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The Color of Faults Depends on the Lens: MNCs’ LegitimacyRepair in Response to Framing by Local Governments in China

Published online by Cambridge University Press:  03 July 2019

Xiao-xiao Liu Open the ORCID record for Xiao-xiao Liu [Opens in a new window] ,
Lai Si Tsui-Auch ,
Jun Jie Yang ,
Xueli Wang ,
Aihua Chen  and
Kai Wang
Xiao-xiao Liu
Affiliation:
Xiamen University, China
Lai Si Tsui-Auch
Affiliation:
Nanyang Technological University, Singapore
Jun Jie Yang*
Affiliation:
Xiamen University, Malaysia
Xueli Wang
Affiliation:
Tsinghua University, China
Aihua Chen
Affiliation:
Chongqing University, China
Kai Wang
Affiliation:
Capital University of Economics and Business, China
*
Corresponding author: Jun Jie Yang (junjie.yang@xmu.edu.my)
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Abstract

Concerns over food safety in China not only direct public attention to negativeincidents, but also trigger the government's scrutiny of implicatedfirms, particularly MNCs. The question of how to repair legitimacy after mediacoverage of negative incidents has become a critical issue for MNCs. Althoughthe factors for MNCs’ public crises have been identified, how localcontexts and mechanisms shape repair approaches remain unclear. To address thisresearch gap, we conducted a study of Walmart China's approachesassociated with two negative incidents across two regions. We found that thenegative incidents can be framed differently depending on the localenvironment's unfavorability for MNCs. Specifically, the negativeframing gave rise to varying degrees of legitimacy loss and offered differentleeway for MNCs to repair their legitimacy. We also identified the variedoutcomes of different repair approaches. By revealing the linkages among localcontext, framing, legitimacy repair, and its outcomes, our study contributes toresearch on MNCs’ legitimacy management under institutionalcomplexity and underscores the China context for legitimacy maintenance. We alsooffer insights that advance the institutional approach to legitimacy repair inthis context. Last, we reflect on the techniques for conducting qualitativeresearch in China.

摘要

对中国食品安全的担忧不仅引发公众对负面事件的广泛关注，也激起政府对涉事公司特别是跨国公司的审查。媒体报道负面事件后，如何开展合法性修复已成为跨国公司面临的重要议题。已有研究考察了引发跨国公司公共危机的因素，但本土情境及其塑造合法性修复的机制有待挖掘。本研究分析了沃尔玛中国在两个不同地区的负面事件及其应对策略，发现当地对跨国公司的偏好影响了对负面事件的界定。具体而言，负面框定导致了不同程度上的合法性损失，并塑造了跨国公司在修复合法性过程中可回旋的余地。此外，不同合法性修复策略也会引发不同效果。通过揭示当地情境、框定、合法性修复及其效果之间的关系，本研究有助于理解在制度复杂性下跨国公司的合法性管理，彰显了中国情境下合法性维护的特色，提升了对合法性修复中制度路径的理解。最后，我们对在中国开展质性研究的策略进行了反思。

Аннотация

Тревогазабезопасностьпродуктовпитанияв Китаенетолькообращаетвниманиеобщественностинанегативныеинциденты,но ивызываетпристальноевниманиесостороныправительствапоотношениюквиновнымкомпаниям,особеннок МНК.Вопросо том,каквосстановитьлегитимностьпослеосвещенияв СМИнегативныхинцидентов,сталкритическиважнымдля МНК.Хотяпричиныобщественногокризисадля МНКизвестны,то,какимобразомместныеусловияимеханизмывлияютнапопыткивосстановлениярепутации,остаетсянеясным.Чтобыустранитьэтотпробелвнаучнойлитературе,мыисследовалиметодыработы Walmartв Китае,которыесвязаныс двумянегативнымиинцидентамив двухрегионах.Мыобнаружили,чтонегативныеинцидентымогутбытьпредставленыпо-разномувзависимостиотнеблагоприятныхместныхусловийдля МНК.Вчастности,негативноеобрамлениеприводилокразличнойстепенипотерилегитимностиипредполагалоразличныевозможностидля МНКвосстановитьсвоюлегитимность.Мытакжеопределилиразличныерезультатывзависимостиотразныхспособоввосстановлениялегитимности.Изучаявзаимосвязьмеждуместнымконтекстом,когнитивнымискажением,восстановлениемлегитимностии егорезультатами,нашаработавноситсвойвклад висследованияпоуправлениюлегитимностьюМНК вусловияхинституциональнойсложности,уделяяприэтомособоевниманиекитайскомуконтекстудляподдержаниялегитимности.Мытакжеделаемвыводы,которыеподдерживаютинституциональныйподходквосстановлениюлегитимностив этомконтексте.Наконец,мыразмышляемотактикепроведениякачественныхисследованийв Китае.

Resumen

Las preocupaciones sobre la inocuidad de los alimentos en China no solo dirigenla atención pública a los incidentes negativos, sino quetambién detona el escrutinio del gobierno de las empresas implicadas,en particular de las multinacionales. La pregunta de cómo reparar lalegitimidad después de la cobertura de incidentes negativos en losmedios se ha convertido en un tema crítico para las empresasmultinacionales. A pesar que se han identificado los factores de las crisispúblicas de las empresas multinacionales, cómo loscontextos y mecanismos locales dan forma a los enfoques de reparaciónaún no es claro. Para abordar esta brecha en lainvestigación, realizamos un estudio de los abordajes de WalmartChina asociados con dos incidentes negativos en dos regiones. Encontramos quelos incidentes negativos pueden encuadrarse de manera diferente dependiendo dela desfavorabilidad del entorno local para las empresas multinacionales.Específicamente, el encuadre negativo dio lugar a diversos grados depérdida de legitimidad y permitió un margen de maniobradiferente para que las empresas multinacionales repararan su legitimidad.Identificamos también que los resultados variados de diferentesabordajes de reparación. Revelando los vínculos entre elcontexto local, el marco, la reparación de la legitimidad y susresultados, nuestro estudio contribuye a la investigación sobre lagestión de la legitimidad de las empresas multinacionales en lacomplejidad institucional y subraya el contexto de China para el mantenimientode la legitimidad. También ofrecemos entendimientos que avanzan elenfoque institucional para la reparación de la legitimidad en estecontexto. Por último, reflexionamos sobre las tácticaspara realizar una investigación cualitativa en China.

Keywords

defianceframinginstitutional approachlegitimacy managementnegative incidents挑战框定制度路径合法性管理负面事件нарушениефреймингинституциональныйподходуправлениелегитимностьюнегативныеинцидентыdesafíoestructuraenfoque institucionalgestión de legitimidadincidentes negativos

Information

Type
Special Issue Articles
Information
Management and Organization Review , Volume 15 , Special Issue 2: Doing Qualitative Research in Emerging Markets , June 2019 , pp. 429 - 458
Copyright
Copyright © The International Association for Chinese Management Research 2019 

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Footnotes

Accepted by: Guest Editor Tian Wei

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