The Strategic Responses of the Subsidiaries of Multinational Enterprises During Institutional Upheaval

Every market has a set of institutions that govern the ways that societal interactions take place, including business transactions. Multinational enterprises are global entities that have operations in many different countries in the world and have to adapt their processes and strategies to local institutions, which are often very different from those in their home countries, particularly in emerging and developing economies. This research employs the concept of institutional work to investigate the strategic responses of the subsidiaries of multinational enterprises operating in Morocco to local institutional pressures during stable periods as well as periods characterized by institutional upheaval, as was the case following the Arab Spring events in the Middle East. The study found that the subsidiaries of multinational enterprises are able to respond strategically and proactively in their host environments, through their everyday actions such as interactions with local actors or though highly visible actions such as the introduction of a new norm, standard or practice. Furthermore, the research suggests that during institutional change, the subsidiaries of multinational enterprises have a greater opportunity to act strategically and to capitalize on the transitions occurring to bring about further change to gain a more favorable business environment