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Strategic Responses to Domestic and Foreign Institutional Pressures

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  • Mike W. Peng
  • Hao Chen

Abstract

This study investigates how firms respond to domestic institutional constraints and to host country institutional frameworks. A substantial number of firms are active in international business, and yet they remain domestic by staying in their home countries—exporters and outsource service providers come to mind. How these firms react to changes in both domestic and foreign rules of the game, as well as the interactions between these two sets of rules, remains underexplored. Taking advantage of a product recall crisis, this exploratory study probes into how firms in the Chinese toy industry strategically react to the institutional pressures from both home and abroad. Implications for a strategic response framework are discussed.

Suggested Citation

  • Mike W. Peng & Hao Chen, 2011. "Strategic Responses to Domestic and Foreign Institutional Pressures," International Studies of Management & Organization, Taylor & Francis Journals, vol. 41(2), pages 88-105, January.
    • Handle: RePEc:taf:mimoxx:v:41:y:2011:i:2:p:88-105
    DOI: 10.2753/IMO0020-8825410204
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    Cited by:

    1. Miranda J. Welbourne Eleazar, 2022. "Immoral Entrenchment: How Crisis Reverses the Ethical Effects of Moral Intensity," Journal of Business Ethics, Springer, vol. 180(1), pages 71-89, September.
    2. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    3. Ma, Xufei & Ding, Zhujun & Yuan, Lin, 2016. "Subnational institutions, political capital, and the internationalization of entrepreneurial firms in emerging economies," Journal of World Business, Elsevier, vol. 51(5), pages 843-854.
    4. Hari Bapuji & Paul W Beamish, 2019. "Impacting practice through IB scholarship: Toy recalls and the product safety crisis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1636-1643, December.
    5. Deng, Wei & Liang, Qiao Zhuan & Fan, Pei Hua, 2019. "Complements or substitutes? Configurational effects of entrepreneurial activities and institutional frameworks on social well-being," Journal of Business Research, Elsevier, vol. 96(C), pages 194-205.
    6. Wei Deng & Qiaozhuan Liang & Peihua Fan & Lin Cui, 2020. "Social entrepreneurship and well-being: The configurational impact of institutions and social capital," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1013-1037, December.

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