Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy

Over recent years, there has been rising interest in the societal and political roles of multinational corporations (MNCs), increasingly engaging in issues previously reserved for govern-mental actors. Scholars have started analyzing the various interactions between corporations, foreign governments...

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Váldodahkki: Marschlich, Sarah
Materiálatiipa: Online
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Almmustuhtton: Springer Nature 2024
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author Marschlich, Sarah
author_browse Marschlich, Sarah
author_facet Marschlich, Sarah
author_sort Marschlich, Sarah
collection Directory of Open Access Books
description Over recent years, there has been rising interest in the societal and political roles of multinational corporations (MNCs), increasingly engaging in issues previously reserved for govern-mental actors. Scholars have started analyzing the various interactions between corporations, foreign governments, and communities, referring to corporate diplomacy as the societal engagement of MNCs in the host country environment. The core goal of corporate diplomacy is to gain organizational legitimacy in the host country society and, in this regard, be perceived as acting appropriately and being socially acceptable. By applying a neo-institutional public relations perspective on corporate diplomacy, I explore the legitimation process of European MNCs in the United Arab Emirates (UAE) on three levels. The three views applied in this thesis include the company aiming at communicating its corporate diplomacy efforts, the mass media covering news about corporate diplomacy and the corporation, and the general audience that receives and interprets the information about corporate diplomacy, ascribing legitimacy. Building on that, the purpose of my thesis is to (1) examine the extent to which and how corporate diplomacy is practiced and communicated to be perceived as legitimate, (2) investigate how the media coverage in the host country covers and frames the MNC and its corporate diplomacy efforts, and (3) analyze how corporate diplomacy news affects the organizational legitimacy perceptions of the host country community toward the foreign corporation. In this thesis, I applied a multi-method research design, including in-depth interviews with public relations executives in Abu Dhabi and Dubai (N = 25), a content analysis of the media coverage of corporate diplomacy in Emirati news outlets (N = 385), and an experimental design study surveying residents in the UAE (N = 199) to explore the legitimation process of MNCs through corporate diplomacy. The findings indicate that MNCs strategically use public relations and communication to identify and respond to the societal expectations of the most relevant groups in their host country environment, which can contribute to the MNCs’ legitimacy. Simultaneously, MNCs seek to address demands arising from the corporations’ head-quarters and home countries, leading to different corporate diplomacy modes that affect organizational legitimacy differently. The analysis of the local media coverage revealed two media frames that contribute to organizational legitimacy on both a moral level and a pragmatic level. The findings suggest that legitimacy judgments in the local media mainly depend on the demonstrated linkages between corporate diplomacy and the key actors in the host country and the outlined beneficiaries of corporate diplomacy. The findings of the experimental survey revealed that favorable assessments of organizational legitimacy most probably occur in the UAE when the MNCs engage with the local government, which is, in most cases, inevitable due to the particularities in the given country context. In this way, my results pointed particularly to the role of a country’s culture and its political system regarding corporate diplomacy, public relations, and the legitimation process. Analyzing corporate diplomacy from a communicative and relationship-oriented perspective on the corporations, the media, and the general audience, this thesis provides substantial insights into how MNCs can take an active role in gaining legitimacy while shedding light on how legitimacy is co-constructed by the media and its audiences. This central research gap has not been analyzed before, thus this study contributes significantly to international public relations research and practice.
