Framework

Proximal versus mediated embedding

The question it answers

When a host government turns hostile, should a multinational's leadership engage local non-market stakeholders directly or through intermediaries, so it spots and answers the threat in time?

Origin
Moschieri, Ravasi and Huy, 2024
Diagram type
Comparison table
Level of analysis
Firm
Topics
Strategy & leadershipBusiness consulting
Chess knight on a glass compass, icon for strategy and leadership

Diagram

Proximal versus mediated embedding

CriterionProximal embeddingMediated embedding (mainly via local partners)
How the firm connectsDirectly with a broad set of non-market stakeholdersMainly through a local partner
FindingBetter information gathering and interpretation, easier to mobilise supportCan create a "liability of insidership" and slower alertness

Pitfalls

Pitfall

The finding rests on a sample of eight multinationals in disputes with Latin American governments, 2001–2012.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Moschieri, C., Ravasi, D. and Huy, Q. (2024) ‘Why do some multinational firms respond better than others to the hostility of host governments? Proximal embedding and the side effects of local partnerships’, Journal of Management Studies, 61(2), pp. 627–685.doi:10.1111/joms.12809Source page