Recent articles on nonmarket strategy
| Author | Objectives | Methods | Findings | NMS approach |
|---|---|---|---|---|
| Shi et al., 2021 | Foreign institutional ownership (FIO) has been aptly researched, but the study has failed to capture how FIO increased regulatory compliance in host governments, making them more dependent on CPA activities | Multiple case analysis | A firm may engage in FIO but sometimes has a negative impact due to increased political dependence and regulatory compliance, which may serve as exposure to firms, especially during a change of administration. A firm can manage exposure and regulatory compliance using CPA to assess and influence the political background. Political dependence and tight regulatory compliance may hinder the firm from meeting its shareholder goal and affect effective resource allocation | Engage orientation |
| Liou et al., 2021 | The paper aims to study the influence of political animosity in developed countries due to the strategic acquisition of firms in developed markets | The study used data from 2005 to 2011 from USA firms and adopted Tobit Regression Analysis | Findings show that due to the increased political animosity in a developed country, EMNCs engage in nonmarket strategy through lobbying capabilities and acquire less ownership stake in a developed country to control less regulatory scrutiny. Also, due to tight legitimacy concerns in a developed market, shareholders of EMNC firms in developed markets have more legitimacy accessibility than others | Engage orientation |
| Harris and Brown, 2021 | The study assesses the relative performance effect of the top management team (TMT) and chief executive officer (CEO) human capital. The study will also take into consideration the external influence of CPA | Case analysis using data from the national collegiate athletic association (NCAA) | The study found that organizations adopt market and nonmarket strategies to influence performance outcomes. Also, the study found that TMT, CEO and CPA interaction positively influences the firm’s performance | Engage orientation |
| Georgallis et al., 2021 | The article focused on industry support policies in the international market and how they affect firms’ choices of foreign market placement | Greenfield investment data was assessed from financial times (fDimarkets database) between 2004 and 2013 | The findings show that supportive foreign policies encourage new entrants into the renewable energy industries. Furthermore, adverse policy changes from One country influence how firms perceive policy in another country | NonengageOrientation |
| Sun et al., 2021 | The research focuses on documenting nonmarket strategy practices, including CPA and SCSR, while considering the integrative effects of both practices on firm performance | Systematic literature review of multinational NMS research | The review grouped multinational MNS into theme, method, theory, context, and level of analysis based on their contributions. The study develops a multiplicity framework to sectionalize NMS research practices such as CPA and SCSR and their integration to examine how impactful each contributes to MNE performance | Engage orientation |
| Hajmohammad et al., 2021 | The paper’s objective is to develop a typology of response to supplier’s misconduct in achieving environmental sustainability by addressing the contentions of NMS stakeholders | Vignette-based methodology | Findings show that NMS stakeholders’ responses impact supplier misconduct and the organization’s response method; NMS stakeholders’ philosophy impacts response intensity. However, firms’ reputations do not affect the response strategy NMS stakeholders adopt when faced with contentions | Nonengage orientation |
| White et al., 2021 | This research examines how firms can manage MNE nonmarket forces in countries with high populism and geopolitical uncertainties | Systematic literature review of Three articles published in the journal of multinational business review | The study provides insight into the relevant use of MNEs in countries characterized by populism and geopolitical uncertainties and advanced Four critical research gaps for future researchers ranging from (i) resilience and firm legitimacy, (ii) diversification, (iii) institutional arbitrage, (iv) integration, of MS-NMS strategy | Engage orientation |
| Johnson et al., 2021 | The research objective is to determine the willingness of consumers to participate in CPA through the influence of constituency building as an NMS practice | The study adopted a Mixed methodology to examine Three case studies, using qualitative Research in One and quantitative in 2 cases research design | The findings show that consumers become politically connected to an organization due to some essential shared characteristics (brand loyalty, information-seeking, issues pertinent to consumers, value-congruency, among others) with an organization’s brand over time, and this motivates consumers to become politically involved on behalf of the company or brand they shared this connection with | Engage Orientation |
| Nalick et al., 2022 | Different organizations have different CEO personalities and ideologies, and these ideologies determine the rate at which firms engage in lobbying activities. This ideology influences the CEO’s political disposition and organizational performance | Panel data of public firms with governance data and CEOs that engage in campaign contributions covering 1998–2018 | Findings show that the CEO’s political ideology and the current political party significantly impact firm lobbying strategies/investment and organization outcomes. Hence, when the CEO’s political party is in power, a firm may lobby aggressively to maintain and protect its strategic asset and vice versa | Engage Orientation |
