• Reversing Mainland China’s National Institutional Spiral: A Single Case Study

Abstract

The economic revolution of the Mainland China after 1987 considerably influences the global economies and trades. Although many companies have formed in China for years, they cannot still avoid the threats of uncertainties from the China’s institutional environment. This study proposes a conceptual framework of dynamic institution of the Mainland China’s national institutional spiral to explain how most foreign companies were drawn into the spiral with high institutional embeddedness that restricts their growths. This study further draws on a unique case of AU Corporation to demonstrate how this company develops its institutional logic and plans institutional strategy to successfully reverse the spiral to establish its growth foundation in China. Finally, this paper extends understanding of institutional theory and provides practical suggestions for firms in China.

Keywords: National institutional spiral, Institutional embeddedness, Institutional logic,

Institutional strategy, China