Purpose Our study examines multinational enterpris (MNE) decisions to withdraw from the Russian market on moral grounds in reaction to the Russo–Ukrainian war. We investigate to what extent these ...decisions reflect the normative organizational resilience of MNEs under institutional pressures in Russia. We test the impact of various macro- (home democracy, institutional quality, stakeholder pressure) and micro-variables (ESG criteria) that define the organizational identities of MNEs in relation to their withdrawal decisions. Our sample comprises 1,648 companies from 55 countries doing business in Russia before the start of the conflict. Design/methodology/approach To test our hypotheses, we perform a nuanced analysis using both latent constructs and regression analysis on data for 1,648 MNEs. Findings Our results are in line with the foreign divestment literature, suggesting that MNEs are likely to exit normatively distant countries. Originality/value In this study, we explore the impact of organizational values on normative responses of MNEs to a geopolitical crisis. We introduce a normative organizational resilience construct to demonstrate how MNEs respond to institutional pressures in a host country, in this case Russia. Making exit decisions on moral grounds, MNEs have acted as social actors endowed with moral sense and intentionality, in conformity with their organizational values.
This article helps explain the theoretical mechanisms of the contextual influence of ambidextrous foreign acquisition strategies of Chinese multinational enterprises (MNEs) in Europe. Based on the ...National Business System approach, we demonstrate that these strategies are contextually driven and institutionally conditioned. We use fuzzy‐set qualitative comparative analysis to identify the configurations of factors affecting the strategies of 829 mergers and acquisitions (M&As) in 29 countries in 1992–2019. We propose a new measure for the organizational ambidexterity construct based on the nature and type of M&As. Our results show that conglomerate affiliation, state ownership, and international business experience affect the deployment of ambidextrous acquisition strategies, while outward foreign direct investment (FDI) policies have a positive effect only for individual firms or when host country innovation environment is well developed. Finally, smaller individual MNE early internationalizers are more likely to deploy acquisition ambidexterity when the government adopts outward FDI policies.
This article studies the effect of Russia’s aggression against Ukraine on the exit decisions by foreign companies operating in Russia. We introduce a geopolitical approach of International Management ...to explore these decisions in the context of deglobalization. We also consider firms’ ESG criteria to explain their exit decisions. We utilize a multiple regression analysis to test the effect of these variables on a sample of around 2000 firms. Our results show that the exit decisions have been made more in conformity with the geopolitical orientation of country of origin than based on their economic interests. ESG criteria and shared values in the country of origin (Democracy and Human rights) also significantly affect exit decisions.
Cet article étudie l’effet de l’agression de l’Ukraine par la Russie sur les décisions des entreprises étrangères de sortir du marché russe. Nous proposons une approche géopolitique du Management International pour inscrire ces décisions dans un contexte de démondialisation. Nous prenons également en compte les facteurs ESG des entreprises pour expliquer les décisions de sortie. Nous utilisons une analyse de régression multiple pour tester l’effet de ces variables sur un échantillon d’environ 2000 firmes. Nos résultats montrent que les décisions de sortie des firmes l’on été, plus en conformité avec l’orientation géopolitique du pays du siège, qu’en fonction de leurs intérêts économiques. Les facteurs ESG et les valeurs partagées dans les pays du siège des entreprises (Démocratie et Droits de l’Homme) jouent également un rôle important dans les décisions de sortie.
Purpose
Exploration of potential markets in foreign regions such as Europe becomes critical for emerging market multinational enterprises (MNEs). This study aims to investigate structural factors ...that affect the location choice of Chinese and Indian MNEs in Europe and compares them with USA and Japanese MNEs.
Design/methodology/approach
The authors use a holistic approach to identify possible configurations of the determinants of Indian and Chinese outward foreign direct investment (FDI) into 38 European countries. The authors test two configurations as follows: knowledge-seeking by Chinese and Indian MNEs in “non-predictable” markets; market-seeking by USA and Japanese MNEs.
Findings
The findings reveal several strategies deployed in Europe by Chinese and Indian MNEs that are more specific than the pure strategies identified in the literature (e.g. market-seeking, knowledge-seeking). More importantly, unlike USA and Japanese MNEs, the findings confirm a two-stage strategy hypothesis for Chinese MNEs in Europe. Additionally, they show that the quality of institutions and infrastructure underlies the attractiveness of a territory.
Research limitations/implications
Multilevel configurational research might have also been used to consider firm- and industry-level determinants.
Practical implications
Good governance positively affects the entire set of locational determinants. In addition, good infrastructure and institutions are necessary conditions for a country to attract FDI inflow.
