Skip to main navigation menu Skip to main content Skip to site footer

Social strategies of emerging market multinationals in developing countries: The case of Polish firms in Sub-Saharan Africa

DOI:

https://doi.org/10.15678/IER.2024.1003.04

Abstract

Objective: The objective of the article is to explore the social strategies of Polish multinational enterprises (MNEs) entering Sub-Saharan Africa (SSA).

Research Design & Methods: We employed qualitative research methods and conducted a comparative case study of three Polish MNEs operating in SSA.

Findings: The social involvement of Polish companies in SSA is very limited. Forms of community involvement include knowledge-sharing and sporadic philanthropic activities, usually initiated by Polish stakeholders located in SSA. Polish companies engage socially because of market and relational reasons.

Implications & Recommendations: We developed a theoretical model explaining the low importance of social strategies in the activities of Polish firms in SSA. We argue that none of the companies surveyed felt strong stakeholder pressure in either the country of origin or the country of destination. We also explain the reasons for this.

Contribution & Value Added: We identified key factors shaping the social strategies of MNEs abroad and included them in a theoretical model to be tested in further research.

Keywords

Poland, Sub-Saharan Africa, multinational enterprise, social strategy, stakeholder

(PDF) Save

Author Biography

Aleksandra Wąsowska

Associate Professor, Chair of the Strategy and Leadership Department, Faculty of Management, University of Warsaw, Poland. Her research interests include entrepreneurship, international management, and organizational behaviour.

Krzysztof Obłój

Full Professor, Chair of the Strategic Management Department, Kozminski University, Poland. Also a part-time professor at the University of Warsaw, Poland. Former President of the European International Business Academy, Fellow of EIBA, and member of the SMS and AIB. His research interests include strategy, entrepreneurship, and international business.


