The dynamic value of MNE political embeddedness: The case of the Chinese automobile industry

Pei Sun, Kamel Mellahi, Eric Thun

Research output: Journal PublicationArticlepeer-review

290 Citations (Scopus)

Abstract

This paper examines the complex relationship between the embeddedness of multinational enterprises (MNEs) in host-country political networks and their long-run competitive positions in host emerging markets. We report the findings of a longitudinal study of the Chinese automobile sector from the early 1980s to the mid 2000s. Using data from 142 interviews over 11 years, and a wide range of secondary sources, we explore the process through which the value of political embeddedness changed over time in the face of profound and rapid changes in host-country business environments. On the basis of this longitudinal study, the paper unravels the underlying mechanisms that lead to the declining, and even negative, value of deep political embeddedness by MNEs in a politically stable emerging economy.

Original languageEnglish
Pages (from-to)1161-1182
Number of pages22
JournalJournal of International Business Studies
Volume41
Issue number7
DOIs
Publication statusPublished - Sept 2010
Externally publishedYes

Keywords

  • automotive
  • China
  • competitive strategies of non-emerging market firms for emerging markets
  • network theory
  • Political aspects of MNE activity

ASJC Scopus subject areas

  • Business and International Management
  • General Business,Management and Accounting
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Fingerprint

Dive into the research topics of 'The dynamic value of MNE political embeddedness: The case of the Chinese automobile industry'. Together they form a unique fingerprint.

Cite this