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How institutional voids are experienced and enacted through social innovation initiatives by multinationals in emerging markets

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  • Matus-Ruiz, Maximino
  • Saka-Helmhout, Ayse
  • Carillo, Jorge

Abstract

This paper explores the role of agency in the social construction of institutional voids, rather than seeing them primarily as given. Drawing on case studies of Microsoft in Juarez, Mexico, and Randstad in Buenos Aires, Argentina, we study the interplay among institutional logics, voids, and social innovation practices to fill the voids. We find that organizational practices embedded in institutional logics can collide with social reality and hamper the attainment of organizational goals (void experience). This prompts MNEs to experiment with novel solutions embedded in distinct logics (void enactment) in alignment with the organization´s identity. By outlining an agentic model of void experience and enactment, we provide a fresh perspective on voids to international business scholars and call attention to the social constructivist roots of institutional theory in studying social innovation by multinationals in emerging markets.

Suggested Citation

  • Matus-Ruiz, Maximino & Saka-Helmhout, Ayse & Carillo, Jorge, 2025. "How institutional voids are experienced and enacted through social innovation initiatives by multinationals in emerging markets," International Business Review, Elsevier, vol. 34(2).
    • Handle: RePEc:eee:iburev:v:34:y:2025:i:2:s096959312400129x
    DOI: 10.1016/j.ibusrev.2024.102382
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