Speaker: Dr João Albino-Pimentel (Darla Moore School of Business, University of South Carolina)
Hosted by: University of Liverpool Management School's Strategy, International Business and Entrepreneurship Group
Open to: SIBE Group staff and students, with no sign up needed
Date: Wednesday 31 January 2024
Time: 1:30-3pm
In person: Rendall Building - Lecture Theatre 5
Abstract
This paper introduces ‘concealed distancing' as a unique approach used by multinational enterprises (MNEs) to obscure the identity of their local units in host nations exhibiting geopolitical animosity towards their country of origin.
We delve into how country-of-origin can be conceptualized as an MNE trait and explore how geopolitical hostilities generate a 'liability of origin,' leading to legitimacy challenges for MNE subsidiaries from the targeted nation. To mitigate these challenges, MNEs obscure their local units' identities by complicating the ownership structure that connects them to their home country headquarters.
These MNEs are thus willing to accept implementation costs and risks associated with such concealment, including potential exposure and resultant backlash costs. We further examine how MNE behaviors alter the balance between the advantages and disadvantages of concealed distancing.
We argue that MNEs' political engagement amplifies the benefits of this strategy by aiding in legitimacy acquisition from policymakers and reducing backlash costs. Conversely, the public exposure of MNE wrongdoing exacerbates backlash costs due to continuous scrutiny from societal actors.
Empirical support for these predictions is derived from our analysis of 12,280 U.S. subsidiaries of 2,523 international MNEs from 2013 to 2020.
Speaker
João Albino-Pimentel is an assistant professor of international business and Dean's Fellow at the Darla Moore School of Business, University of South Carolina. João’s research interests lie at the intersection of non-market and global strategy.
His work aims to shed light on how non-market resources and capabilities influence firms' global strategy decisions and performance. Passionate about research that advances the understanding of multinational companies' role in addressing pressing global challenges, João is particularly interested in studying how firms' strategies and activities can effectively contribute to tackling issues such as climate change, violent conflict, infrastructure development and economic inequality.
His work has been published in several journals, such as the Journal of International Business Studies, Strategic Management Journal, Research Policy and Global Strategy Journal and serves on the editorial review boards of prominent journals such as the Journal of International Business Studies, Strategic Management Journal, Journal of International Business Policy, Business & Society and Multinational Business Review.
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