Strategic responses to extreme institutional challenges: An MNE case study in the Palestinian mobile phone sector

Alaydi, Sharif; Buck, Trevor; Tang, Yee Kwan

Abstract

Besides firm-level resources and industrial influences, firms’ strategies have been related to their institutional contexts. Empirical studies have investigated survival strategies in international environments where institutional voids, barriers and violence have had independent influences.

This study is the first to analyse strategies in circumstances that combine all these negative challenges. In the Palestinian mobile phone industry, a surviving MNE has faced not only violence, voids and institutional barriers imposed by three different governments, but also the liability of foreignness and its associated uncertainties.

In a highly uncertain environment, it is found that being a MNE brings benefits as well as liabilities of foreignness. Furthermore, this MNE discloses many strategic responses to institutional challenges that are associated with positive outcomes, even in a most extreme Palestinian environment that produces the most propitious circumstances for negative responses and outcomes.

Citation

Alaydi, S., Buck, T., & Tang, Y. K. (2021). Strategic responses to extreme institutional challenges: An MNE case study in the Palestinian mobile phone sector. International Business Review, 30(3), Article 101806. https://doi.org/10.1016/j.ibusrev.2021.101806

• Journal Article Type: Article
• Acceptance Date: Jan 15, 2021
• Online Publication Date: Feb 3, 2021
• Publication Date: 2021-06
• Deposit Date: Sep 23, 2021
• Journal: International Business Review
• Print ISSN: 0969-5931
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Issue: 3
• Article Number: 101806
• DOI: https://doi.org/10.1016/j.ibusrev.2021.101806
• Keywords: Institutional context, Institution-based view, Institutional challenges, MNE, Violence, Strategic responses
• Public URL: http://researchrepository.napier.ac.uk/Output/2804566