The dynamic value of MNE political embeddedness: The case of the Chinese automobile industry

This paper examines the complex relationship between the embeddedness of multinational enterprises (MNEs) in host-country political networks and their long-run competitive positions in host emerging markets. We report the findings of a longitudinal study of the Chinese automobile sector from the ear...

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Bibliographic Details
Published inJournal of international business studies Vol. 41; no. 7; pp. 1161 - 1182
Main Authors Sun, Pei, Mellahi, Kamel, Thun, Eric
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan 01.09.2010
Palgrave Macmillan UK
SeriesJournal of International Business Studies
Subjects
Automobile industry
Automobiles
Automotive engineering
Automotive industries
Automotive industry
Business
Business and Management
Business community
Business government relations
Business Strategy/Leadership
Business structures
China
Competition
Competitive advantage
Competitiveness
Dynamics
Economics
Emerging markets
International Business
Liberalization
Local government
Longitudinal studies
Management
Manganese
Markets
Multinational corporations
Multinational enterprises
Municipal governments
Networks
Organization
Political economy
Political institutions
Political networks
Political stability
Political systems
Politics
Purchasing
Studies
Supply
Transition economies
China
network theory
competitive strategies of non-emerging market firms for emerging markets
automotive
political aspects of MNE activity
China
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Summary:This paper examines the complex relationship between the embeddedness of multinational enterprises (MNEs) in host-country political networks and their long-run competitive positions in host emerging markets. We report the findings of a longitudinal study of the Chinese automobile sector from the early 1980s to the mid 2000s. Using data from 142 interviews over 11 years, and a wide range of secondary sources, we explore the process through which the value of political embeddedness changed over time in the face of profound and rapid changes in host-country business environments. On the basis of this longitudinal study, the paper unravels the underlying mechanisms that lead to the declining, and even negative, value of deep political embeddedness by MNEs in a politically stable emerging economy.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0047-2506
1478-6990
DOI:10.1057/jibs.2009.94