Corporate diplomacy: the dimensional structure and outcomes
Cross Cultural & Strategic Management
ISSN: 2059-5794
Article publication date: 19 March 2024
Issue publication date: 26 April 2024
Abstract
Purpose
Given the great upheaval in the international situation and the increasing operating risk in international business, research on corporate diplomacy is thriving. However, it still lacks clear conceptualization and operationalization. Based on social capital theory, our study conceptualizes corporate diplomacy as a three-dimensional construct and quantifies its distinct and combined impacts on multinational enterprises’ (MNE) subsidiary performance.
Design/methodology/approach
This research analyzes 134 responses collected from a questionnaire survey among key informants in Chinese MNEs using the regression method.
Findings
This research finds that corporate diplomacy is positively correlated with MNEs’ subsidiary performance. Specifically, compatriot-oriented diplomacy is the most effective, followed sequentially by host-partner-oriented and host-regulator-oriented diplomacy. In addition, compatriot-oriented diplomacy substitutes for host-partner-oriented diplomacy but complements host-regulator-oriented diplomacy in enhancing subsidiary performance.
Originality/value
Our research enriches the conceptualization and operationalization of corporate diplomacy and provides a nuanced view of its distinct and combined effects on MNEs’ subsidiary performance.
Keywords
Acknowledgements
The authors would like to acknowledge the grants from National Natural Science Foundation of China (NO.72272021).
Citation
Jiang, S., Teng, W., Huang, Y. and Zhang, X. (2024), "Corporate diplomacy: the dimensional structure and outcomes", Cross Cultural & Strategic Management, Vol. 31 No. 2, pp. 335-355. https://doi.org/10.1108/CCSM-07-2023-0126
Publisher
:Emerald Publishing Limited
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