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

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dc.contributor.authorDe Villa, Maria Andrea
dc.contributor.authorRajwani T.
dc.contributor.authorLawton T.C.
dc.contributor.authorMellahi K.
dc.date.accessioned2020-12-03T19:36:24Z
dc.date.available2020-12-03T19:36:24Z
dc.date.issued2019-01-01
dc.description.abstractResearch summary: We analyze how a host market's institutional context can influence a multinational enterprise's (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 rearranging the MNE's structure and processes for competitiveness; and anticipation, implying the prediction of public policy and analysis of interest groups to anticipate responses. Managerial summary: Senior managers of multinational enterprises often examine when and how to engage, or not to engage, with host governments. We argue that senior managers are likely to choose to evade engagement with a host government when they perceive high host country political risk, not only through public political risk ratings, but also via their home and host government relations. We show that this choice can require senior managers to lead active adaptation through four strategies: low visibility, enabling the MNE to operate under the radar of host governments; rapid compliance, entailing high speed actions to obey the rules; reconfiguration, involving rearranging the MNE's structure and processes for competitiveness; and anticipation, implying the prediction of public policy and analysis of interest groups to anticipate responses. © 2018 Strategic Management Society.eng
dc.identifierhttps://eafit.fundanetsuite.com/Publicaciones/ProdCientif/PublicacionFrw.aspx?id=7977
dc.identifier.doi10.1002/gsj.1205
dc.identifier.issn2042-5791
dc.identifier.issn2042-5805
dc.identifier.otherWOS;000473084800003
dc.identifier.otherSCOPUS;2-s2.0-85043369263
dc.identifier.urihttp://hdl.handle.net/10784/24532
dc.language.isoengeng
dc.publisherWiley-Blackwell Publishing Ltd
dc.relation.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85043369263&doi=10.1002%2fgsj.1205&partnerID=40&md5=81069df52e3f341e5d9c08cc60820747
dc.rightshttps://v2.sherpa.ac.uk/id/publication/issn/2042-5791
dc.sourceGlobal Strategy Journal
dc.subject.keywordAdaptationeng
dc.subject.keywordCorporate political activityeng
dc.subject.keywordHome and host government relationseng
dc.subject.keywordPolitical riskeng
dc.subject.keywordPolitical strategieseng
dc.titleTo engage or not to engage with host governments: Corporate political activity and host country political riskeng
dc.typeinfo:eu-repo/semantics/articleeng
dc.typearticleeng
dc.typeinfo:eu-repo/semantics/publishedVersioneng
dc.typepublishedVersioneng
dc.type.localArtículospa

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