TY - JOUR
T1 - Managing socio-political risk at the subnational level
T2 - Lessons from MNE subsidiaries in Indonesia
AU - Röell, Christiaan
AU - Osabutey, Ellis
AU - Rodgers, Peter
AU - Arndt, Felix
AU - Khan, Zaheer
AU - Tarba, Shlomo
PY - 2022/4/1
Y1 - 2022/4/1
N2 - Within emerging markets, institutional conditions vary significantly at both the country and subnational levels. Although the extant literature recognises the types of risk faced by multinational enterprises (MNEs) in emerging markets, it has hitherto paid scarce attention to explaining how MNEs manage such risk at the subnational level. Reporting on four case studies from Indonesia, we outline how MNEs ensure their success by maintaining active relationships with a variety of non-market actors—including opinion leaders, government officials, and communities at the subnational level. In our study, we developed a conceptual framework, showcasing how MNEs can manage socio-political risk within heterogeneous institutional settings.
AB - Within emerging markets, institutional conditions vary significantly at both the country and subnational levels. Although the extant literature recognises the types of risk faced by multinational enterprises (MNEs) in emerging markets, it has hitherto paid scarce attention to explaining how MNEs manage such risk at the subnational level. Reporting on four case studies from Indonesia, we outline how MNEs ensure their success by maintaining active relationships with a variety of non-market actors—including opinion leaders, government officials, and communities at the subnational level. In our study, we developed a conceptual framework, showcasing how MNEs can manage socio-political risk within heterogeneous institutional settings.
KW - Indonesia
KW - MNEs, Emerging markets
KW - Risk mitigation strategies
KW - Socio-political risk
KW - Subnational differences
UR - http://www.scopus.com/inward/record.url?scp=85124307345&partnerID=8YFLogxK
U2 - 10.1016/j.jwb.2022.101312
DO - 10.1016/j.jwb.2022.101312
M3 - Article
AN - SCOPUS:85124307345
VL - 57
JO - Journal of World Business
JF - Journal of World Business
SN - 1090-9516
IS - 3
M1 - 101312
ER -