Quotation Shirodkar, Vikrant and Mohr, Alexander. 2015. Resource Tangibility and Foreign Firms' Corporate Political Strategies in Emerging Economies: Evidence from India. Management International Review 55 (6), 801-825.


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Abstract

Foreign firms operating in emerging economies are increasingly exploiting and becoming dependent on locally existing intangible resources such as intellectual skills, technological know-how and reputation. Political strategies are used to absorb the external constraints associated with this external dependence. Little is known about the different types of political strategies used by foreign firms in emerging economies and the factors that determine this choice. We draw on Resource Dependence theory to argue that this choice will be influenced by the degree to which foreign firms depend on tangible vs. intangible resources. Using a sample of 105 foreign subsidiaries in India, we find that foreign firms that depend on local intangible resources are more likely to use information-based political strategies, but less likely to provide direct financial incentives to policymakers; whereas firms that depend on local tangibles are less likely to use information-based strategies. Foreign firms that depend on both tangible and intangible resources are more likely to use the constituency building strategy. Our findings enhance our understanding of the factors affecting foreign firms’ political strategy in emerging economies.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Management International Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Resource Tangibility and Foreign Firms' Corporate Political Strategies in Emerging Economies: Evidence from India
Volume 55
Number 6
Year 2015
Page from 801
Page to 825
Reviewed? Y
DOI http://dx.doi.org/10.1007/s11575-015-0248-5

Associations

People
Mohr, Alexander (Details)
External
Shirodkar, Vikrant (University of Sussex, United Kingdom)
Organization
Institute for International Business (Details)
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