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Regulator Vulnerabilities to Political Pressures and Political Tie Intensity: The Moderating Effects of Regulatory and Political Distance

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  • George O. White

    (University of Michigan-Flint)

  • Jean J. Boddewyn

    (The City University of New York)

  • Tazeeb Rajwani

    (University of Essex)

  • Thomas A. Hemphill

    (University of Michigan-Flint)

Abstract

This study applies the institution-based view and neo-institutional theory in addressing how managerial perceptions of regulator vulnerabilities to political pressure, and institutional distance, influence intensification of political ties. Our analysis of 181 wholly owned foreign subsidiary (WOFSs) operating in the Philippines suggests that managerial perceptions of regulator vulnerability to political pressures positively enhance the intensification of political ties. Our results also reveal that regulatory distance and, more importantly, the simultaneous presence of political and regulatory distance diminish the positive relationship between managerial perceptions of regulator vulnerability to political pressures and a WOFS’s propensity to enhance the intensification of political ties. Managerial implications and future research directions are discussed.

Suggested Citation

  • George O. White & Jean J. Boddewyn & Tazeeb Rajwani & Thomas A. Hemphill, 2018. "Regulator Vulnerabilities to Political Pressures and Political Tie Intensity: The Moderating Effects of Regulatory and Political Distance," Management International Review, Springer, vol. 58(5), pages 743-769, October.
    • Handle: RePEc:spr:manint:v:58:y:2018:i:5:d:10.1007_s11575-018-0351-5
    DOI: 10.1007/s11575-018-0351-5
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