A foreign hotel in London: the history of Hilton's negotiation of legitimacy in the 'swinging sixties'

Abstract

Whilst theories of business internationalisation assert that foreignness poses challenges to multinational companies’ subsidiaries operating abroad, historical study of Hilton International’s expansion in the 1960s suggests otherwise. In its early internationalisation Hilton International transferred abroad its institutional ownership advantages including corporate philosophy and culture; its practices, policies, processes and work systems and product design. Despite claims of social embeddedness, the London Hilton was perceived to be a typically American hotel. Analysis of Hilton’s expansion strategy suggests that the company used its foreignness as a differentiating factor. This paper contributes to the limited business history research in the area of internationalisation and knowledge transference. Historical analysis of Hilton’s internationalisation contradicts the institutionalism’s assumption that multinationals must adapt to local institutional settings. This paper enhances the notion that playing the ‘foreignness’ game can lead to comparative global advantage.