Multinational Enterprises as Bridging Institutional Actors Toward Sustainability

Abstract

The way through which multinational enterprises (MNEs) internationalize across countries and interact with institutions and societies shapes their economic, social, and political role. Extant literature has entrusted MNEs with these roles through which they are capable of affecting country contexts, their institutions, and societies and prompt a change toward sustainability. Nonetheless, a clear picture of such roles, and their interplay, remains a challenge for the interpretation of how MNEs deal with sustainability goals. By conducting a qualitative examination of the IKEA case, this chapter aims to develop knowledge about and show how MNEs define sustainability goals at both global and local levels. We argue that MNEs act as bridging institutional actors when they effectively manage the interplay of economic, social, and political roles. This study contributes to international business research by illustrating how MNEs take advantage of their presence across different countries to promote sustainable development and offering a clear picture of the multiple roles that MNEs play toward sustainability. Furthermore, it connects international business research and social issues in management studies by conceptualizing the role of MNEs as bridging institutional actors in the sustainability field.