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spelling doab-20.500.12854ir-1396992024-07-09T04:01:46Z Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy Marschlich, Sarah Open Access Corporate Diplomacy Public Relations Organizational Legitimacy thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJS Sales and marketing::KJSP Public relations Over recent years, there has been rising interest in the societal and political roles of multinational corporations (MNCs), increasingly engaging in issues previously reserved for govern-mental actors. Scholars have started analyzing the various interactions between corporations, foreign governments, and communities, referring to corporate diplomacy as the societal engagement of MNCs in the host country environment. The core goal of corporate diplomacy is to gain organizational legitimacy in the host country society and, in this regard, be perceived as acting appropriately and being socially acceptable. By applying a neo-institutional public relations perspective on corporate diplomacy, I explore the legitimation process of European MNCs in the United Arab Emirates (UAE) on three levels. The three views applied in this thesis include the company aiming at communicating its corporate diplomacy efforts, the mass media covering news about corporate diplomacy and the corporation, and the general audience that receives and interprets the information about corporate diplomacy, ascribing legitimacy. Building on that, the purpose of my thesis is to (1) examine the extent to which and how corporate diplomacy is practiced and communicated to be perceived as legitimate, (2) investigate how the media coverage in the host country covers and frames the MNC and its corporate diplomacy efforts, and (3) analyze how corporate diplomacy news affects the organizational legitimacy perceptions of the host country community toward the foreign corporation. In this thesis, I applied a multi-method research design, including in-depth interviews with public relations executives in Abu Dhabi and Dubai (N = 25), a content analysis of the media coverage of corporate diplomacy in Emirati news outlets (N = 385), and an experimental design study surveying residents in the UAE (N = 199) to explore the legitimation process of MNCs through corporate diplomacy. The findings indicate that MNCs strategically use public relations and communication to identify and respond to the societal expectations of the most relevant groups in their host country environment, which can contribute to the MNCs’ legitimacy. Simultaneously, MNCs seek to address demands arising from the corporations’ head-quarters and home countries, leading to different corporate diplomacy modes that affect organizational legitimacy differently. The analysis of the local media coverage revealed two media frames that contribute to organizational legitimacy on both a moral level and a pragmatic level. The findings suggest that legitimacy judgments in the local media mainly depend on the demonstrated linkages between corporate diplomacy and the key actors in the host country and the outlined beneficiaries of corporate diplomacy. The findings of the experimental survey revealed that favorable assessments of organizational legitimacy most probably occur in the UAE when the MNCs engage with the local government, which is, in most cases, inevitable due to the particularities in the given country context. In this way, my results pointed particularly to the role of a country’s culture and its political system regarding corporate diplomacy, public relations, and the legitimation process. Analyzing corporate diplomacy from a communicative and relationship-oriented perspective on the corporations, the media, and the general audience, this thesis provides substantial insights into how MNCs can take an active role in gaining legitimacy while shedding light on how legitimacy is co-constructed by the media and its audiences. This central research gap has not been analyzed before, thus this study contributes significantly to international public relations research and practice. 2024-07-09T04:01:45Z 2024-07-09T04:01:45Z 2024-07-08T16:24:38Z 2022 book ONIX_20240708_9783658368173_230 https://library.oapen.org/handle/20.500.12657/91893 9783658368173 https://directory.doabooks.org/handle/20.500.12854/139699 eng open access image/jpeg Attribution 4.0 International https://library.oapen.org/bitstream/20.500.12657/91893/1/207281.pdf Springer Nature 9fa3421d-f917-4153-b9ab-fc337c396b5a c9fff097-a6b0-4c97-afcd-d033f5f27a3d 07f61e34-5b96-49f0-9860-c87dd8228f26 9783658368173 Swiss National Science Foundation (SNF) Heidelberg 10BP12_207281 Open Access Books Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung Swiss National Science Foundation 10.13039/501100001711 open access
spellingShingle Open Access
Corporate Diplomacy
Public Relations
Organizational Legitimacy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJS Sales and marketing::KJSP Public relations
Marschlich, Sarah
Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title_full Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title_fullStr Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title_full_unstemmed Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title_short Corporate Diplomacy: How Multinational Corporations Gain Organizational Legitimacy
title_sort corporate diplomacy how multinational corporations gain organizational legitimacy
topic Open Access
Corporate Diplomacy
Public Relations
Organizational Legitimacy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJS Sales and marketing::KJSP Public relations
topic_facet Open Access
Corporate Diplomacy
Public Relations
Organizational Legitimacy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJS Sales and marketing::KJSP Public relations
url ONIX_20240708_9783658368173_230
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