Institutional drivers of stakeholder engagement and legitmacy of Chinese MNEs

Peter S. Hofman, Lei Li, Sunny Li Sun, Yanxue Sun

Research output: Chapter in Book/Conference proceedingBook Chapterpeer-review

2 Citations (Scopus)

Abstract

Chinese multinational enterprises (MNEs) have adopted aggressive internationalization strategies in recent years. Despite their impressive success, Chinese MNEs have encountered serious and prolonged legitimating challenges of East-meets-West. This study draws upon the stakeholder view and institutional theory to examine the linkages between stakeholder engagement and the organizational legitimacy of Chinese MNEs in Western countries. We submit that home-host country institutional distances (regulatory, cognitive and normative) underscore stakeholder engagement deficiencies of and local distrust toward Chinese MNEs which in turn are detrimental to their establishment of organizational legitimacy in Western host countries. By distinguishing between sub-national and national legitimacy, we reveal the differential effects of some intervening remedies such as isomorphism and stakeholder negotiation adopted by the Chinese MNEs.

Original languageEnglish
Title of host publicationSocially Responsible International Business
Subtitle of host publicationCritical Issues and the Way Forward
PublisherEdward Elgar Publishing Ltd.
Pages98-132
Number of pages35
ISBN (Electronic)9781788114127
ISBN (Print)9781788114110
DOIs
Publication statusPublished - 1 Jan 2019

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (all)
  • Business, Management and Accounting (all)

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