The Role of Politics for Firms’ Internationalization

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We disaggregate the notion of ‘politics of internationalization’ through identification of a set of distinct dimensions in which politics affect firm internationalization.

We find that EMNE strategies are becoming more entangled with those of governments, political parties, lobbyists, and other formal and informal institutions. In emerging economies, the state often plays a relatively active role in the economy, and EMNE strategies are more conditioned by politics, policies, and non-market considerations.

We argue that the ability to leverage politics is becoming more important for the competitive advantage of EMNEs, and firms are increasingly engaging in political activities through nonmarket strategies.

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