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Journal of International Business Studies

, Volume 36, Issue 3, pp 322–340 | Cite as

The determinants of MNE subsidiaries' political strategies: evidence of institutional duality

  • Amy J HillmanEmail author
  • William P Wan
Article

Abstract

In this study, we develop and test a model of the determinants of political strategies used by foreign subsidiaries of multinational enterprises (MNEs). Using recent theoretical advances in institutional theory that recognize that MNE subsidiaries are confronted with pressures for isomorphism within the corporation (internal legitimacy) and within the host country (external legitimacy), we integrate international business and political strategy literatures to create a multilevel model of subsidiary, host country and parent determinants of political strategy. Our hypotheses are tested using survey and archival data from Western European subsidiaries of US MNEs.

Keywords

political strategies institutional theory MNE coordination 

Notes

Acknowledgements

We are grateful to Departmental Editor Lorraine Eden and the three anonymous reviewers for their valuable comments and suggestions during the review process.

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Copyright information

© Academy of International Business 2005

Authors and Affiliations

  1. 1.Department of ManagementArizona State UniversityTempeUSA
  2. 2.Global Business DepartmentThunderbird, The Garvin School of International ManagementGlendaleUSA

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