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Institutional drivers of stakeholder engagement and legitimacy of Chinese MNEs

Institutional drivers of stakeholder engagement and legitimacy of Chinese MNEs

Hofman, Peter, Li, Lei, Sun, Li and Sun, Yanxue (2019) Institutional drivers of stakeholder engagement and legitimacy of Chinese MNEs. In: Leonidou, Leonidas C., Katsikeas, Constantine S., Samiee, Saeed and Leonidou, Constantinos N., (eds.) Socially Responsible International Business Critical Issues and the Way Forward. Edward Elgar, pp. 98-132. ISBN 978-1788114110 (doi:

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Chinese multinational enterprises (MNEs) have adopted aggressive internationalization strategies in recent years. Despite their impressive success, Chinese MNEs have encountered serious and prolonged legitimating challenges of East-meets-West. This study draws upon the stakeholder view and institutional theory to examine the linkages between stakeholder engagement and the organizational legitimacy of Chinese MNEs in Western countries. We submit that home-host country institutional distances (regulatory, cognitive and normative) underscore stakeholder engagement deficiencies of and local distrust toward Chinese MNEs which in turn are detrimental to their establishment of organizational legitimacy in Western host countries. By distinguishing between sub-national and national legitimacy, we reveal the differential effects of some intervening remedies such as isomorphism and stakeholder negotiation adopted by the Chinese MNEs.

Item Type: Book Section
Uncontrolled Keywords: corporate social responsibilities; International Business
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Last Modified: 09 Nov 2020 17:55
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: None

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