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Resource tangibility and foreign firms’ corporate political strategies in emerging economies: evidence from India
journal contribution
posted on 2023-06-08, 20:33 authored by Vikrant ShirodkarVikrant Shirodkar, Alexander T MohrForeign firms operating in emerging economies are increasingly exploiting and becoming dependent on locally existing intangible resources such as intellectual skills, technological know-how and reputation. Political strategies are used to absorb the external constraints associated with this external dependence. Little is known about the different types of political strategies used by foreign firms in emerging economies and the factors that determine this choice. We draw on Resource Dependence theory to argue that this choice will be influenced by the degree to which foreign firms depend on tangible vs. intangible resources. Using a sample of 105 foreign subsidiaries in India, we find that foreign firms that depend on local intangible resources are more likely to use information-based political strategies, but less likely to provide direct financial incentives to policymakers; whereas firms that depend on local tangibles are less likely to use information-based strategies. Foreign firms that depend on both tangible and intangible resources are more likely to use the constituency building strategy. Our findings enhance our understanding of the factors affecting foreign firms’ political strategy in emerging economies.
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Publication status
- Published
File Version
- Published version
Journal
Management International ReviewISSN
0938-8249Publisher
Springer VerlagExternal DOI
Issue
6Volume
55Page range
801-825Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2015-04-16First Compliant Deposit (FCD) Date
2015-04-16Usage metrics
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