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Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa

Boso, N.
; 
Amankwah-Amoah, J.
; 
Essuman, D.
; 
Olabode, Oluwaseun E.
; 
Bruce, P.
; 
Hultman, M.
; 
Kutsoati, J.K.
; 
Adeola, O.
Publication Date
2023-02
End of Embargo
Supervisor
Keywords
Corporate political activity, Political resources, Dysfunctional market conditions, MNE subsidiary performance, Institutional theory, Configuration theory, Moderated regression model, Sub-Saharan Africa
Rights
© 2023 Springer. Reproduced in accordance with the publisher's self-archiving policy. The final publication is available at Springer via https://doi.org/10.1057/s41267-022-00594-8
cb
Peer-Reviewed
Yes
Open Access status
openAccess
Accepted for publication
26/11/2022
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Management and Law Publications
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Additional title
Abstract
We examine how ties with multiple host-country political institutions contribute to MNE subsidiary performance in countries with weak formal institutions. We suggest that forging relationships between subsidiaries and host-country government actors, local chieftains, and religious leaders generates regulative, normative, and cultural-cognitive political resources. We integrate institutional and configuration theories to argue that similarity to an ideal configuration of the three political resources contributes to MNE subsidiary performance, and that the more dysfunctional host country institutions, the greater the impact on performance. We test our hypotheses using primary and archival data from 604 MNE subsidiaries in 23 Anglophone sub-Saharan African countries and find support for our hypotheses. In our conclusion we discuss the wider theoretical, managerial, and public policy implications of our findings.
URI
http://hdl.handle.net/10454/19278
Version
Accepted manuscript
Citation
Boso N, Amankwah-Amoah J, Essuman D et al (2022) Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa. Journal of International Business Studies. 54: 1055-1089.
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Link to published version
Link to Version of Record
https://doi.org/10.1057/s41267-022-00594-8
Type
Article
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Notes