Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies

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dc.contributor.authorYu, J.
dc.contributor.authorLee, Seung-Hyun
dc.contributor.utdAuthorLee, Seung-Hyun
dc.date.accessioned2020-01-29T20:49:32Z
dc.date.available2020-01-29T20:49:32Z
dc.date.issued2019-04-16
dc.descriptionOpen EPUB version is freely available for download at https://journals.sagepub.com/doi/epub/10.1177/0007650319843805. PDF copies are only available to UT Dallas affiliates (use the Link to Article),
dc.description.abstractWe investigate what determines a multinational enterprise’s (MNE) propensity to engage in lobbying and bribing in host countries where the overall institutional development for market exchanges is insufficient, and thus, their governance systems are relatively weak. We extend the current literature on institutional strategies by theorizing and showing the persistent and significant impacts of home country institutions on an MNE’s choice of influencing activities to address institutional constraints overseas. More specifically, our results demonstrate that the MNEs from a home country with a stronger governance system are less involved in bribery, but have a higher tendency to lobby in transition economy countries, which have been characterized by relatively weaker institutional development, particularly in the area of governance. This tendency still holds even when these MNEs rely more on the local market for sales. We draw theoretical and practical implications from these observations. © The Author(s) 2019.
dc.description.departmentNaveen Jindal School of Management
dc.identifier.bibliographicCitationYu, J., and S. -H Lee. 2019. "Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies." Business and Society, doi: http://dx.doi.org/10.1177/0007650319843805
dc.identifier.issn0007-6503
dc.identifier.urihttp://dx.doi.org/10.1177/0007650319843805
dc.identifier.urihttps://hdl.handle.net/10735.1/7208
dc.language.isoen
dc.publisherSage Publications Ltd
dc.rights©2019 The Authors
dc.source.journalBusiness and Society
dc.subjectBribery
dc.subjectBusiness planning
dc.subjectLobbying
dc.subjectInternational business enterprises
dc.titleBending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies
dc.type.genrearticle

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