Beyond globalizing POEs and SOEs: Multilevel framing of illegitimacy attributes
This paper addresses an important but under-theorized topic by developing a socio-cognitive model to explain illegitimacy concerns associated with politically-connected firms when undertaking overseas strategic options, and to identify firm actions to mitigate such concerns. We go beyond the existin...
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| Main Authors: | , , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2017
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/5845 |
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| Institution: | Singapore Management University |
| Language: | English |
| Summary: | This paper addresses an important but under-theorized topic by developing a socio-cognitive model to explain illegitimacy concerns associated with politically-connected firms when undertaking overseas strategic options, and to identify firm actions to mitigate such concerns. We go beyond the existing literature’s focus on SOEs by including privately-owned firms into our theorization. Specifically, we offer propositions to explain how multiple-level framing by host country interest groups in terms of state-centeredness, industry sensitivity, and a firm’s ties with its home country government trigger illegitimacy concerns in host nations. In addition, we adopt a holistic approach by theorizing contextual factors across levels (national and state-firm) that moderate the effects of relationship state- centeredness, industry sensitivity, and political ties on such illegitimacy concerns. Our model ends with an identification of counter-framing actions in terms of quantity, and priority to address illegitimacy concerns as well as the associated challenges. Our paper contributes broadly by exposing a systematic form of disadvantages stemming from the structural situation a firm is embedded in, and specifically by identifying key drivers that explain this theoretical mechanism. |
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