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

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

Authors

Trevor Buck

Yee Kwan Tang



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), 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