References

  1. Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility a review and research agenda. Journal of Management, 38(4), 932-968. https://doi.org/10.1177/0149206311436079
  2. An, Y.H., Lew, Y.K., & Khan, Z. (2024). Non-market strategies in weak institutional environments: The case of MNE subsidiaries in Cameroon. Journal of International Management, 30(3), 101140. https://doi.org/10.1016/j.intman.2024.101140
  3. Baron, D.P. (1995). Integrated strategy: Market and non-market components. California Management Review, 39(2), 47-65. https://doi.org/10.2307/41165788
  4. Bıçakcıoğlu-Peynirci, N. (2023). Internationalisation of emerging market multinational enterprises: A systematic literature review and future directions. Journal of Business Research, 164(C). https://doi.org/10.1016/j.jbusres.2023.114002
  5. Bruton, G.D., Filatotchev, I., Si, S., & Wright, M. (2013). Entrepreneurship and Strategy in Emerging Economies. Strategic Entrepreneurship Journal, 7(3), 169-180. https://doi.org/10.1002/sej.1159
  6. Cavusgil, S.T. (2021). Advancing knowledge on emerging markets: Past and future research in perspective. International Business Review, 30(2), 1-11. 101796. https://doi.org/10.1016/j.ibusrev.2021.101796
  7. Chan, Ch.M., & Makino, S. (2007). Legitimacy and multi-level institutional environments: implications for foreign subsidiary ownership structure. Journal of International Business Studies, 38(4), 621-638. https://doi.org/10.1057/palgrave.jibs.8400283
  8. Cibian, S. (2017). Central and Eastern Europe and Sub-Saharan Africa. Prospect for sustained re-engagement. Chatham House. Retrieved from https://www.bosch-stiftung.de/sites/default/files/publications/pdf/2018-04/Research_Paper_CEE-Sub-Saharan-Africa_Cibian.pdf, on June 18, 2024.
  9. D’Amelio, M., Garrone, P., & Piscitello, L. (2016). Can Multinational Enterprises Light up Developing Countries?. World Development, 88(C), 12-32. https://doi.org/10.1016/10.1016/j.worlddev.2016.06.018
  10. Darendeli, I.S., & Hill, T.L. (2016). Uncovering the complex relationships between political risk and MNE firm legitimacy: Insights from Libya. Journal of International Business Studies, 47(1), 68-92. https://doi.org/10.1057/jibs.2015.27
  11. Egri, C.P., & Ralston, D.A. (2008). Corporate responsibility: A review of international management research from 1998 to 2007. Journal of International Management, 14(4), 319-339. https://doi.org/10.1016/j.intman.2007.09.003
  12. Freitas, A., & White, L. (2015). Brazilian firms in Africa: what makes them different?. In Adeleye, I., Ibeh, K., Kinoti, A., White L. (Eds.).The changing dynamics of International Business in Africa (pp. 76-97). Palgrave Macmillan.
  13. Frynas, J.G., & Yamahaki, C. (2016). Corporate social responsibility: review and roadmap of theoretical perspectives. Business Ethics: A European Review, 25(3), 258-285. https://doi.org/10.1111/beer.12115
  14. Frynas, J.G., Child, J., & Tarba, S. (2017). Non‐Market Social and Political Strategies – New Integrative Approaches and Interdisciplinary Borrowings. British Journal of Management, 28(4), 559-574. https://doi.org/10.1111/1467-8551.12253
  15. Garrone, P., Piscitello, L., & D’Amelio, M. (2019). Multinational enterprises and the provision of collective goods in developing countries under formal and informal institutional voids. The case of electricity in Sub-Saharan Africa. Journal of International Management, 25(2), 100650. https://doi.org/10.1016/j.intman.2018.09.002
  16. Giuliani, E., Nieri, F., & Vezzulli, A. (2023). Big Profits, Big Harm? Exploring the Link Between Firm Financial Performance and Human Rights Misbehavior. Business & Society, 62(6), 1248-1299. https://doi.org/10.1177/00076503221144994
  17. Henisz, W. (2017). Corporate Diplomacy: Building Reputations and Relationships with External Stakeholders. Routledge.
  18. Husted, B.W., & Allen, D.B. (2000). Is It Ethical to Use Ethics as Strategy?. Journal of Business Ethics, 27, 21-31. https://doi.org/10.1023/A:1006422704548
  19. Iborra, M., & Riera, M. (2023). Corporate social irresponsibility: What we know and what we need to know. Corporate Social Responsibility and Environmental Management, 30(3), 1421-1439. https://doi.org/10.1002/csr.2428
  20. Jackson, G., & Deeg, R. (2008). Comparing capitalisms: understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39(4), 540-561. https://doi.org/10.1057/palgrave.jibs.8400375
  21. Kostova, T., & Zaheer, S. (1999). Organisational legitimacy under condition of complexity: the case of multinational enterprise. Academy of Management Review, 24(1), 64-81. https://doi.org/10.2307/259037
  22. Lu, J.W. & Xu, D. (2006). Growth and survival of international joint ventures: an external internal legitimacy perspective. Journal of Management, 32(3), 426-48. https://doi.org/10.1177/0149206305281399
  23. Luo, Y. (2006). Political behavior, social responsibility, and perceived corruption: a structuration perspective. Journal of International Business Studies, 37(6), 747-766. https://doi.org/10.1057/palgrave.jibs.8400224
  24. Luo, Y., Zhang, H., & Bu, J. (2019). Developed country MNEs investing in developing economies: Progress and prospect. Journal of International Business Studies, 50(4), 633-667. https://doi.org/10.1057/s41267-019-00230-y
