The role of non-market strategies in establishing legitimacy: The Case of Service MNEs in emerging economies

In this article, we examine the mechanisms of corporate political activity of service multinational enterprises (SMNEs) operating in an emerging economy. Reporting the findings of qualitative interviews with key decision-makers in Ukraine, the article illuminates how SMNEs operating in turbulent institutional contexts can enact various corporate political strategies, which include social responsibility activities to mitigate the market costs and develop legitimacy. The findings elucidate how government agencies and institutions may also invoke corporate social responsibility (CSR) as a strategy. The article makes key contributions, firstly, it underscores the complementary dynamics between CPA and CSR strategies in host markets characterised by weak and incomplete institutions. Secondly, the article contributes to the relatively underexplored nature of service sector MNEs operating in such institutional contexts.