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The dynamic value of MNE political embeddedness: The case of the Chinese automobile industry

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  • Pei Sun

    (School of Management, Fudan University, Shanghai, P.R. China)

  • Kamel Mellahi

    (The Management School, University of Sheffield, Sheffield, UK)

  • Eric Thun

    (Sa�d Business School, University of Oxford, Oxford, UK)

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    Abstract

    This paper examines the complex relationship between the embeddedness of multinational enterprises (MNEs) in host-country political networks and their long-run competitive positions in host emerging markets. We report the findings of a longitudinal study of the Chinese automobile sector from the early 1980s to the mid 2000s. Using data from 142 interviews over 11 years, and a wide range of secondary sources, we explore the process through which the value of political embeddedness changed over time in the face of profound and rapid changes in host-country business environments. On the basis of this longitudinal study, the paper unravels the underlying mechanisms that lead to the declining, and even negative, value of deep political embeddedness by MNEs in a politically stable emerging economy.

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 41 (2010)
    Issue (Month): 7 (September)
    Pages: 1161-1182

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    Handle: RePEc:pal:jintbs:v:41:y:2010:i:7:p:1161-1182

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    Cited by:
    1. Pei Sun & Kamel Mellahi & Guy Liu, 2011. "Corporate governance failure and contingent political resources in transition economies: A longitudinal case study," Asia Pacific Journal of Management, Springer, vol. 28(4), pages 853-879, December.
    2. Forstenlechner, Ingo & Mellahi, Kamel, 2011. "Gaining legitimacy through hiring local workforce at a premium: The case of MNEs in the United Arab Emirates," Journal of World Business, Elsevier, vol. 46(4), pages 455-461, October.
    3. Jonatan Pinkse & Ans Kolk, 2012. "MNES and climate change : exploring institutional failures and embeddedness," Grenoble Ecole de Management (Post-Print) hal-00707360, HAL.
    4. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.

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