Social influence and MNE strategic response to political risk: A global network approach

• 成果类型: Article
• 署名作者: Cannizzaro, Anthony P.
• 署名单位: Catholic University of America
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00246-4
• 发表日期: 2020
• 页码: 829-850
• 关键词: MNE-host country relations; social influence; bargaining; TRANSPARENCY; POLITICAL RISK; Network analysis

摘要

According to the conventional view of MNE-host country relations, MNEs faced with political risk condition their strategic responses on each party's relative power positions - or bargaining influence. Drawing insight from network theory, institutional theory, and international relations research, I argue that firm sensitivity to political risk is contingent upon a complementary concept: social influence. Social influence arises through the mutual embeddedness of MNE and host government in a complex global network of nations. To test my hypotheses, I construct a global network of trade relations that I combine with a unique transaction-level dataset from the global petroleum industry. My results demonstrate that social influence, as modeled by home-host structural equivalence, moderates the effects of political risk. Further, my findings provide support for a conceptual and empirical distinction between social influence and the traditional bargaining influence examined in the literature.