The
purpose of the study is to develop our understanding on the interplay between
MNEs and informal institutions on firm - industry level. The interplay here
refers to how responses to institutions develop in a particular context and how
this development is interrelated to stakeholders’ reactions and activities. To
study this interplay between MNE and informal institutions, we draw on studies
by Regnér and Edman (2014), Bitektine (2008), and institutional complexity
literature. We present two case vignettes on MNEs’ post entry strategies and
behaviors in their new host markets. With the help of these two case examples,
we aim to gain new insight on how and under what conditions informal
institutions of the host market may push MNEs to alter their initial strategies
and behaviors on the market; and on the other hand, on how and under what
conditions MNEs’ strategies and behaviors may catalyst change in the host
market informal institutions.