International business-government relations: The risk management strategies of MNEs in emerging economies
- Publication Type:
- Journal Article
- Journal of World Business, 2020, 55 (1)
- Issue Date:
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© 2019 Elsevier Inc. In emerging economies where the institutional environment is weak, the level of risk faced by MNEs remains high. Extant literature recognizes the forms of risks faced by MNEs, but only a few studies have attempted to explain how firms identify and mitigate these risks. This study addressed the commercial risk management strategies of MNEs operating in Vietnam. We found that the government remained the key stakeholder and maintaining active relations with them aided MNEs’ operational success. The risk mitigation strategies employed by MNEs included managing alertness, portraying good behavior, navigating through the state of comfort, and active mediation.
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