Navigating institutional voids
A comparative study of German and American multinationals in Egypt
Bibliographic Data
| ID | 7174158 |
|---|---|
| Authors | Raghda El Ebrashi (0000-0002-5584-6930, German University in Cairo, corresponding author), Menatallah Darrag (0000-0002-4114-3441, German University in Cairo), Salma Tosson (German University in Cairo), Amira Aldibiki (German University in Cairo), Florian Becker‐ritterspach (0000-0001-5034-4838, HTW Berlin - University of Applied Sciences) |
| Year | 2025 |
| Volume | 21 |
| Issue | 4 |
| Pages | 533-580 |
| Publication date | 2025-04-10 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Critical Perspectives on International Business (JOURNAL) |
| Journal identifiers | ISSN: 1742-2043 • E-ISSN: 1758-6062 |
| Publisher | Emerald Publishing Limited (PUBLISHER • GB) |
| DOI | 10.1108/cpoib-09-2024-0111 |
| OpenAlex | W4409341775 |
| Language | EN |
| Citations received | 1 |
| References cited | 85 |
Purpose This study aims to explore how MNCs from different market economies perceive and respond to institutional voids in emerging markets. Specifically, it examines whether and why multinational corporations (MNCs) from liberal market economies (LMEs) and coordinated market economies (CMEs) develop different strategic responses to institutional challenges in Egypt. Design/methodology/approach The study uses an exploratory qualitative methodology using a multiple-case study design to understand how MNCs perceive institutional voids in emerging markets and how they respond based on their home-country institutional embeddedness. The research focuses on German and American MNCs operating in Egypt, using semistructured interviews and triangulating primary and secondary data. Data were analyzed using the Gioia Methodology and grounded theory coding techniques. Findings This study identifies notable differences in how German (CME) and American (LME) MNCs address institutional voids, despite perceiving these voids similarly. German MNCs favor external, strategic collaborations, such as knowledge clusters and partnerships with government and industry stakeholders, to tackle regulatory opacity and skill mismatches. American MNCs emphasize firm-centered solutions, focusing on internal training, exclusive partnership, and market-driven strategies. These findings suggest that home-country institutional embeddedness influences response strategies but does not necessarily shape void perceptions. In addition, this study introduces a typology of “Varieties of Institutional Responses” (VIR), distinguishing between “arm’s-length market/dyadic” and “strategic-collaborative/network” responses. Research limitations/implications This work contributes to international business in three key ways. First, the authors synthesize existing research on institutional voids and MNC responses, presenting a comprehensive framework integrating formal/informal and market/nonmarket voids. Second, the authors advance the discourse on institutional voids by highlighting the role of home-country institutional embeddedness in shaping MNC strategies. Third, focusing on Egypt, the authors address the underresearched institutional dynamics of African economies, exploring how institutional complexities impact MNC behavior. Practical implications Policymakers in emerging markets may benefit from understanding how and why the institutional entrepreneurship of MNCs influences their domestic institutional systems. Social implications From a critical management perspective, this paper offers important insights into how the divergent institutional entrepreneurship of MNCs impacts host-country institutional systems in emerging markets. Originality/value This study offers a novel perspective on institutional voids by examining how MNCs from different market economies – specifically, German (CMEs) and American (LMEs) – perceive and respond to these voids in the emerging market of Egypt. By introducing the “VIR” typology, which differentiates between “arm’s-length market/dyadic” and “strategic-collaborative/network” responses, this research advances the understanding of how home-country institutional embeddedness influences MNC strategies
Archaeology · Business · Economic geography · Geography · German · International trade · Political science · International Business and FDI · Migration, Ethnicity, and Economy · Socioeconomic Development in MENA
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Qualitative Quality
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| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |