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Gaining legitimacy through hiring local workforce at a premium: The case of MNEs in the United Arab Emirates
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Forstenlechner, Ingo and Mellahi, Kamel (2011) Gaining legitimacy through hiring local workforce at a premium: The case of MNEs in the United Arab Emirates. Journal of World Business, Vol.46 (No.4). pp. 455-461. doi:10.1016/j.jwb.2010.10.006 ISSN 1090-9516.
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Official URL: http://dx.doi.org/10.1016/j.jwb.2010.10.006
Abstract
This study examines the process and outcomes of cultivating external legitimacy through the employment of host country nationals by multinational enterprises' (MNEs) affiliates in the United Arab Emirates. It builds on the literatures of both institutional theory and legitimacy. Analysis of data obtained from 48 managers of MNE's affiliates located in the UAE shows that in sectors where the employment of host country nationals is almost taken for granted such as in banking, MNEs are driven by a sense of appropriateness and social legitimacy. In contrast, in sectors where the employment level of UAE nationals is almost nonexistent, those MNEs engaging in localization are driven by the logic of economic efficiency and tend to employ nationals in order to extract rent from the government. The authors discuss the results and their managerial and policy implications. (C) 2010 Published by Elsevier Inc.
Item Type: | Journal Article | ||||
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Subjects: | H Social Sciences > H Social Sciences (General) | ||||
Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
Journal or Publication Title: | Journal of World Business | ||||
Publisher: | Elsevier | ||||
ISSN: | 1090-9516 | ||||
Official Date: | 2011 | ||||
Dates: |
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Volume: | Vol.46 | ||||
Number: | No.4 | ||||
Number of Pages: | 7 | ||||
Page Range: | pp. 455-461 | ||||
DOI: | 10.1016/j.jwb.2010.10.006 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Data sourced from Thomson Reuters' Web of Knowledge
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