When social movements close institutional voids: triggers, processes, and consequences for multinational enterprises  

Lutz Preuss*, Diego Alfonso Vazquez-Brust, Natalia Yakovleva, Hamid Foroughi, Diana Mutti

*Corresponding author for this work

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    Abstract

    Our research builds on existing literature examining institutional voids in emerging economies. Using data from two cases of mining FDI in Argentina, we conceptualize the triggers, processes and consequences of informal institution-building by a social movement. We found the cases to exhibit different ‘community sustainability orientations’, enabling two contrasting strategies, ‘bargaining’ and ‘gatekeeping’, to address the existing institutional void. This led to the development of new formal institutions – regulated CSR for the former and legal ban on mining operations for the latter case. Our study thus offers insights into the processes through which institutional entrepreneurship by social movements influences MNEs.
    Original languageEnglish
    Article number101283
    Number of pages18
    JournalJournal of World Business
    Volume57
    Issue number1
    Early online date16 Nov 2021
    DOIs
    Publication statusPublished - 1 Jan 2022

    Keywords

    • informal institutions
    • institutional voids
    • mining industry
    • social movements
    • Agentina

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