Coevolution of Market De-Globalization and Political Paradigm Shift
Coevolution of Market De-Globalization and Political Paradigm Shift

Author(s): Hong-Jen C. Chiu
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Social ties; organizational resilience; strategic risks; ambidextrous learning
Summary/Abstract: Purpose: Co-evolving market de-globalization and political paradigm shift affect strategic risks. How could wecharacterize the strategic risks faced by MNEs? To address these research issues motivates this paper. We aim atdeveloping a process model of managing strategic risks through the lens of social ties, organizational resilience,and institutional voids. Methodology: This paper employs a conceptual framework development approach for analyzing strategic risksfaced by commodity-based MNEs. The development of this model is line with the internal and externalperspectives of the crisis process (Bundy et al., 2017). Findings: First, there are threshold conditions for the diverse existing political ties, which could open newopportunities for new ties. Second, a firm’s capability for ambidextrous learning contributes to organizationalresilience as a whole. Third, there is an invert U-shape relationship between ambidexterity and cognitivelegitimacyperformance. Finally, we suggest a refinement of “transnational solutions” for MNEs. Research/practical implications: We extend the literature on risk management to take a resilience approach thatemphasizes the great likelihood of joint adverse events in the cyclical commodity economies. Then, our focus onambidexterity in managing strategic ties has implications for enhancing an MNE’s social legitimacy abroad.Finally, our work sheds light on comparable constructs and propositions – i.e., ambidexterity versus “transactionalconfidence-enhancing” mechanisms (Gao et al., 2017). Originality/value: This paper ought to be the first to advance van der Vegt et al.’s (2015) inquiry on howorganizational resilience helps mitigate political risks. Our findings should also add new value to our understandingof the new mission for MNEs – i.e., integrate locally and adapt globally (Santos & Williamson, 2015).

• Details
• Contents