My research interests relate to firms’ strategic responses to institutional demands from their environment in terms of corporate political strategies (CPS). First, I aim to shed more light on the question why such strategic responses differ across institutional contexts. I am especially intrigued by the complexity of institutional con-texts, which are subject to change over time, and characterized by a multitude of different actors. Second, I seek to advance research by emphasizing and understanding the role of changing CPS for firm performance.
Klopf, Patricia, Doh, Jonathan, & Nell, Phillip C., "Corporate Political Strategy as a Dynamic Process" - Job Market Paper (Dissertation Paper). Preparing for submission to Academy of Management Review
Klopf, Patricia, & Nell, Phillip C., "Caught in the Middle: MNC Subsidiaries’ Use of External and Internal Corporate Political Strategies to Cope with Institutional Duality" - Dissertation Paper. Data collection ongoing. Target: Journal of International Business Studies
Klopf, Patricia, "Framing Airbnb and the Home Sharing Economy: Corporate Political Strategy in the Dynamic Regulatory Context of a Nascent Ecosystem" - Dissertation Paper. Data collection and analysis ongoing. Target: Organization Science
Klopf, Patricia, & Nell, Phillip C. (2018), "How ‘Space’ and ‘Place’ Influence Subsidiary Host Country Political Embeddedness" - International Business Review
Abstract: As a part of multinational corporations (MNCs), subsidiaries operate in distinct host countries and have to deal with their external context. Host country political embeddedness, in particular, helps subsidiaries to obtain knowledge and understanding of the regulatory and political context, and to get access to local networks. Moreover, they get some guidance and support from their headquarters. Distance between MNC home and host countries, however, alienates subsidiaries from the MNC and influences the extent of subsidiary host country political embeddedness. We suggest that the host country political and regulatory context moderates the effect of distance on subsidiary host country political embeddedness by reducing the need and/or value of headquarters support. Using a sample of 124 European manufacturing subsidiaries, we find that distance (space) and context (place) matter jointly: the impact of distance is stronger for subsidiaries that operate in host countries with low governance quality and low political stability in place.
Muellner, Jakob, Klopf, Patricia, & Nell, Phillip C. (2017), "Trojan Horses or Local Allies: Host-Country National Managers in Developing Market Subsidiaries" - Journal of International Management
Abstract: We investigate a multinational corporation's (MNC) decision to appoint host-country national (HCN) managers to foreign subsidiaries based on the institutional context of and familiarity with the host country. HCN managers are commonly associated with specialized knowledge, superior responsiveness, and higher legitimacy. Yet, we argue that local familiarity of HCNs can also be perceived as risky or harmful by MNC parents. We analyze how formal and informal institutions affect the trade-off between positive effects and potential costs associated with HCN managers (“Local allies” vs. “Trojan horses”). We find that legal institutions protect foreign MNCs from potential costs, encourage the use of HCNs and reinforce their benefits. Corruption and corruption distance, however, increase perceived costs associated with HCN managers up to a point at which they outweigh their perceived benefits.
Holm, Alison E., Decreton, Benoit, Nell, Phillip C., & Klopf, Patricia (2017), "The Dynamic Response Process to Conflicting Institutional Demands in MNC Subsidiaries – An Inductive Study in the Sub-Saharan African E-Commerce Sector" - Global Strategy Journal
Abstract: In this article, we examine responses to the conflicting institutional demands faced by an e‐commerce subsidiary located in Sub‐Saharan Africa and headquartered in Europe. Following an inductive approach, we gathered data from a six‐month participant‐observation study and interviews with local managers. Our findings show that the subsidiary managers responded to conflicting institutional demands in a dynamic way, taking one response after the other. In some cases, the subsidiary managers responded in a way that they thought would be satisfactory, but subsequent pressures from their headquarters or their local environment pushed them to adopt a new response. In other cases, the subsidiary managers intentionally adopted responses knowing they would (have to) adopt another response later in the process.
Jiménez, Alfredo, Benito-Osorio, Diana, Puck, Jonas, & Klopf, Patricia (2018), "The Multi-Faceted Role of Experience in Dealing with Policy Risk: The Impact of Intensity and Diversity of Experiences" - International Business Review
Abstract: Firms learn from their previous experience, transfom routines into knowledge and thus develop capabilities. This holds for the market- and the non-market environment likewise. Experience is therefore useful to deal with policy risk arising from potential discretional and opportunistic behavior of political authorities, such as governments. We argue that firms can not only learn from the intensity of experience dealing with policy risk, but also from the exposure to a more diverse range of policy risk across different political environments. Testing a sample of 164 Spanish multinational firms, we find that the positive impact of diversity of experiences on the scope of internationalization is more important than the intensity of experience. Moreover, we also find a moderating impact between both types of experience. Overall, our findings emphasize the multi-faceted nature of experience and the need to disentangle the impact and interrelationships of its different components.