Abstract
This article examines how MNE subsidiaries develop nonmarket strategies to create a fit between a global market strategy and a local nonmarket framework. Derived from an analysis of archives and interviews on eBay's expansion into France, our findings suggest that MNE subsidiaries engage in defensive and proactive self-categorization to create their nonmarket strategic fit. Specifically, through the purposeful use of labels, rhetoric and narratives, self-categorization enables subsidiaries to strategically position themselves vis-à-vis both regulators and local incumbents, thereby exercising agency to influence the nonmarket environment in their preferred direction. The findings contribute to the institution-based view of international strategy by shedding new light on the interaction between MNE subsidiaries and local institutional authorities in a context of international expansion. Furthermore, we theorize how subsidiaries use self-categorization to transfer global organizational practices to the host country.
Original language | English |
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Article number | 101070 |
Journal | Journal of World Business |
Volume | 55 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Apr 2020 |
Funding
We would like to thank Jonathan Doh and two anonymous reviewers for their insightful guidance throughout the review process.
Keywords
- Institution-based view
- MNE subsidiaries
- Nonmarket strategy
- Organizational practice transfer
- Self-categorization
ASJC Scopus subject areas
- Business and International Management
- Finance
- Marketing