IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v55y2024i9d10.1057_s41267-024-00723-5.html
   My bibliography  Save this article

Doing good for political gain: the instrumental use of the SDGs as nonmarket strategies

Author

Listed:
  • Christiaan Röell

    (University of New South Wales)

  • Felix Arndt

    (University of Guelph)

  • Mirko H. Benischke

    (Erasmus University Rotterdam)

  • Rebecca Piekkari

    (Aalto University School of Business)

Abstract

The United Nations Sustainable Development Goals (SDGs) are changing the way multinational enterprises (MNEs) engage with host governments. The SDGs offer MNEs a unique opportunity to build political influence by assisting governments in attaining a host country’s social needs. However, international business scholars have largely remained silent on how MNEs strategize to repurpose ‘doing good’ into political influence. Based on a multiple case study of four Western European MNE subsidiaries in Indonesia, we uncover the strategies that MNEs use to turn their SDG initiatives into political access and influence. Our study reveals three nonmarket strategies – SDG-directed cross-sector partnership, SDG-directed conflict management, and SDG-directed constituency building. These actionable strategies help MNEs manage the tensions arising from misaligned government priorities, high levels of perceived corruption, and skepticism toward foreign firms. Our findings advance the literature on international nonmarket strategy by explaining how MNE subsidiaries resolve these tensions and convert SDG-directed investments into political access and influence without succumbing to locally institutionalized norms of corruption. Finally, our study suggests that emerging-market governments may benefit from rewarding MNEs for their investments that contribute to the SDGs, as long as they provide clear guidance and multi-stakeholder platforms that foster effective collaborations with MNEs.

