Publication type: Book part
Type of review: Editorial review
Title: Managing around populism
Authors: Devinney, Timothy M.
Hartwell, Christopher A.
et. al: No
DOI: 10.1108/S1745-886220210000015007
Published in: The Multiple Dimensions of Institutional Complexity in International Business Research
Editors of the parent work: Verbeke, Alain
van Tulder, Rob
Rose, Elizabeth L.
Wei, Yingqi
Page(s): 95
Pages to: 105
Issue Date: 2021
Series: Progress in International Business Research
Series volume: 15
Publisher / Ed. Institution: Emerald
Publisher / Ed. Institution: Bingley
ISBN: 978-1-80043-245-1
Language: English
Subjects: Foreign market entry; Institutional agent; Institution; Political risk
Subject (DDC): 658.4: Executive Management
Abstract: This chapter reviews the key obstacles to understanding the effects of populism on international business (IB) by focusing on one particular and well-studied facet of IB, firm market entry strategies. While populism has already had and potentially can have future serious repercussions for macroeconomic stability, talent sourcing, and value chain integration, a much more immediate effect of the current strain of anti-globalization populism can be to alter the incentives that a multinational enterprise (MNE) faces in its internationalization approaches and in the decision on where to invest. In practical terms, populist political environments may lead to outright restrictions on some modes of entry but are more likely to incentivize firms top utilize “safer” modes of market entry, which includes outright delays in foreign investment. The constrained space that populism may offer for entry modes may also ratchet up transaction costs to a point that firms will need to re-think their internationalization – not necessarily the strategy, but the planned location for foreign direct investment. In this sense, populists may get what they want, with a reduction of foreign business, and hence foreign influence, within their borders.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: International Management Institute (IMI)
Appears in collections:Publikationen School of Management and Law

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