4.4 Article

Multinational enterprises' risk mitigation strategies in emerging markets: A political coalition perspective

Journal

JOURNAL OF WORLD BUSINESS
Volume 55, Issue 2, Pages -

Publisher

ELSEVIER SCIENCE INC
DOI: 10.1016/j.jwb.2019.101044

Keywords

Emerging markets; Intervention mechanisms; MNEs; Political coalition; Risk mitigation strategies

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This paper contributes to the IB literature by investigating MNEs' risk mitigation strategies in emerging markets. Drawing on institutional perspectives and March's theoretical concept of forming a 'political coalition', we propose that risk mitigation cannot be limited to passive compliance and/or demonstrating good corporate behavior, but should extend to collective efforts by building a political coalition and working with key stakeholders to manage potential risk and obtain favorable outcomes in complex institutional environments. In considering MNEs in contemporary China and India, we offer different types of risk mitigation strategies under various institutional contexts and a framework for future research.

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