Originality/value
Recent internationalization models have been useful in identifying drivers of FDI by emerging market multinational enterprises vs advanced market multinational enterprises in Europe. This study mobilizes a comparative configurational approach.
Cet article analyse les déterminants de localisation des IDE chinois et russes en Europe entre 2006 et 2017. Les IDE chinois et russes présentent certaines similitudes. Ils sont attirés par la ...technologie et l’innovation. Toutefois, contrairement aux EMN russes, les choix des investisseurs chinois sont aussi liés à l’existence d’opportunités offertes par le marché, notamment par la crise des subprimes. En revanche, les IDE russes sont davantage motivés par des considérations géopolitiques. L’impact des variables institutionnelles sur l’IDE chinois est contrasté tandis que les IDE russes ont été attirés par des institutions faibles.
Purpose
While many studies have investigated the impact of institutional factors (i.e. financial risk factors) in the host country on inward foreign direct investment (FDI), fewer studies have ...researched on the locational aspects of FDI in relation to the political economy. This paper aims to fill this gap by examining the effects of the political economy on inward FDI in Poland’s regions and in other CEE (Central and Eastern Europe) countries.
Design/methodology/approach
The paper develops a theoretical argument postulating that political economy affects locational determinants of FDI inflow. To test this hypothesis empirically, several analyses were performed at the national level (Poland, Bulgaria, Romania, Slovakia and the Czech Republic) and at the subnational level (Poland’s provinces). First, the “footloose” nature of FDI inflows using the time series analysis was examined. Then a fixed-effect panel data regression model and a dynamic adjustment model to quantify the impact of political ideology and agglomeration effects were performed.
Findings
After controlling for economic and institutional determinants of FDI, the findings indicate that, in transitional economies, ideology affects the locational choice of multinational corporations (MNCs). At the national level, the results show that political risk, liberalization and economic reforms are important drivers of FDI inflows. At the subnational level, the vote for a liberal party positively affects the distribution of FDI in the provinces. Another finding is that electoral cycles also affect FDI inflows at regional levels in Poland. Finally, this study provides some supporting evidence for the “footloose” nature of FDI in case of external shocks.
Originality/value
This study contributes to the literature on the locational determinants of FDI by showing that ideology constitutes an important factor for locational choices by MNCs. The findings have important implications for public policy decision-makers who are seeking to improve the attractiveness of their country or region as an FDI destination.
In Russia and Ukraine, the structure of government parties -- United Russia and the Party of Regions -- reflects political trends in these countries. Comparing the two sheds light on the divergent ...trajectories of Russia and Ukraine since 1991. Although some similarities still exist, specifically the role of businessmen in the parliamentary groups formed by these parties, other interest groups (such as the police) also carry weight. A network analysis helps us identify, through the connections of MPs with outside social structures, the complex means used by these two parties to wield power and distribute resources. Adapted from the source document.
En Russie et en Ukraine, la structuration des partis de gouvernement Russie unie et Parti des régions reflète l’évolution politique de ces deux pays en transition. Leur comparaison éclaire les ...trajectoires divergentes que la Russie et l’Ukraine ont empruntées après 1991. Si certaines similitudes persistent, notamment au niveau du rôle joué par les hommes d’affaires dans les groupes parlementaires de ces partis, on constate aussi le poids significatif d’autres groupes d’intérêt, par exemple, celui lié à la force publique. L’analyse de réseaux permet d’identifier, à travers la connexion de députés aux structures sociales extérieures, le mécanisme complexe d’exercice du pouvoir et de distribution de ressources que ces deux partis constituent.
In Russia and Ukraine, the structure of government parties — United Russia and the Party of Regions — reflects political trends in these countries. Comparing the two sheds light on the divergent trajectories of Russia and Ukraine since 1991. Although some similarities still exist, specifically the role of businessmen in the parliamentary groups formed by these parties, other interest groups (such as the police) also carry weight. A network analysis helps us identify, through the connections of MPs with outside social structures, the complex means used by these two parties to wield power and distribute resources.
Ce papier explore le lien existant entre les ressources politiques d’entreprise et son efficience. Nos résultats montrent que la mise en valeur du mode de gouvernance clanique permet aux entreprises ...de survivre face à la crise, en mobilisant grâce à leurs connections politiques les subventions nécessaires. En fait, ce mode de gouvernance hybride correspond à un mécanisme d’extraction de rente, qu’on retrouve dans les économies avec un marché imparfait (pays en transition).
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