Effects of Political and Business Ties on Developing Marketing Dynamic Capabilities in Emerging Economies: The Evidence from Russia

Abstract

Since the effects of the institutional environment and its non-market factors have not been thoroughly explored within the relatively new domain of marketing dynamic capabilities (MDCs), this paper advances our understanding of the phenomenon by assessing whether political and business ties of MNEs may serve as the driving forces behind the development of MDCs. The findings demonstrate that managerial ties have a major impact on development of MDCs within an MNE’s subsidiary in emerging markets. In essence, this paper argues for an institutionally contextualized “Dynamic Capabilities” approach by proposing that ties may compensate for institutional voids in emerging economies.