Journal Article

Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

Voinea, Cosmina Lelia, van Kranenburg, Hans

2018

Overview

This study investigates the drivers of pressures from various institutions in the nonmarket environment and the responses of MNEs to these pressures in a host country. By taking a broad institutional perspective, this study pairs and integrates the economic perspective of new institutionalism and the sociological perspective of neo institutionalism with the corporate political strategy perspective. This research provides a systematic review of the drivers underlying pressures from various types of nonmarket institutions that explain the preference of firms to use a transactional or relational strategy to deal with these pressures. The evidence is based on research involving MNEs in the Netherlands. The nonmarket institutions that exert the greatest pressures at the national level pushing MNEs to use transactional more than relational strategies and tactics are regulatory and standards agencies. The pressures of political institutions, interest groups, and the media, in contrast, trigger MNEs to employ relational rather than transactional strategies and tactics.

• Publisher: Springer,Springer Berlin Heidelberg,Gabler Verlag,Springer Nature B.V
• Subject: Business and Management / Business Strategy/Leadership / Economic aspects / Economic growth / Emerging Markets/Globalization / Forecasts and trends / Institutionalism / Institutions / Interest groups / Management / Market strategy / Motor vehicle drivers / Multinational corporations / Operations Management / Organization / Organizational behavior / Political institutions / Research Article / Services / Social aspects / Special interest groups / Strategic planning / Strategies / Studies / Systematic review / Tactics