Publication Type

Journal Article

Version

publishedVersion

Publication Date

6-2024

Abstract

International business scholars have recognized the impact of political and economic nationalism on the multinational enterprise (MNE). We complement these approaches by highlighting the sociological manifestations of nationalism and their implications for the MNE. We argue that nationalist sentiments, i.e. widely-shared assumptions of superiority over other nations and cultures, constitute an under-researched but critical element in international business (IB). Drawing insights from organizational sociology, we elucidate how nationalist sentiments manifest in the MNE’s external and internal environment. Specifically, we suggest that nationalist sentiments accentuate national institutional logics, generate status-based categorizations of foreign and domestic firms, and heighten emphasis on national organizational identities. These manifestations impact on the MNE’s operations by limiting room for hybridization of dissimilar practices and routines, increasing the risk of discrimination and stereotyping by local audiences, and entrenching resistance to foreign ideas and practices among organizational members. We suggest that MNEs have three strategic choices in responding to nationalist sentiments: avoid their manifestations, mitigate their implications, or leverage nationalist sentiments to the MNE’s advantage. In sum, our framework provides a starting point for IB scholars to examine the strategic implications of nationalist sentiments for the MNE.

Keywords

Nationalism, institutional logics, categories, status, organizational identity

Discipline

Organizational Behavior and Theory | Politics and Social Change | Work, Economy and Organizations

Research Areas

Strategy and Organisation

Publication

Journal of International Business Studies

Volume

55

First Page

825

Last Page

839

ISSN

0047-2506

Identifier

10.1057/s41267-024-00713-7

Publisher

Palgrave Macmillan

Embargo Period

5-8-2024

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Additional URL

https://doi.org/10.1057/s41267-024-00713-7

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