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Managing Political Imperatives: Strategic Responses of Philips in Australia, 1939-1945

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  • Pierre van der Eng

Abstract

The Australian subsidiary of Dutch MNE Philips came under secret service surveillance and faced risk of government takeover as enemy property during World War II. It was also excluded from government contracts for communications equipment, while forced to reduce civilian production. These threats to its assets and operations required the firm to develop an adaptive corporate strategy in order to minimise political risk and also take advantage of opportunities that war production offered. This case study offers a rich insight into the processes an MNE employs to pursue dynamic strategic responses to host country political imperatives, confirming hypotheses of Ring et al. (1990). It demonstrates the relevance of historical cases to substantiating theory in strategic management.

Suggested Citation

  • Pierre van der Eng, 2016. "Managing Political Imperatives: Strategic Responses of Philips in Australia, 1939-1945," CEH Discussion Papers 050, Centre for Economic History, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:hpaper:050
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    File URL: https://cbe.anu.edu.au/researchpapers/CEH/WP201607.pdf
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    References listed on IDEAS

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    1. Geoffrey Jones & Tarun Khanna, 2006. "Bringing history (back) into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 453-468, July.
    2. Andersen, Steen, 2008. "Building for the Shah: Market Entry, Political Reality and Risks on the Iranian Market, 1933–1939," Enterprise & Society, Cambridge University Press, vol. 9(4), pages 637-669, December.
    3. Chermak, J. M., 1992. "Political risk analysis : Past and present," Resources Policy, Elsevier, vol. 18(3), pages 167-178, September.
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    Cited by:

    1. Pierre Van Der Eng, 2017. "Dealing With Liability Of Foreignness: The Case Of Philips In Australia, 1945-1980," CEH Discussion Papers 06, Centre for Economic History, Research School of Economics, Australian National University.

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    More about this item

    Keywords

    political risk; Australia; Philips; electronics industry; World War II;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • N87 - Economic History - - Micro-Business History - - - Africa; Oceania

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