Self-categorization as a nonmarket strategy for MNE subsidiaries: Tracking the international expansion of an online platform |
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Institution: | 1. School of Management, University of Bath, Claverton Down Road, Bath, BA2 7AY, United Kingdom;2. Surrey Business School, University of Surrey, Rik Medlik Building, Guildford, GU2 7XH, United Kingdom.;3. Cork University Business School, University College Cork, O''Rahilly Building, Cork, TI2 K8AF, Ireland.;1. School of Management, University of Michigan-Flint, United States;2. Department of Management and International Business, College of Business, Florida International University, Miami, FL 33174, United States;3. Essex Business School, University of Essex, United Kingdom |
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Abstract: | This article examines how MNE subsidiaries develop nonmarket strategies to create a fit between a global market strategy and a local nonmarket framework. Derived from an analysis of archives and interviews on eBay’s expansion into France, our findings suggest that MNE subsidiaries engage in defensive and proactive self-categorization to create their nonmarket strategic fit. Specifically, through the purposeful use of labels, rhetoric and narratives, self-categorization enables subsidiaries to strategically position themselves vis-à-vis both regulators and local incumbents, thereby exercising agency to influence the nonmarket environment in their preferred direction. The findings contribute to the institution-based view of international strategy by shedding new light on the interaction between MNE subsidiaries and local institutional authorities in a context of international expansion. Furthermore, we theorize how subsidiaries use self-categorization to transfer global organizational practices to the host country. |
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Keywords: | Nonmarket strategy MNE subsidiaries Institution-based view Self-categorization Organizational practice transfer |
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