ABSTRACT

This chapter conceptualizes systematic facilitative activity as institutional work, that is, 'the purposive action of individuals and organizations aimed at creating, maintaining and disrupting institutions'. It presents three facets of institutional work appear relevant to facilitating MNE-NV collaboration: architecting, brokering, and coaching. The principle of homophily suggests that MNEs and NVs are unlikely allies; that is, MNE-NV ties are less likely to be forged compared to MNE-MNE or NV-NV ties. The sheer asymmetry between MNEs and NVs in size, organisational structure, and power could be an impediment to relationship-building between these sets of firms. Prashantham and McNaughton argue that 'without high levels of visibility, efficiency and intimacy in local networks, NVs struggle to engage with larger actors, including MNE subsidiaries'. NVs tend to possess less transactional efficiency which could somewhat loosen the vice-like control often exerted by MNEs in interfirm networks. The emergent institutional work perspective examines how actors agentically create, maintain, and disrupt institutions through 'intelligent, situated institutional actions'.