TY - CHAP
T1 - Managing Around Populism
AU - Devinney, Timothy M.
AU - Hartwell, Christopher A.
N1 - Publisher Copyright:
© 2021 Emerald Publishing Limited.
PY - 2021/3/4
Y1 - 2021/3/4
N2 - This chapter reviews the key obstacles to understanding the effects of populism on international business (IB) by focusing on one particular and well-studied facet of IB, firm market entry strategies. While populism has already had and potentially can have future serious repercussions for macroeconomic stability, talent sourcing, and value chain integration, a much more immediate effect of the current strain of anti-globalization populism can be to alter the incentives that a multinational enterprise (MNE) faces in its internationalization approaches and in the decision on where to invest. In practical terms, populist political environments may lead to outright restrictions on some modes of entry but are more likely to incentivize firms top utilize “safer” modes of market entry, which includes outright delays in foreign investment. The constrained space that populism may offer for entry modes may also ratchet up transaction costs to a point that firms will need to re-think their internationalization – not necessarily the strategy, but the planned location for foreign direct investment. In this sense, populists may get what they want, with a reduction of foreign business, and hence foreign influence, within their borders.
AB - This chapter reviews the key obstacles to understanding the effects of populism on international business (IB) by focusing on one particular and well-studied facet of IB, firm market entry strategies. While populism has already had and potentially can have future serious repercussions for macroeconomic stability, talent sourcing, and value chain integration, a much more immediate effect of the current strain of anti-globalization populism can be to alter the incentives that a multinational enterprise (MNE) faces in its internationalization approaches and in the decision on where to invest. In practical terms, populist political environments may lead to outright restrictions on some modes of entry but are more likely to incentivize firms top utilize “safer” modes of market entry, which includes outright delays in foreign investment. The constrained space that populism may offer for entry modes may also ratchet up transaction costs to a point that firms will need to re-think their internationalization – not necessarily the strategy, but the planned location for foreign direct investment. In this sense, populists may get what they want, with a reduction of foreign business, and hence foreign influence, within their borders.
KW - Foreign market entry
KW - Institutional agents
KW - Institutions
KW - Political risk
KW - Political uncertainty
KW - Populism
UR - http://www.scopus.com/inward/record.url?scp=85107799804&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/6251fa98-34df-3ae5-a9a2-edd84ff508e3/
UR - https://www.research.manchester.ac.uk/portal/en/publications/managing-around-populism(a63aa577-264f-413f-91b1-f12ef7c09312).html
U2 - 10.1108/S1745-886220210000015007
DO - 10.1108/S1745-886220210000015007
M3 - Chapter
SN - 9781800432451
T3 - Progress in International Business Research
SP - 95
EP - 105
BT - The Multiple Dimensions of Institutional Complexity in International Business Research
A2 - Verbeke, Alain
A2 - van Tulder, Rob
A2 - Rose, Elizabeth L.
A2 - Wei, Yingqi
PB - Emerald Publishing Limited
CY - Bingley
ER -