Corporate political activity and location-based advantage: MNE responses to institutional transformation in Uganda's electricity industry

Charles Mbalyohere, Thomas C. C. Lawton, Dev Boojihawon, Howard Viney

    Research output: Contribution to journalArticlepeer-review

    21 Citations (Scopus)

    Abstract

    We examine how multinational enterprises (MNEs) employ political strategies in response to location-based, institutional transformations in new frontier African markets. Specifically, we explore the heterogeneous corporate political activities of advanced and emerging market MNEs in Uganda’s electricity industry, as they respond to and influence locational advantage using diverse political capabilities. We argue that, in institutionally fragile, new frontier markets, Dunning’s OLI paradigm is more theoretically robust and managerially relevant when combined with a political perspective. Effective MNE political strategies in these markets rely on nonmarket capabilities in political stakeholder engagement, community embeddedness, regional understanding, and responsiveness to stages of institutionalization.
    Original languageEnglish
    Pages (from-to)743-759
    Number of pages17
    JournalJournal of World Business
    Volume52
    Issue number6
    Early online date27 Jun 2017
    DOIs
    Publication statusPublished - 1 Nov 2017

    Keywords

    • corporate political activity
    • multinational enterprise
    • location-based advantage
    • electricity industry
    • Uganda

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