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The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets

Firms have the ability to be influenced by their institutions and in turn have to capability to influence them. This relationship can become deeply complicated and nuanced in emerging economies where the quality of institutions is low and is worsened when the country is experiencing extreme turbulen...

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Main Author: Butcher, Francis Hope
Other Authors: Luiz, John
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2024
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access_status_str Open Access
author Butcher, Francis Hope
author2 Luiz, John
author_browse Butcher, Francis Hope
Luiz, John
author_facet Luiz, John
Butcher, Francis Hope
author_sort Butcher, Francis Hope
collection Thesis
description Firms have the ability to be influenced by their institutions and in turn have to capability to influence them. This relationship can become deeply complicated and nuanced in emerging economies where the quality of institutions is low and is worsened when the country is experiencing extreme turbulence in the form of conflict. This dissertation intends to discuss how firms may be impacted by institutions in resource intensive host markets, as well as their effect on fragile conflict dynamic ecosystems that existed prior to their arrival. Mozambique is used as a case study. The northern province, where internationalisation of foreign oil firms has occurred, has been impacted by a violent insurgency, causing the firms to declare force majeure (FM). The study aims to theoretically add to conflict dynamics in international business literature, through demonstrating the overall impact of MNEs in fragile ecosystems. The development and quality of institutions is what creates an ecosystem within a country. Therefore, focus will also be placed on the role of institutions in global strategy, and specifically how they played a significant part in determining the impact of an MNEs impact on the conflict ecosystem within Mozambique. The study concludes that the relationships in the business ecosystem are put under strain due to the unique insurgency in Mozambique, resulting in a collapse of business operations. This research is an inductive, exploratory, qualitative study, using multiple case studies of extractive multinational enterprises (MNEs) that have been operational in the northern province of Mozambique, and have been so since the discovery of gas in the area. The findings presented in this study were based on thirteen interviews, with participants being from either the MNEs in the area, the government or experts on the matter. There are many areas in which this research can make a significant contribution: the main are conflict dynamics, internationalisation into emerging economies, institutions within global strategy
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:12.136Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2024
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spelling oai:open.uct.ac.za:11427/39741 The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets Butcher, Francis Hope Luiz, John International Management Firms have the ability to be influenced by their institutions and in turn have to capability to influence them. This relationship can become deeply complicated and nuanced in emerging economies where the quality of institutions is low and is worsened when the country is experiencing extreme turbulence in the form of conflict. This dissertation intends to discuss how firms may be impacted by institutions in resource intensive host markets, as well as their effect on fragile conflict dynamic ecosystems that existed prior to their arrival. Mozambique is used as a case study. The northern province, where internationalisation of foreign oil firms has occurred, has been impacted by a violent insurgency, causing the firms to declare force majeure (FM). The study aims to theoretically add to conflict dynamics in international business literature, through demonstrating the overall impact of MNEs in fragile ecosystems. The development and quality of institutions is what creates an ecosystem within a country. Therefore, focus will also be placed on the role of institutions in global strategy, and specifically how they played a significant part in determining the impact of an MNEs impact on the conflict ecosystem within Mozambique. The study concludes that the relationships in the business ecosystem are put under strain due to the unique insurgency in Mozambique, resulting in a collapse of business operations. This research is an inductive, exploratory, qualitative study, using multiple case studies of extractive multinational enterprises (MNEs) that have been operational in the northern province of Mozambique, and have been so since the discovery of gas in the area. The findings presented in this study were based on thirteen interviews, with participants being from either the MNEs in the area, the government or experts on the matter. There are many areas in which this research can make a significant contribution: the main are conflict dynamics, internationalisation into emerging economies, institutions within global strategy 2024-05-28T10:07:37Z 2024-05-28T10:07:37Z 2023 2024-05-28T10:01:28Z Thesis / Dissertation Masters Master of Management http://hdl.handle.net/11427/39741 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce
spellingShingle International Management
Butcher, Francis Hope
The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
thesis_degree_str Master's
title The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
title_full The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
title_fullStr The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
title_full_unstemmed The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
title_short The effect of institutional turbulence on multinational enterprises' strategies in resource-intensive host markets
title_sort effect of institutional turbulence on multinational enterprises strategies in resource intensive host markets
topic International Management
url http://hdl.handle.net/11427/39741
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AT butcherfrancishope effectofinstitutionalturbulenceonmultinationalenterprisesstrategiesinresourceintensivehostmarkets