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Nowadays, companies abandon their traditional rent-gaining strategies. They pursue triple bottom-line results by implementing economic, environmental and social sustainability strategies. This paper aims to link the main sustainability strategies of multinational enterprises (MNEs) in emerging and developing markets (EDMs) to the strategic, industrial, market and institutional antecedents of sustainability development.

Positivism and a deductive research approach are used to test propositions through a multiple case study strategy, to identify the sustainability strategies of five MNEs belonging in five different industries, and the antecedents of these strategies.

Strategic leadership and strategic behavior/orientation are among the most important antecedents of sustainability strategies development in EDMs. The sustainability strategies are partially industry specific. However, all companies had undertaken activities that go beyond the mitigation of their negative impact, acting as regulators of the EDMs.

Previous literature has explained sustainability as an attempt of the MNEs to cover institutional voids and the absence/failings of the state. This paper contributes to the exploration of sustainability strategies of MNEs in EDMs, by identifying the strategic and market influences driving sustainability and by linking this strategic behavior to industrial and institutional idiosyncrasies.

To illustrate how threats of institutional duality (ID) incidence subsidiaries confront are converted to opportunities, by conceptualizing how subsidiaries attain operational legitimacy at both their headquarters (HQs) and host countries.

Using a systematic literature review, the authors build on institutional theories by analyzing the ID literature along its structure, main processes and outcomes. The authors configure frameworks of both HQ control systems and host countries' institutional threats, showing how subsidiaries contingently navigate across them using configuration, differentiation and avoidance strategies.

The authors’ findings show that “foresighted” subsidiaries attain operational legitimacy through configuration, differentiation and avoidance of threats incidental to ID, by strategizing along certain formal and informal institutional variables including legal, sociocultural and technical factors.

The authors propose “structural configuration of ID incidence” and “subsidiary path to legitimacy” frameworks. The former configures how the interaction between HQ and host countries' variables constitute ID incidence threats. The latter highlights how “foresighted” subsidiaries use configuration, differentiation and avoidance strategies to attain operational legitimacy.

This paper aims to explore subsidiaries’ behavioural responses to volatile institutional pressures in the local context of the emerging Nigerian market.

The authors built on institutional and contingency theory to analyse previous literature on developed markets and apply it to African contexts. The authors used a context-specific volatile local context model to show how porous formal and strong informal institutions constitute international business (IB) as a contested terrain in the host country. The authors also used a qualitative methodology, involving multiple actors, to investigate this phenomenon in practice.

The findings indicated different types of institutional pressures shaping volatile local contexts, which together or separately impact subsidiaries, depending on their degree of exposure. Subsidiaries behaviourally respond to cope with these pressures through inclusive negotiations involving their home and host countries’ networks.

Previous research has imposed developed markets’ norms on emerging African markets, regardless of their volatility. As subsidiaries’ responses to local contexts in emerging African markets are poorly understood, the authors developed a volatile local context model, showing how IB becomes a contested terrain in host countries and the authors proposed a model that differentiates between informal institutions. The authors highlighted the impact of contextual pressures on subsidiaries, according to their levels of exposure to the local context. The authors concluded that committed alignment with a local context is necessary for presenting an effective contingent response to its volatilities.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

MNEs are grappling with the growing and permanent shift toward sustainable business practices. In EDMs, MNEs face increased challenges, but are able to form markets in the image they want, influencing business practices for the long-term.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.