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Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia
DOI link for Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia
Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia book
Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia
DOI link for Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia
Institutional voids and strategic responses by multinational corporations in Base of the Pyramid markets in Asia book
ABSTRACT
In Base of the Pyramid (BOP) markets multinational corporations will inevitably encounter situations where institutions are weak or absent. This contribution critically reflects on how institutional voids act as barriers, and how they can be counteracted with strategic responses and be used as opportunities for growth in Asian markets. Alongside regulatory/political risks and their strategic responses, focus is placed on cultural-cognitive and normative circumstances that create institutional voids and demand specific strategic responses. The assimilation of the framework with three different institutional forces for BOP markets extends opportunities for how multinational corporations can disrupt and shape institutional voids. When overcoming potential barriers with strategic responses, they can achieve success and sustainable development in Asian markets. In conclusion, implications are highlighted for scholars and practitioners.