Legitimation strategies of MNE subsidiaries in HRM practice implementation

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract / Description of output

This paper explores how and why multinational enterprise (MNE) subsidiary actively seek for and restore legitimacy in host market. In particular, this study examines the dynamics and levels of legitimacy experienced by multinational enterprise (MNE) subsidiaries during the transfer and implementation of human resource management (HRM) practices. Drawing on prior research on legitimacy acquisition and strategic approaches of subsidiaries, we explore the strategies employed by subsidiaries in the legitimation process, the conditions under which these strategies are enacted, and the levels of legitimacy achieved. Specifically, we investigate the active role of MNE subsidiaries as institutional entrepreneurs, actively seeking and restoring legitimacy from both internal and external stakeholders in the host country environment. Using the case of an IKEA subsidiary in Korea, we address questions related to the acquisition, loss, and restoration of legitimacy, the strategic actions taken by subsidiaries, and the drivers influencing legitimacy. Our study contributes to the literature by providing a process-based explanation of how subsidiaries maintain their legitimacy while addressing legitimacy crises internally and externally. Additionally, we extend the understanding of subsidiary legitimacy by considering the active agency of subsidiaries as institutional entrepreneurs to move beyond mere acceptance to encompass various levels of legitimacy.
Original languageEnglish
Title of host publicationProceedings of the 39th Euro-Asia Management Studies Association (EAMSA) Annual Conference
Publication statusAccepted/In press - 20 Sept 2023
EventThe 39th Euro-Asia Management Studies Association (EAMSA) Annual Conference - Stockholm, Sweden
Duration: 22 Nov 202325 Nov 2023
https://www.trippus.se/web/registration/registration.aspx?view=registration&idcategory=AB0ILBCkS0JiVlvMPoUV6atj4mc-Oe8QD8obGMOxiQEY04XgO8aFEay5gfEFx4BaZoushaw5XcaX&ln=eng

Conference

ConferenceThe 39th Euro-Asia Management Studies Association (EAMSA) Annual Conference
Country/TerritorySweden
CityStockholm
Period22/11/2325/11/23
Internet address

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