Suggested Citation

  • Christiaan Röell & Felix Arndt & Mirko H. Benischke & Rebecca Piekkari, 2024. "Doing good for political gain: the instrumental use of the SDGs as nonmarket strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(9), pages 1170-1189, December.
  • Handle: RePEc:pal:jintbs:v:55:y:2024:i:9:d:10.1057_s41267-024-00723-5
    DOI: 10.1057/s41267-024-00723-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-024-00723-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41267-024-00723-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Barnard, Helena & Mamabolo, Anastacia, 2022. "On religion as an institution in international business: Executives’ lived experience in four African countries," Journal of World Business, Elsevier, vol. 57(1).
    2. Zheng, Weiting & Ang, Siah Hwee & Singh, Kulwant, 2022. "The interface of market and nonmarket strategies: Political ties and strategic competitive actions," Journal of World Business, Elsevier, vol. 57(4).
    3. Mirko H. Benischke & Ajay Bhaskarabhatla, 2024. "Negative Incentives and Regulatory Capture: Noncompliance with Price Ceilings on Essential Medicines in India," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 336-374, March.
    4. Peter Rodgers & Peter Stokes & Shlomo Tarba & Zaheer Khan, 2019. "The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies," Management International Review, Springer, vol. 59(4), pages 515-540, August.
    5. Christopher Wickert, 2021. "Corporate Social Responsibility Research in the Journal of Management Studies: A Shift from a Business‐Centric to a Society‐Centric Focus," Journal of Management Studies, Wiley Blackwell, vol. 58(8), pages 1-17, December.
    6. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    7. Peng Zhou & Felix Arndt & Kun Jiang & Weiqi Dai, 2021. "Looking Backward and Forward: Political Links and Environmental Corporate Social Responsibility in China," Journal of Business Ethics, Springer, vol. 169(4), pages 631-649, April.
    8. Marleen Dieleman & Wladimir M. Sachs, 2008. "Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto's Crony Regime," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1274-1300, November.
    9. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    10. Peter Rodriguez & Donald S Siegel & Amy Hillman & Lorraine Eden, 2006. "Three lenses on the multinational enterprise: politics, corruption, and corporate social responsibility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 733-746, November.
    11. Onna Malou van den Broek, 2024. "How Political Actors Co‐Construct CSR and its Effect on Firms' Political Access: A Discursive Institutionalist View," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 595-626, March.
    12. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    13. Busch, Christian & Barkema, Harry, 2022. "Align or perish: social enterprise network orchestration in Sub-Saharan Africa," LSE Research Online Documents on Economics 115350, London School of Economics and Political Science, LSE Library.
    14. Yadong Luo, 2006. "Political behavior, social responsibility, and perceived corruption: a structuration perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 747-766, November.
    15. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 341-363, September.
    16. D Eleanor Westney & John Van Maanen, 2011. "The casual ethnography of the executive suite," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 602-607, June.
    17. Frank Hond & Kathleen A. Rehbein & Frank G. A. Bakker & Hilde Kooijmans-van Lankveld, 2014. "Playing on Two Chessboards: Reputation Effects between Corporate Social Responsibility (CSR) and Corporate Political Activity (CPA)," Journal of Management Studies, Wiley Blackwell, vol. 51(5), pages 790-813, July.
    18. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    19. Ruxi Wang & Frank Wijen & Pursey P.M.A.R. Heugens, 2018. "Government's green grip: Multifaceted state influence on corporate environmental actions in China," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 403-428, February.
    20. Catherine Welch & Eriikka Paavilainen-Mäntymäki & Rebecca Piekkari & Emmanuella Plakoyiannaki, 2022. "Reconciling theory and context: How the case study can set a new agenda for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 4-26, February.
    21. Anthony P Cannizzaro, 2020. "Social influence and MNE strategic response to political risk: A global network approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 829-850, July.
    22. Jan Anton van Zanten & Rob van Tulder, 2018. "Multinational enterprises and the Sustainable Development Goals: An institutional approach to corporate engagement," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 208-233, December.
    23. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    24. Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
    25. Christiaan Röell & Felix Arndt & Vikas Kumar, 2024. "A Blessing and a Curse: Institutional Embeddedness of Longstanding MNE Subsidiaries in Emerging Markets," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 561-594, March.
    26. Patrick Regnér & Jesper Edman, 2014. "MNE institutional advantage: How subunits shape, transpose and evade host country institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 275-302, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    2. Shirodkar, Vikrant & Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2024. "MNE nonmarket strategy in a changing world: Complexities, varieties, and a values-based approach," International Business Review, Elsevier, vol. 33(2).
    3. Iiris Saittakari & Tiina Ritvala & Rebecca Piekkari & Perttu Kähäri & Sami Moisio & Tomas Hanell & Sjoerd Beugelsdijk, 2023. "A review of location, politics, and the multinational corporation: Bringing political geography into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 969-995, August.
    4. Pei Sun & Jonathan Doh & Tazeeb Rajwani & Timothy Werner & Xiaowei Rose Luo, 2024. "The Management of Socio‐Political Issues and Environments: Toward a Research Agenda for Corporate Socio‐Political Engagement," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 277-306, March.
    5. Adomako, Samuel & Abdelgawad, Sondos G. & Ahsan, Mujtaba & Amankwah-Amoah, Joseph & Azaaviele Liedong, Tahiru, 2023. "Nonmarket strategy in emerging markets: The link between SMEs’ corporate political activity, corporate social responsibility, and firm competitiveness," Journal of Business Research, Elsevier, vol. 160(C).
    6. Wenjie Liu & Pursey P. M. A. R. Heugens, 2024. "Cross-sector collaborations in global supply chains as an opportunity structure: How NGOs promote corporate sustainability in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 429-449, June.
    7. Rekha Rao-Nicholson & Htwe Htwe Thein & Yifan Zhong, 2024. "A thematic analysis of the links between multinational enterprises’ corporate social responsibility and the Sustainable Development Goals in Myanmar," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 203-223, June.
    8. Bucheli, Marcelo & DeBerge, Thomas, 2024. "Multinational enterprises’ nonmarket strategies: Insights from History," International Business Review, Elsevier, vol. 33(2).
    9. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    10. Carney, Michael & Dieleman, Marleen & Taussig, Markus, 2016. "How are institutional capabilities transferred across borders?," Journal of World Business, Elsevier, vol. 51(6), pages 882-894.
    11. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    12. Yan, Zheng Joseph & Zhu, Jiuhua Cherrie & Fan, Di & Kalfadellis, Paul, 2018. "An institutional work view toward the internationalization of emerging market firms," Journal of World Business, Elsevier, vol. 53(5), pages 682-694.
    13. Magnani, Giovanna & Gioia, Denny, 2023. "Using the Gioia Methodology in international business and entrepreneurship research," International Business Review, Elsevier, vol. 32(2).
    14. Il Park, Byung & Xiao, Shufeng (Simon), 2021. "Doing good by combating bad in the digital world: Institutional pressures, anti-corruption practices, and competitive implications of MNE foreign subsidiaries," Journal of Business Research, Elsevier, vol. 137(C), pages 194-205.
    15. Christiaan Röell & Felix Arndt & Vikas Kumar, 2024. "A Blessing and a Curse: Institutional Embeddedness of Longstanding MNE Subsidiaries in Emerging Markets," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 561-594, March.
    16. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Mariani, Marcello & Fosso Wamba, Samuel, 2023. "Examining the role of intellectual capital on knowledge sharing in digital platform-based MNEs and its impact on firm performance," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    17. Curran, Louise, 2024. "Investor state dispute settlement (ISDS) and the social licence to operate of international business: An analysis of controversial cases," International Business Review, Elsevier, vol. 33(2).
    18. Lawton, Thomas C. & De Villa, Maria Andrea & Santamaria-Alvarez, Sandra Milena, 2024. "Making Sense of Socio-Political Risks in International Business: A Configurational Approach to Embracing Complexity," Journal of International Management, Elsevier, vol. 30(2).
    19. Peter Rodgers & Peter Stokes & Shlomo Tarba & Zaheer Khan, 2019. "The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies," Management International Review, Springer, vol. 59(4), pages 515-540, August.
    20. Sadok El Ghoul & Omrane Guedhami & Yongtae Kim, 2017. "Country-level institutions, firm value, and the role of corporate social responsibility initiatives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 360-385, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:55:y:2024:i:9:d:10.1057_s41267-024-00723-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.