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MNEs and the practice of international business diplomacy
Institution:1. Villanova School of Business, Villanova University, Villanova, PA 19085, USA;2. California State University Monterey Bay, College of Business, 100 Campus Center, Seaside, CA 93955, USA;1. Ted Rogers School of Management, Ryerson University, 350 Victoria Street, Toronto, ON, M5B 2K3, Canada;2. International Business School, Shanghai University of International Business and Economics, No. 1900 Wenxiang Road, Songjiang District, Shanghai, 201620, China;1. Australian Center for Asian Business, UniSA Business School, University of South Australia, Adelaide, Australia;2. Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan;3. UniSA Business School, University of South Australia, Adelaide, Australia;4. Georgia State University, Atlanta, USA;5. Leeds University Business School, UK;1. University of North Carolina at Greensboro, P.O. Box 26170, Greensboro, NC 27402, USA;2. Florida International University, Modesto A. Maidique Campus, 11200 S.W. 8th St., Miami, FL 33199, USA;3. Erasmus University, 3000 DR Rotterdam, The Netherlands;4. Siena College, 515 Loudon Road, Loudonville, NY 12211, USA;5. East Carolina University, 3132 Bate Building, Greenville, NC 27858, USA;1. University of Exeter, UK;2. Research Institute of Industrial Economics, Sweden;3. City University of Hong Kong, China;4. University of Leeds, UK;1. Monash Business School, Monash University, 26 Sir John Monash Drive, Caulfield East, VIC 3145 Melbourne, Australia;2. School of Applied Economics, Renmin University, China;3. DAN Department of Management & Organizational Studies, Western University, Canada;1. Nord University, Business School, Universitetsalléen 11, 8026, Bodø, Norway;2. Leeds University Business School, Maurice Keyworth Building (Office 1.08b), Leeds, LS2 9JT, UK
Abstract:Scholars of international relations and international political economy have long documented international business diplomacy (IBD) as a practice of multinational enterprises (MNEs), although the specific practices involved have not been consistently established in international business scholarship. We apply "practice theory" to position IBD within the realm of MNEs’ global non-market strategy (NMS), arguing that IBD constitutes a set of practices in the implementation of global NMS, and that the most appropriate practices depend upon two key dimensions of the global institutional governance regime faced by the MNEs: the governance level and the degree of rule formality.
Keywords:International business diplomacy  Non-market strategy  Global institutional governance regime  Practice theory  Institutional governance level  Rule formality
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