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Determinants of Political Strategies in U.S. Multinationals

Amy J. Hillman

Arizona State University amy.hillman{at}asu.edu

This study focuses on the determinants of political strategies used by U.S. multinationals (MNCs) in Europe. Empirical support is found for Hillman and Hitt’s taxonomy of political decisions—that is, approach, participation level, and strategy. The role of institutional- versus firm-level variable determinants of these choices is explored as are the relative effects of firm versus industry variables within differing political contexts. Results based on a survey sample of 169 U.S. MNC subsidiaries within 14 European countries support the finding that both institutional- and firm-level variables are important determinants of political strategy approach, participation level, and strategy.

Key Words: corporate political strategies • multinational strategies • political strategy taxonomy • political strategy determinants • businessgovernment relations

Business & Society, Vol. 42, No. 4, 455-484 (2003)
DOI: 10.1177/0007650303260351
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