Institutional agency by MNEs: A review and future research agenda

Abstract

Although the study of institutional agency by MNEs is gaining traction in the IB literature, there are gaps in our understanding of how MNEs purposively engage with institutions in home and host markets. By systematically reviewing 73 articles in 26 journals over a 17-year period, I assess the embeddedness of institutional agency in the IB field; and present key findings along societal and organizational field triggers, individual and organizational enablers and types of institutional agency, as well as the consequences for institutional maintenance, creation and transformation. The review demonstrates that very few IB studies explicitly examine MNEs' intentional actions in relation to institutions. Consequently, I call for an advancement in MNE strategy and structure debates to account for the ways in which MNEs can address institutional contradictions. I develop propositions on these as well as micro-level activities that offer opportunities for MNEs to display institutional agency, setting a clear agenda for future research.