Institutional drivers of stakeholder engagement and legitimacy of Chinese MNEs

Hofman, Peter S., Li, Lei, Sun, Sunny Li, and Sun, Yanxue (2019) Institutional drivers of stakeholder engagement and legitimacy of Chinese MNEs. In: Leonidou, Leonidas C., Katsikeas, C.S., Samiee, S., and Leonidou, C.N., (eds.) Socially Responsible International Business: Critical Issues and the Way Forward. New Horizons in International Business . Edward Elgar, Cheltenham, UK, pp. 98-132.

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Abstract

Chinese multinational enterprises (MNEs) have adopted aggressive internationalization strategies in recent years. Despite their impressive success, Chinese MNEs have encountered serious and prolonged legitimating challenges of East-meets-West. This study draws upon the stakeholder view and institutional theory to examine the linkages between stakeholder engagement and the organizational legitimacy of Chinese MNEs in Western countries. We submit that home-host country institutional distances (regulatory, cognitive and normative) underscore stakeholder engagement deficiencies of and local distrust toward Chinese MNEs which in turn are detrimental to their establishment of organizational legitimacy in Western host countries. By distinguishing between sub-national and national legitimacy, we reveal the differential effects of some intervening remedies such as isomorphism and stakeholder negotiation adopted by the Chinese MNEs.

Item ID: 76028
Item Type: Book Chapter (Research - B1)
ISBN: 9781788114110
Copyright Information: © Leonidas C. Leonidou, Constantine S. Katsikeas, Saeed Samiee and Constantinos N. Leonidou 2019.
Date Deposited: 18 Sep 2022 21:42
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350706 International business @ 50%
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350702 Corporate social responsibility @ 50%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150302 Management @ 100%
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