| Kim, 2022 | This aims to show how Integration strategy (market and nonmarket) provides a significant edge for organizations over climate change policy. Also, why do firms engage in lobbying policies on climate change and others do not? | Using a data set of US SandP 500 firms on climate change policies | The management of a nonmarket environment is challenging and complex when compared to the market environment. Findings show that neglecting the nonmarket environment may challenge the long-term sustainability of organizations due to climate change. The firm, therefore, needs to manage its carbon emissions and forge a sustainable relational strategy with nonmarket stakeholders to manage both market and nonmarket climate issues. Also, organization resources and capabilities are essential to combat market and nonmarket strategies to manage carbon emissions and relative policy changes in the home and host markets. The findings show that central and local political ties have conflicting performance outcomes and firms’ strategic competitive actions on the organization. The study enriched the co-evolution framework in the international business literature by integrating the yin-yang framework to broaden the economic understanding of risks and costs in political disruptions of multinational subsidiaries operating in China. The study proposes Three yin-yang frameworks to analyze NMS strategy better.The research uncovers Seven questions posed by NMS historians to understand better past, present, and future nonmarket strategies for effective integrations of strategic competitive actions. The study found that in an institutionally voided business environment like Nigeria and Ghana, new MNEs need to deploy Three kinds of legitimacy (cognitive, regulative, and normative legitimacies) for successful business performance.The findings show a positive correlation between firm legitimacy and AGM. Findings also show that firm NMS strategies through CPA practices positively influence AGM adoption. Additionally, environmental scanning shows the linkage between green management adoption, CPA practices, and focal firm performance. The findings show that board gender diversity impacts firm performance in foreign markets. Furthermore, the impact of the board gender diversity becomes more robust when the firms have public relations functions and or operate in countries that believe in gender parity. The finding shows that when combined, CPA and CSR strategies have complementary efforts to enhance and help organizations achieve business performance, improving firm competitiveness. Findings show that foreign firms that make political donations through PACs enjoy favorable treatment by getting awarded more government contracts than those that do not.Findings revealed that most US corporate lobbyists charge firms coming from autocratic countries premium fees compared to others, and foreign firms that cannot pay this fee face the issue of illegitimacy.Findings show that domestic firms mounted pressure on MNEs on Two fronts: first, by lobbying the host government for policy changes that focused on patronizing domestic firm suppliers, and second, by spreading unethical rumors that were aimed at vilifying MNEs from being able to penetrate local society | Engage Orientation |
| Zheng et al., 2022Ren and Gao, 2023Bucheli and DeBerge 2024Peprah et al., 2024Ma and Xue 2024Saeed et al. 2024Adomako et al., 2023Ayyagari et al., 2024Kim, and Siegel, 2024Tzeng 2023 | The article focuses on CPA strategy as a critical form of NMS strategy that posits that political ties can determine firm strategic success in foreign markets. This success, however, depends on whether the political ties are associated with the central host government or local NMS actors. This paper explains how subsidiary firms in China adopt NMS strategy to gain legitimacy. The paper focuses on integrating insight from Two multi-level (social and geopolitical) business environments that subsidiary firms confront daily.The study provides historical insight into how firms have been using nonmarket strategies to strategically plan for long-term and economic processes that aid successful internationalization. The articles focus on how new MNEs can leverage NMS strategy to gain legitimacy in institutionally voided business environments with insight from African e-commerce giant (Jumia)The study focuses on understanding the factors surrounding MNE’s decision to adopt alliance green management (AGM) across all their business operations. The study uses the embeddedness perspective to unravel NMS’s impact on the AGM decision and its benefits on firm legitimacy.The study examines board gender diversity in emerging market organizations through the lens of NMS strategy on firm performance. The study aims to understand the relationship between CPA, CSR, and firm competitiveness through the focal view of the resource-based theory. The paper examines foreign firms’ political campaign contributions through (PACs) and their impact on organizations’ access to essential political resources and government contracts in the US. The research shows how firms battle host country liability of foreignness to gain legitimacy by proposing a new theory that incorporates lobbying within NMSThe study seeks to examine how domestic firms challenge MNEs in the host country when there is political hostility between home-host countries | A dataset of Chinese TV manufacturing firms between the years 1993 and 2003 was gathered using bivariate analysis and a logistics regression model. This conceptual paper aims to theorize NMS strategy for selective subsidiary firms for de-globalization in China.The study used Archive-based methods.The study gathered data through in-depth interviews, observations, and archival data of Jumia. The study collected data from 199 firms through in-depth interviews and survey methods; ANOVA was the data analysis method.The study collected data from Chinese and Indian firm’s subsidiaries operating in foreign markets between 2008 and 2017. The data were analyzed using multiple methods of moment regression analysisThe study collected data from 2 Africans and 2 Asian countries. The study uses a hierarchical regression model to test its data.The study used published and available online PAC data on openscreets or Center for Responsive Politics and used a pairwise correlation statistics.The study used empirical data covering the years 1998–2012 and collected from the Center for Responsive Politics in the USThe study conducted a case study analysis between MNEs from Taiwan and domestic firms from China Mainland between the years 2004–2008 | Engage orientation | |
