Luiz2021_Article_StrategicResponsesToInstitutio.pdf (789.14 kB)
Strategic responses to institutional voids (rationalization, aggression, and defensiveness): institutional complementarity and why the home country matters
Version 2 2023-06-12, 08:11
Version 1 2023-06-10, 01:47
journal contribution
posted on 2023-06-12, 08:11 authored by John Da Silva LuizJohn Da Silva Luiz, Takudzwa Magada, Regis MukumbuziWe seek to understand how the strategic responses of firms to institutional voids are affected by their home countries’ institutional contexts. It adopts an exploratory, multiple case studies approach examining the responses of advanced and emerging multinational enterprises, and local firms in two African countries which are characterized by such voids, namely the Democratic Republic of the Congo and Zimbabwe. Our research suggests that firms’ strategic responses to institutional voids in emerging or developing markets are affected by the home country’s institutional environment and firms’ experiences and advantages arising from that home context. Firms adopt strategic responses which reflect their respective advantages and this results in diverse approaches based on the interplay between capitalizing upon internal resources and institutional know-how. For some firms this may result in a defensive strategic response, whilst for others opportunistic and aggressive agility, or rationalization and reconciliation may manifest. We demonstrate differences between advanced and emerging multinational enterprises and domestic firms covering the spectrum between institutional outsiders and insiders. We emphasize the contextual nature of these strategic responses and argue that this requires integrating both a resource and institution-based analysis of firms’ underlying advantages and how they are able to leverage off these advantages in institutionally voided environments. Practical implications arise for doing business in emerging and developing markets.
History
Publication status
- Published
File Version
- Published version
Journal
Management International ReviewISSN
0938-8249Publisher
SpringerExternal DOI
Issue
5Volume
61Page range
681-711Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2021-11-16First Open Access (FOA) Date
2022-01-10First Compliant Deposit (FCD) Date
2021-11-15Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC