Determinants of Political Strategies in U.S. Multinationals

Amy J. Hillman

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Political Influence and Corporate Strategies International Business and FDI Corporate Social Responsibility Reporting

Abstract

This study focuses on the determinants of political strategies used by U.S. multinationals (MNCs) in Europe. Empirical support is found for Hillman and Hitt’s taxonomy of political decisions—that is, approach, participation level, and strategy. The role of institutional- versus firm-level variable determinants of these choices is explored as are the relative effects of firm versus industry variables within differing political contexts. Results based on a survey sample of 169 U.S. MNC subsidiaries within 14 European countries support the finding that both institutional- and firm-level variables are important determinants of political strategy approach, participation level, and strategy.

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References

1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 1990Institutions, Institutional Change and Economic Performance 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1984A resource‐based view of the firm 1991Institutions, Institutional Change and Economic Performance 1995The Theory of the Growth of the Firm 1989Asset Stock Accumulation and Sustainability of Competitive Advantage 1995Institutions and organizations

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