Multinational enterprises and strategic actions in emerging economy contexts: From conformity to institutional entrepreneurship

This research explores the broader set of strategic actions of multinational enterprises (MNEs) in emerging markets in response to institutional forces. We re-examine the effect of MNEs on changing institutions in host countries and conceptualize a theoretical model of institutionalization and institutional change initiated by MNEs in emerging economy contexts. In our two-stage approach, we build on an inductive study to explore MNEs' strategic actions and their institutional settings. We then conduct repertory grid analysis to analyze face-to-face interviews with mid-level and senior managers of subsidiaries of eight major MNEs. We identify distinctive categories of strategic action taken by MNEs to respond to facets of their institutional environment, depending on the restrictiveness/openness of their institutional environment, and their self-perceived organizational strength.