MNE as a catalyst for field-level institutional change in the Russian bakery sector

Abstract

Purpose

The purpose of this paper is to focus on analysing how foreign entry by a multinational enterprise (MNE) can act as a catalyst for change in field-level institutional logics in a transition economy context.

Design/methodology/approach

The paper presents an empirical single-case study on the effects of an MNE’s entry on a particular industry in an emerging market’s context. The empirical study follows abductive reasoning; based on the interplay of previous literature and empirical observations, it identifies mechanism through which MNEs can catalyse change in field-level institutional logics.

Findings

The study shows that in addition to general market transition influenced by state-level policies, individual companies’ strategies, actions and market behaviour also significantly contribute to the development of a host industry’s field-level institutional logics. More precisely, a case study of a Finnish MNE’s entry into the Russian bakery market identifies the mechanisms and various change pathways through which the entry of a single MNE into a transition economy can significantly alter the institutional logics of a particular industry.

Originality/value

The study employs a novel perspective that incorporates the ideas, concepts and insights of an institutional logics perspective to MNE entry research for empirical analysis and theory building.

Citation

Pelto, E. and Karhu, A. (2019), "MNE as a catalyst for field-level institutional change in the Russian bakery sector", Baltic Journal of Management, Vol. 14 No. 4, pp. 676-697. https://doi.org/10.1108/BJM-06-2018-0231