MNE as a catalyst for field-level institutional change in the Russian bakery sector. Issue 4 (11th November 2019)

• Record Type: Journal Article
• Authors: Pelto, Elina; Karhu, Anna
• Is Part Of: Baltic journal of management. Volume 14:Issue 4(2019)
• Page Start: 676
• Page End: 697
• Publication Date: 2019-11-11
• Subjects: Russia -- Case study -- Emerging markets -- Institutional change -- Institutional logics -- MNE entry; Management -- Baltic States -- Periodicals; 658.009485
• DOI: 10.1108/BJM-06-2018-0231
• Languages: English
• ISSNs: 1746-5265

Abstract

Abstract : Purpose: The purpose of this paper is to focus on analysing how foreign entry by a multinational enterprise (MNE) can act as a catalyst for change in field-level institutional logics in a transition economy context. Design/methodology/approach: The paper presents an empirical single-case study on the effects of an MNE's entry on a particular industry in an emerging market's context. The empirical study follows abductive reasoning; based on the interplay of previous literature and empirical observations, it identifies mechanism through which MNEs can catalyse change in field-level institutional logics. Findings: The study shows that in addition to general market transition influenced by state-level policies, individual companies' strategies, actions and market behaviour also significantly contribute to the development of a host industry's field-level institutional logics. More precisely, a case study of a Finnish MNE's entry into the Russian bakery market identifies the mechanisms and various change pathways through which the entry of a single MNE into a transition economy can significantly alter the institutional logics of a particular industry. Originality/value: The study employs a novel perspective that incorporates the ideas, concepts and insights of an institutional logics perspective to MNE entry research for empirical analysis and theory building.