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Surviving Political Instability: An Institutional Approach of Multinationals in Mexico

Author

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  • Panibratov, A.
  • Sánchez, R.

Abstract

Business challenges of Mexico as an emerging market with unstable institutions are explored in this study. We conducted a critical discourse analysis to explore the political implications between the new administration of the Presidency of Mexico and multinationals (national and foreign). The institution-based theory will be useful to understand the political strategies implemented by multinationals (MNEs), considering the new governmental policies which criticize neoliberal measures of previous administrations and establishes new rules of the game for doing business. It is argued that corporate political activity (CPA) and political bargaining model (PBM) are vital resources for MNEs to survive in an unstable institutional environment. It is expected to contribute to the theoretical development of unstable institutions and non-market strategies in emerging markets.

Suggested Citation

  • Panibratov, A. & Sánchez, R., 2019. "Surviving Political Instability: An Institutional Approach of Multinationals in Mexico," Working Papers 16135, Graduate School of Management, St. Petersburg State University.
    • Handle: RePEc:sps:wpaper:16135
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