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Institutional duality and political strategies of foreign-invested firms in an emerging economy

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  • Zhang, Yanlong
  • Zhao, Wei
  • Ge, Jianhua

Abstract

This study investigates how the complex institutional environment surrounding foreign-invested firms (FIEs) affects their corporate political strategies (CPS) in China. Analyses of data on 442 FIEs operating in China show that the relative potency of dual institutional pressure from FIEs’ home and host countries shapes their strategic choices. Institutional factors at the country, region, and firm levels not only affect firms’ adoption of multiple firm-based tactics but also shape their collective-oriented associational activities. Moreover, participation in both foreign and domestic business associations enhances an FIE's adoption of firm-based political tactics, but joining domestic business associations has a stronger effect.

Suggested Citation

  • Zhang, Yanlong & Zhao, Wei & Ge, Jianhua, 2016. "Institutional duality and political strategies of foreign-invested firms in an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 451-462.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:3:p:451-462
    DOI: 10.1016/j.jwb.2015.12.004
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