MNE and multiple embeddedness: A case study of MNE–NGO collaboration in saving the Baltic Sea

Abstract

Abstract Purpose This chapter analyses the multiple embeddedness of MNEs, and their participation in solving contemporary societal issues. We aim to increase understanding on the relational processes and network dynamics present in MNEs’ participation in cross-sector partnerships. Design/methodology/approach Our study addresses the issue of the poor ecological state of the Baltic Sea and illustrates the early developments in cross-sector collaboration. We build on a single exploratory case study of the cooperation of one MNE (IBM) with an environmental NGO (BSAG) in Finland. We analyse how participation in the cross-sector collaboration manifests itself in the external and internal networks of the MNE. Findings We show that an initiative by the NGO to participate in environmental work was actively adopted within the MNE and led to network changes. These changes concerned both the activation of existing links and the establishment of new links with such actors as authorities and research institutes. The NGO acted as a catalyser and cultural mediator to create a bridge between the MNE and governmental actors. Research implications There is a need to investigate cross-sector collaboration in other contexts – particularly from the perspective of MNEs and (international) business networks. Questions such as how do enduring (business and socio-political) relationships emerge from MNE’s participation in issue networks and how technology that has been developed to solve a specific societal issue may be translated into commercial solutions are especially promising. We also urge scholars to investigate the ties, texture and dynamics (including tensions) of business relationships with those of public actors and civil society. Practical implications Participation in cross-sector initiatives may grant an MNE a forerunner position in the creation of new sustainable markets and technologies. It may also create an opportunity to influence policymakers and build new socio-political networks. From the perspective of a subsidiary of an MNE, engagement with cross-sector partnerships may strengthen its voice within the MNE network. Originality/value Our study contributes to the understanding of the relationship dynamics between actors in cross-sector collaboration around a societal (environmental) issue. Our analysis illustrates the embeddedness of MNE networks, where actions in the regional and global networks (the representatives of the headquarters) overlap with and strengthen the local actions of the subsidiary.