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RESEARCH PRODUCT

The Institutionalization of Political Risk Assessment by Chinese Multinational Firms

Hua WangIlan AlonHui LiuAlfredo Jiménez

subject

Social Sciences and HumanitiesInstitutionalisationEmpresas multinacionales chinasPropiedad estatalPropriété d’EtatRisque politiqueMarket economyThéorie de la dépendance des ressourcesPolitical Risk0502 economics and businessNon-market StrategyState-ownershipStratégie non marchandeResource dependence theoryLiens politiquesScope (project management)Political riskEstrategia no de mercado05 social sciencesResource Dependence TheoryTeoría de la dependencia de recursosGeneral MedicineChinese MNEsInternationalizationMultinational corporationScale (social sciences)Multinationales chinoisesRiesgo político050211 marketingSciences Humaines et SocialesBusinessConexiones políticas050203 business & managementPolitical Connections

description

Some researchers have claimed that Chinese firms are impervious to political risk, calling into question the institutionalization of political risk by Chinese firms. Building on resource dependence theory and the literature on non-market strategies, this study finds significant impact by ownership structure, firm scale, and the degree of internationalization on the institutionalization of political risk assessments (IPRA) by Chinese firms. As such, state-owned firms and larger firms cultivate a higher level of IPRA. We find a positive impact of a firm’s scale and scope of internationalization, but insignificant impact of depth of internationalization.

yearjournalcountryeditionlanguage
2021-05-17
10.7202/1077433arhttps://doi.org/10.7202/1077433ar