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

Author

Listed:
  • Pei Sun

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

  • Kamel Mellahi

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

  • Eric Thun

    (Saïd Business School, University of Oxford, Oxford, UK)

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.

Suggested Citation

  • Pei Sun & Kamel Mellahi & Eric Thun, 2010. "The dynamic value of MNE political embeddedness: The case of the Chinese automobile industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1161-1182, September.
    • Handle: RePEc:pal:jintbs:v:41:y:2010:i:7:p:1161-1182
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