| Author | Objectives | Methods | Findings | |
|---|---|---|---|---|
| Foreign institutional ownership ( | Multiple case analysis | A firm may engage in | Engage orientation | |
| The paper aims to study the influence of political animosity in developed countries due to the strategic acquisition of firms in developed markets | The study used data from 2005 to 2011 from | Findings show that due to the increased political animosity in a developed country, EMNCs engage in nonmarket strategy through lobbying capabilities and acquire less ownership stake in a developed country to control less regulatory scrutiny. Also, due to tight legitimacy concerns in a developed market, shareholders of | Engage orientation | |
| The study assesses the relative performance effect of the top management team ( | Case analysis using data from the national collegiate athletic association ( | The study found that organizations adopt market and nonmarket strategies to influence performance outcomes. Also, the study found that TMT, | Engage orientation | |
| The article focused on industry support policies in the international market and how they affect firms’ choices of foreign market placement | Greenfield investment data was assessed from financial times (fDimarkets database) between 2004 and 2013 | The findings show that supportive foreign policies encourage new entrants into the renewable energy industries. Furthermore, adverse policy changes from One country influence how firms perceive policy in another country | NonengageOrientation | |
| The research focuses on documenting nonmarket strategy practices, including | Systematic literature review of multinational | The review grouped multinational | Engage orientation | |
| Hajmohammad | The paper’s objective is to develop a typology of response to supplier’s misconduct in achieving environmental sustainability by addressing the contentions of | Vignette-based methodology | Findings show that | Nonengage orientation |
| This research examines how firms can manage | Systematic literature review of Three articles published in the journal of multinational business review | The study provides insight into the relevant use of MNEs in countries characterized by populism and geopolitical uncertainties and advanced Four critical research gaps for future researchers ranging from (i) resilience and firm legitimacy, (ii) diversification, (iii) institutional arbitrage, (iv) integration, of MS-NMS strategy | Engage orientation | |
| The research objective is to determine the willingness of consumers to participate in | The study adopted a Mixed methodology to examine Three case studies, using qualitative Research in One and quantitative in 2 cases research design | The findings show that consumers become politically connected to an organization due to some essential shared characteristics (brand loyalty, information-seeking, issues pertinent to consumers, value-congruency, among others) with an organization’s brand over time, and this motivates consumers to become politically involved on behalf of the company or brand they shared this connection with | Engage Orientation | |
| Different organizations have different | Panel data of public firms with governance data and CEOs that engage in campaign contributions covering 1998–2018 | Findings show that the CEO’s political ideology and the current political party significantly impact firm lobbying strategies/investment and organization outcomes. Hence, when the CEO’s political party is in power, a firm may lobby aggressively to maintain and protect its strategic asset and vice versa | Engage Orientation | |
| This aims to show how Integration strategy (market and nonmarket) provides a significant edge for organizations over climate change policy. Also, why do firms engage in lobbying policies on climate change and others do not? | Using a data set of | The management of a nonmarket environment is challenging and complex when compared to the market environment. Findings show that neglecting the nonmarket environment may challenge the long-term sustainability of organizations due to climate change. The firm, therefore, needs to manage its carbon emissions and forge a sustainable relational strategy with nonmarket stakeholders to manage both market and nonmarket climate issues. Also, organization resources and capabilities are essential to combat market and nonmarket strategies to manage carbon emissions and relative policy changes in the home and host markets. The findings show that central and local political ties have conflicting performance outcomes and firms’ strategic competitive actions on the organization. The study enriched the co-evolution framework in the international business literature by integrating the yin-yang framework to broaden the economic understanding of risks and costs in political disruptions of multinational subsidiaries operating in China. The study proposes Three yin-yang frameworks to analyze | Engage Orientation | |
| The article focuses on | A dataset of Chinese | Engage orientation | ||
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