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Multinationals’ political activity for institutional change: Evidence from Spain during the international crisis of 2008

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  • García-Cabrera, Antonia M.
  • Durán-Herrera, Juan J.
  • Suárez-Ortega, Sonia M.

Abstract

International crises generate uncoupling between multinational enterprises (MNEs) and the institutional environment. In these settings, industry associations of MNEs have an incentive to engage in institutional change by taking a role as institutional entrepreneurs in order to generate change within the existing, unsuitable institutions. However, MNEs can also try to avoid such institutions or try to adapt to them. Because the antecedents and outcomes of these three forms of engagement in institutional change (institutional avoidance, adaptation, and entrepreneurship) have been scarcely studied in Europe, this reflection examines the case of Spain during the international crisis and analyses the coordinated action of MNEs through their associations in seven industries. The discussion of 30 pieces of evidence regarding the engagement in institutional change in Spain suggests a model that proposes relevant antecedents of different forms of engagement and the expected outcomes resulting from the chosen forms, among them: co-evolution and co-involution.

Suggested Citation

  • García-Cabrera, Antonia M. & Durán-Herrera, Juan J. & Suárez-Ortega, Sonia M., 2019. "Multinationals’ political activity for institutional change: Evidence from Spain during the international crisis of 2008," European Management Journal, Elsevier, vol. 37(5), pages 541-551.
    • Handle: RePEc:eee:eurman:v:37:y:2019:i:5:p:541-551
    DOI: 10.1016/j.emj.2019.02.001
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    More about this item

    Keywords

    Institutional theory; Institutional change; Institutional entrepreneurship; Multinational enterprises; MNE; Industry associations; Economic crisis;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G01 - Financial Economics - - General - - - Financial Crises
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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