Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain
Emerging market multinational enterprises (EMNEs) are rapidly increasing their foreign direct investment around the world and, in particular, in the countries of Southern Europe. Although, international business scholars have been quick to put the spotlight on this new phenomenon, the cultural adapt...
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doaj-325fc9f418184862a31f547ab68befc32020-11-24T21:40:53ZengUniversitat de BarcelonaJournal of Evolutionary Studies in Business2385-71372016-07-011220123410.1344/jesb2016.2.j01714501Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in SpainFelix Barahona Márquez0Fariza Achcaoucaou1Paloma Miravitlles Matamoros2Universitat de Barcelona (UB)Universitat de Barcelona (UB)Universitat de Barcelona (UB)Emerging market multinational enterprises (EMNEs) are rapidly increasing their foreign direct investment around the world and, in particular, in the countries of Southern Europe. Although, international business scholars have been quick to put the spotlight on this new phenomenon, the cultural adaptation of EMNE subsidiaries to host-country environments, especially those of Europe, has remained largely unexamined. This question acquires particular relevance owing to the considerable cultural distance between emerging and developed economies and the isomorphic conflicts that can arise at the subsidiary level. Here, we examine this situation by reporting two case studies of Chinese subsidiaries operating in Spain. Our findings suggest that guanxi – the deep-rooted system of personal relations and social connections founded on mutual interests – plays a major role in the search for legitimacy undertaken by Chinese subsidiaries located in Southern Europe. The adoption and adaptation of Chinese cultural values and practices to the local environment allow the subsidiary to align itself with the culture of the parent organization at the same time as it embeds itself in the host environment, thus resolving any isomorphic conflicts.http://revistes.ub.edu/index.php/JESB/article/view/15662EMNEsSubsidiariesLiability of foreignnessLegitimacyCross-cultural managementCultural adaptationExpatriates |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Felix Barahona Márquez Fariza Achcaoucaou Paloma Miravitlles Matamoros |
spellingShingle |
Felix Barahona Márquez Fariza Achcaoucaou Paloma Miravitlles Matamoros Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain Journal of Evolutionary Studies in Business EMNEs Subsidiaries Liability of foreignness Legitimacy Cross-cultural management Cultural adaptation Expatriates |
author_facet |
Felix Barahona Márquez Fariza Achcaoucaou Paloma Miravitlles Matamoros |
author_sort |
Felix Barahona Márquez |
title |
Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain |
title_short |
Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain |
title_full |
Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain |
title_fullStr |
Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain |
title_full_unstemmed |
Mitigating the Isomorphic Conflicts Faced by EMNEs in Southern Europe: The Case of Chinese Subsidiaries in Spain |
title_sort |
mitigating the isomorphic conflicts faced by emnes in southern europe: the case of chinese subsidiaries in spain |
publisher |
Universitat de Barcelona |
series |
Journal of Evolutionary Studies in Business |
issn |
2385-7137 |
publishDate |
2016-07-01 |
description |
Emerging market multinational enterprises (EMNEs) are rapidly increasing their foreign direct investment around the world and, in particular, in the countries of Southern Europe. Although, international business scholars have been quick to put the spotlight on this new phenomenon, the cultural adaptation of EMNE subsidiaries to host-country environments, especially those of Europe, has remained largely unexamined. This question acquires particular relevance owing to the considerable cultural distance between emerging and developed economies and the isomorphic conflicts that can arise at the subsidiary level. Here, we examine this situation by reporting two case studies of Chinese subsidiaries operating in Spain. Our findings suggest that guanxi – the deep-rooted system of personal relations and social connections founded on mutual interests – plays a major role in the search for legitimacy undertaken by Chinese subsidiaries located in Southern Europe. The adoption and adaptation of Chinese cultural values and practices to the local environment allow the subsidiary to align itself with the culture of the parent organization at the same time as it embeds itself in the host environment, thus resolving any isomorphic conflicts. |
topic |
EMNEs Subsidiaries Liability of foreignness Legitimacy Cross-cultural management Cultural adaptation Expatriates |
url |
http://revistes.ub.edu/index.php/JESB/article/view/15662 |
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