As a part of multinational corporations (MNCs), subsidiaries operate in distinct host countries and have to deal with their external context. Host country political embeddedness, in particular, helps subsidiaries to obtain knowledge and understanding of the regulatory and political context, and to get access to local networks. Moreover, they get some guidance and support from their headquarters. Distance between MNC home and host countries, however, alienates subsidiaries from the MNC and influences the extent of subsidiary host country political embeddedness. We suggest that the host country political and regulatory context moderates the effect of distance on subsidiary host country political embeddedness by reducing the need and/or value of headquarters support. Using a sample of 124 European manufacturing subsidiaries, we find that distance (space) and context (place) matter jointly: the impact of distance is stronger for subsidiaries that operate in host countries with low governance quality and low political stability in place.

Vale, a Brazilian-based, multinational mining company is used as a case study to investigate the impact of institutions on company strategy in dynamic markets. The research focuses on Vale’s exploration and development of the coal deposits of Mozambique, a country in which the institutional environment was decimated by war between 1964 and 1992.The objective of the research is to investigate how using the theory of institutions, as articulated in international business and corporate strategy literature, could be useful in understanding how firms make strategic choices and seek to gain competitive advantage in dynamic markets. In addition, the research provides a case study based in an African market, which will add to the material available for teaching general management principles in dynamic markets.The research demonstrates the importance of the link between Brazil’s foreign policy between 2000 and 2010, and Vale’s expansion strategies in Africa at that time. It highlights the institutional deficiencies in Mozambique at the time of Vale’s entrance, such as the limited rail infrastructure and weakly developed mineral rights legislation; and shows how Vale has been able to turn these deficiencies into competitive advantage, and has developed a dominant position in an internationally significant coalfield.In this way, the research supports the “institutional-view” of strategy, as articulated by Peng, Wang and Jiang (2008) and positions the role of institutions as being at least as important as industry and company resource factors in determining company strategy in dynamic markets.The challenge presented to readers of the case is to describe the institutional landscape in Mozambique and assess Vale’s response to it, using Khanna, Palepu and Sinha’s (2005) framework; to assess the merit of Peng et al.’s (2008) “strategy-tripod” when considering dynamic market strategy; and to consider the economic, political and social context facing Vale in trying to maintain and grow their competitive position. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

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Made available in DSpace on 2016-06-02T19:14:56Z (GMT). No. of bitstreams: 1 4245.pdf: 409901 bytes, checksum: 2a67c585b5980678ab40b6420c934a71 (MD5) Previous issue date: 2011-02-23 / Universidade Federal de Minas Gerais / This research examines the ability to normative creation of the International Labour Organization (ILO). Previous surveys had indicated that the ILO had participation in public debate on labour issues in Brazil. Objectives: To evaluate the importance of the ILO in standardization of labour issues. Method: The research relies on the available documentation (NATLEX and ILOLEX) and the national and international literature about ILO. Results: The research showed two Features: 1) The ILO project has changed very little due to its institutional design that gives the organization the flexibility to act in different contexts of different times. 2) The ILO has a capacity required to guide decisions of actors and even set new agendas in Brazil. / Essa pesquisa analisa a capacidade de criação normativa da Organização Internacional do Trabalho (OIT). Levantamentos prévios indicam que há participação da OIT no debate público sobre questões laborais no Brasil. Objetivos: Avaliar a evolução estrutural da OIT e sua importância na normatização de questões trabalhistas brasileiras. Método: A pesquisa assenta-se na documentação disponível (NATLEX e ILOLEX) e na literatura nacional e internacional sobre a OIT. Resultados: A pesquisa aponta duas características: 1) O projeto da OIT pouco se alterou devido a seu desenho institucional que confere a organização flexibilidade para atuar em diferentes contextos de diferentes épocas; 2) A OIT possui capacidade de pautar decisões de atores e de influenciar a criação de novas agendas no Brasil.