  25. Maciejewski, M., & Wach, K. (2019). International Startups from Poland: Born Global or Born Regional?. Central European Management Journal, 27(1), 60-83. https://doi.org/10.7206/jmba.ce.2450-7814.247
  26. Marano, V., Tashman, P., & Kostova, T. (2017). Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises. Journal of International Business Studies, 48, 386-408. https://doi.org/10.1057/jibs.2016.17
  27. Mathews, J.A. (2006). Dragon multinationals: new players in the 21st century globalisation. Asia Pacific Journal of Management, 23(1), 5-27. https://doi.org/10.1007/s10490-006-6113-0
  28. Mellahi, K., Frynes, J.G., Sun, P., & Siegel, D. (2016). A Review of the Nonmarket Strategy Literature: Toward a Multi-Theoretical Integration. Journal of Management, 42(1), 143-173. https://doi.org/10.1177/0149206315617241
  29. Meyer, K., & Thein, H.H. (2014). Business under adverse home country institutions: The case of international sanctions against Myanmar. Journal of World Business, 49(1), 156-171. https://doi.org/10.1016/j.jwb.2013.04.005
  30. Meyer, K., Ding, Y., Li, J., & Zhang, H. (2014). Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad. Journal of International Business Studies, 45(8), 1005-1028. https://doi.org/10.1057/jibs.2014.15
  31. Meyer, K., Mudambi, R., & Narula, R. (2011). Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness. Journal of Management Studies, 48(2), 235-252. https://doi.org/10.1111/j.1467-6486.2010.00968.x
  32. MSCI (2023). Market Classification. Morgan Stanley Capital International. Retrieved from https://www.msci.com/our-solutions/indexes/market-classification on June 17, 2024.
  33. Obloj, T., Obloj, K., & Pratt, M.G. (2010). Dominant Logic and Entrepreneurial Firms‘ Performance in a Transition Economy. Entrepreneurship Theory and Practice, 34(1), 151-170. https://doi.org/10.1111/j.1540-6520.2009.00367.x
  34. Oetzel, J., & Doh, J.P. (2009). MNEs and development: a review and reconceptualisation. Journal of World Business, 44(2), 108-120. https://doi.org/10.1016/j.jwb.2008.05.001
  35. Olabisi, J., Kwesiga, E., Juma, N., & Tang, Z. (2019). Stakeholder Transformation Process: The Journey of an Indigenous Community. Journal of Business Ethics, 159(1), 1-21. https://doi.org/10.1007/s10551-017-3759-0
  36. Pant, A., & Ramachandran, J. (2012). Legitimacy beyond borders: Indian software services firms in the United States, 1984 to 2004. Global Strategy Journal, 2(3), 224-243. https://doi.org/10.1111/j.2042-5805.2012.01037.x
  37. Park, B.I., & Pervez, G.N., (2015). Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective. Journal of World Business, 50(1), 192-204. https://doi.org/10.1016/j.jwb.2014.04.007
  38. Pisani, N., Kourula, A., Kolk, A., & Meijer, R. (2017). How global is international CSR research? Insights and recommendations from a systematic review. Journal of World Business, 52(5), 591-614. https://doi.org/10.1016/j.jwb.2017.05.003
  39. Rosińska-Bukowska, M. (2022). Evolution of corporate social responsibility standards and their implementation in the strategies of the most powerful corporations: Guidelines for the CSR 5.0 concept. International Entrepreneurship Review, 8(2), 25-35. https://doi.org/10.15678/IER.2022.0802.02
  40. Rzeczpospolita (2013). Afryka dzika dawno odkryta. Retrieved from https://www.rp.pl/ekonomia/art12715531-afryka-dzika-dawno-odkryta on June 18, 2024.
  41. Scherer, A.G., Palazzo, G., & Seidl, D. (2013). Managing legitimacy in complex and heterogeneous environments: Sustainable development in a globalized world. Journal of Management Studies, 50(2), 259-284. https://doi.org/10.2307/41166177
  42. Selmier II, W., Newenham-Kahindi, A., & Oh, C. (2015). Understanding the words of relationships: Language as an essential tool to manage CSR in communities of place. Journal of International Business Studies, 46, 153-179. https://doi.org/10.1057/jibs.2014.58
  43. Spar, D.L., & La Mure, L.T. (2003). The power of activism. Assessing the impact of NGOs on Global Business, California Management Review, 45(1), 78-101. https://doi.org/10.2307/41166177
  44. Tashman, P., Marano, V., & Kostova, T. (2019). Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals. Journal of International Business Studies, 50(2), 153-171. https://doi.org/10.1057/s41267-018-0171-7
  45. Trąpczyński, P., Gorynia, M., Nowak, & Wolniak, R. (2015). Outward FDI of Polish firms: The role of motives, entry modes and location factors. Journal for East European Management Studies, 20(3), 328-359. https://www.jstor.org/stable/24573142
  46. Vertigans, S., Idowu, S.O., & Schmidpeter, R. (2016). Corporate Social Responsibility in Sub-Saharan Africa, Springer.
  47. Wąsowska, A, Obłój, K, & Kopiński, D (2024) Strangers in a strange land: legitimacy formation by Polish multinationals venturing into Sub-Saharan Africa, Management International Review, 64(4), 671-700. https://doi.org/10.1007/s11575-024-00548-2
  48. Zhao, M., Park, S.H., & Zhou, N. (2014). MNC strategy and social adaptation in emerging markets. Journal of International Business Studies, 45(7), 842-861. https://doi.org/10.1057/jibs.2014.8
  49. Zysk, W. (2016). Responsibility in the activities of transnational companies. International Entrepreneurship Review, 2(2), 233-245. Retrieved from https://ier.uek.krakow.pl/index.php/pm/article/view/1126 on June 18, 2023.

Downloads

Download data is not yet available.

Similar Articles

41-50 of 162

You may also start an advanced similarity search for this article.