Legitimacy and Institutional Governance Infrastructure: Understanding Political Risk from a Chinese MNE Perspective

Xia Han, Xiaohui Liu

Research output: Chapter in Book/Report/Conference proceedingChapter

1316 Downloads (Pure)

Abstract

While the political risk associated with Chinese multinational enterprises’ (MNEs) international expansion has generated considerable interest, little attention has been paid to whether Chinese firms’ perceived level of political risk in host countries can be explained by the conventional analytical framework focusing on host-country governance infrastructure and what determines their perceived level of risk in international markets. Drawing insights from the neo-institutional theory, this chapter examines Chinese MNEs’ legitimacy in host countries and how it can shape their perceived level of political risk. Using survey data, we found that while host-country institutional governance infrastructure remains important in explaining firms’ perceived political risk, their effect diminishes when considering host-country stakeholders’ legitimacy judgement. Our findings highlight the need to conceptualize political risk from emerging-economy MNEs’ perspective.
Original languageEnglish
Title of host publicationThe Changing Strategies of International Business
Subtitle of host publicationHow MNEs Manage in a Changing Commercial and Political Landscape
EditorsAgnieszka Chidlow, Pervez N Ghauri, Thomas Buckley, C Gardner, Amir Qamar, Emily Pickering
PublisherPalgrave Macmillan Ltd
Chapter1
Pages3-26
Number of pages24
Edition1
ISBN (Electronic)9783030039318
ISBN (Print)9783030039301
Publication statusPublished - 2018

Fingerprint

Dive into the research topics of 'Legitimacy and Institutional Governance Infrastructure: Understanding Political Risk from a Chinese MNE Perspective'. Together they form a unique fingerprint.

Cite this