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How multinational banks in India gain legitimacy: Organisational practices and resources required for implementation

How multinational banks in India gain legitimacy: Organisational practices and resources required for implementation

Caussat, Paul ORCID: 0000-0003-4638-3476, Prime, Nathalie and Wilken, Robert (2019) How multinational banks in India gain legitimacy: Organisational practices and resources required for implementation. Management International Review, 59 (4). pp. 561-591. ISSN 0938-8249 (Print), 1861-8901 (Online) (doi:https://doi.org/10.1007/s11575-019-00387-6)

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Abstract

Liability of foreignness (LOF) refers to the difficulties and additional costs that multinational enterprises face when they operate in a foreign market. Rooted in institutional theory, extant literature has discussed isomorphism, transference, and sociopolitical activism as legitimation strategies to counteract LOF. This view relates to the macro level of firm and society, assumes passivity of subsidiaries, and neglects implementation of these strategies. Consequently, this paper aims at complementing this restrictive view through a qualitative study to explore how French multinational banks respond to LOF challenges in India, an adverse institutional environment typical of emerging markets but also unique due to strong economic nationalism and cultural traditions. As such, the present article contributes to the institutional research stream by (1) presenting an empirical investigation at the micro level of subsidiary organisational practices to operationalise legitimation strategies in managerial terms; (2) revealing rhetoric proactive strategies beyond the passive or reactive paths identified previously; and (3) discussing the internal implications of implementing legitimation strategies directed at external recipients within the intraorganisational network of multinational banks, using the resource-based view.

Item Type: Article
Additional Information: © The Author(s) 2019. Open Access. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Uncontrolled Keywords: legitimation by isomorphism, legitimation by transference, liability of foreignness, organisational practices, rhetoric legitimation strategy
Subjects: H Social Sciences > HG Finance
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Last Modified: 31 Jul 2019 10:47
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: GREAT 1
URI: http://gala.gre.ac.uk/id/eprint/22378

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