Self-categorization as a nonmarket strategy for MNE subsidiaries: Tracking the international expansion of an online platform

Corentin Curchod, Gerardo Patriotta, Mike Wright

Research output: Contribution to journalArticlepeer-review

20 Citations (SciVal)

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 languageEnglish
Article number101070
JournalJournal of World Business
Volume55
Issue number3
DOIs
Publication statusPublished - 1 Apr 2020

Keywords

  • Institution-based view
  • MNE subsidiaries
  • Nonmarket strategy
  • Organizational practice transfer
  • Self-categorization

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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