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 literature on
institutional complexity as well as co-evolutionary perspective. 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.