/ccsm-01-2016-0001 |
| OpenAlex | W2728051887 |
| Language | EN |
| Citations received | 2 |
| References cited | 54 |
Purpose The purpose of this paper is to describe co-devolutionary processes of multinational enterprise (MNE)/emerging economy institutional relationships utilizing concepts from “old” institutional theory as well as the institutional aspects of socially constructed realities. Design/methodology/approach The authors develop a set of propositions that explore the new concept of a co-devolutionary relationship between MNEs and emerging economy institutions. Guided by prior research, the paper investigates MNE/emerging economy institutional co-devolution at the macro-(MNE home and host countries), meso-(MNE industry/host country regulative and normative institutions) and micro-(MNE and host country institutional actors) levels. Findings MNE/emerging economy institutional co-devolution occurs at the macro-level via negative public communications in the MNE’s home and host countries, at the meso-level via host country corruption and MNE adaptation, and at the micro-level via pressures for individual actors to cognitively “take for granted” emerging economy corruption, leading to MNE divestment and a reduction in new MNE investment. Research limitations/implications By characterizing co-devolutionary processes within MNE/emerging economy institutional relationships, the research augments co-evolutionary theory. It also assists in developing more accurate specification and measurement methods for the organizational co-evolution construct by using institutional theory’s foundational processes to discuss MNE/emerging economy institutional co-devolution. Practical implications The research suggests the use of enhanced regulation, bilateral investment treaties and MNE/local institution partnerships to stabilize MNE/emerging economy institutional relationships, leading to more robust progress in building emerging economy institutions. Originality/value The research posits that using the concepts of institutional theory as a foundation provides useful insights into the “stickiness” of institutional instability and corruption in emerging economies and into the resulting co-devolutionary MNE/emerging economy institutional relationships
Business · Devolution (biology · Economic system · Economics · Emerging markets · Foreign direct investment · Institution · Institutional theory · International business · Language change · Management · Multinational corporation · Political science · Sociology · Corporate Finance and Governance · Family Business Performance and Succession · International Business and FDI
Understanding the Process of Economic Change
Theorizing Change
A dynamic model of process and product innovation
Institutional Theory in the Study of Multinational Corporations
Foreign direct investment and relative wages
The Antecedents of Deinstitutionalization
Prolegomena on Coevolution
The iron cage revisited institutional isomorphism and collective rationality in organizational fields
Why Nations Fail
The social construction of reality
Determinants of Economic Growth
Tva and the Grass Roots
Institutions, Institutional Change and Economic Performance
Corruption and Foreign Direct Investment
The Iron Cage Revisited
Institutionalized Organizations
The Effects of Education as an Institution
| Citations per year | 0.29 |
|---|---|
| Citation span | 2019 - 2022 (4) |
| Highly cited | No |