Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals
This article addresses how foreign subsidiaries formulate their relational political strategy by responding to the unique parameters of the economic and institutional environment in an emerging market in an attempt to improve their performance. To this end, the authors have developed a model that as...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Sage Publications
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/50130 |
| _version_ | 1848758401716191232 |
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| author | Luo, Yadong Zhao, H. |
| author_facet | Luo, Yadong Zhao, H. |
| author_sort | Luo, Yadong |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article addresses how foreign subsidiaries formulate their relational political strategy by responding to the unique parameters of the economic and institutional environment in an emerging market in an attempt to improve their performance. To this end, the authors have developed a model that assesses economic environment antecedents characterizing an emerging market (regulatory distance, industry accessibility, environmental uncertainty, and economic development) as well as the performance consequence of the subsidiaries' relational political strategy. A possible moderating effect of the firm's reputation in the host country and length of operations on the relationship between political strategy and local performance is also examined in the model. Our analysis of primary and secondary data concerning 358 foreign-invested enterprises in China generally supports this model. |
| first_indexed | 2025-11-14T09:43:24Z |
| format | Journal Article |
| id | curtin-20.500.11937-50130 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:43:24Z |
| publishDate | 2013 |
| publisher | Sage Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-501302017-09-13T15:36:21Z Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals Luo, Yadong Zhao, H. This article addresses how foreign subsidiaries formulate their relational political strategy by responding to the unique parameters of the economic and institutional environment in an emerging market in an attempt to improve their performance. To this end, the authors have developed a model that assesses economic environment antecedents characterizing an emerging market (regulatory distance, industry accessibility, environmental uncertainty, and economic development) as well as the performance consequence of the subsidiaries' relational political strategy. A possible moderating effect of the firm's reputation in the host country and length of operations on the relationship between political strategy and local performance is also examined in the model. Our analysis of primary and secondary data concerning 358 foreign-invested enterprises in China generally supports this model. 2013 Journal Article http://hdl.handle.net/20.500.11937/50130 10.1177/0007650309338365 Sage Publications restricted |
| spellingShingle | Luo, Yadong Zhao, H. Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title | Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title_full | Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title_fullStr | Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title_full_unstemmed | Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title_short | Doing Business in a Transitional Society: Economic Environment and Relational Political Strategy for Multinationals |
| title_sort | doing business in a transitional society: economic environment and relational political strategy for multinationals |
| url | http://hdl.handle.net/20.500.11937/50130 |