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To engage or not to engage with host governments : corporate political activity and host-country political risk

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De Villa, Maria A., Rajwani, Tazeeb, Lawton, Thomas C. and Mellahi, Kamel (2019) To engage or not to engage with host governments : corporate political activity and host-country political risk. Global Strategy Journal, 9 (2). pp. 208-242. doi:10.1002/gsj.1205 ISSN 2042-5791.

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Official URL: http://doi.org/10.1002/gsj.1205

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Abstract

We analyze how a host market’s institutional context can influence an MNE’s senior management’s choice and deployment of corporate political activity (CPA). First, we argue that a non-engaged approach to CPA is likely to be chosen when senior management perceives high host-country political risk, arising not only from host-country political institutions, but also from the distance between home and host-government relations. Second, we propose that the deployment of this approach can require active adaptation through four political strategies: low-visibility, ensuring a minimal degree of general attention from other actors; rapid-compliance, entailing high speed actions to obey the rules; reconfiguration, involving re-arranging the MNE’s structure and processes for competitiveness; and anticipation, implying the prediction of public policy and analysis of interest groups to anticipate responses.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Global Strategy Journal
Publisher: John Wiley & Sons Ltd.
ISSN: 2042-5791
Official Date: May 2019
Dates:
DateEvent
May 2019Published
13 January 2018Available
7 January 2018Accepted
Volume: 9
Number: 2
Page Range: pp. 208-242
DOI: 10.1002/gsj.1205
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 13 January 2018
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