Politically Connected Firms, Elite Ties and Internationalisation: The Case of ENRC

Abstract

This paper argues that a location or firm-based understanding is inadequate to conceptualize the process of internationalisation. The main argument is that elite ties and political space exert significant influence over corporate activity within and beyond national context. The empirical evidence of the analysis is based on the internationalisation process of the Eurasian Natural Resources Corporation (ENRC) in the UK's financial markets. We follow a novel approach: rather than taking internationalisation as a rationalized process of organisational deployment, our analysis shows how individual actors, political connections and the City institutions play a paramount role through a complex web of relations. These networks form new corporate geographies and are in constant contact with regulatory institutions with varying degrees of cooperation and conflict. The preliminary findings presented here point out that international elite networks override firm boundaries and help maximize diverse individual benefits at the expense of minority shareholders, good governance and the public interest.