Managing Political Actors Through Network Partners: Market-Driving Multinationals in Emerging Markets

Abstract

This study investigates how firms can influence political actors on emerging markets through their network partners in order to support a market-driving strategy. On emerging markets, political actors typically play a more central role than is the case on mature western markets. However, most firms do not have the understanding of or influence upon political actors in emerging markets that is required to interact with them directly. Consequently, gaining the support of different network partners will be essential. We discuss how network collaborators may manage political factors in order to influence four different dimensions of the market-driving strategy. We have conducted in-depth case studies of two Swedish firms and their activities in India. Based upon this we develop a conceptual model and discuss how a firm can collaborate with partners in order to influence political actors proactively as well as to reactively reduce harmful effects of political decisions.

Citation

Elg, U., Schaumann, J. and Ghauri, P. (2012), "Managing Political Actors Through Network Partners: Market-Driving Multinationals in Emerging Markets", Hadjikhani, A., Elg, U. and Ghauri, P. (Ed.) Business, Society and Politics (International Business and Management, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 133-153. https://doi.org/10.1108/S1876-066X(2012)0000028014