MNCs experience institutional duality when:
A) headquarters (HQ) pressures subsidiaries to adopt its desired practices while the subsidiary is pressurized by its host context to follow local practices
B) they are not sure which laws they should be following when they operate in more than one country
C) performance in the subsidiary lags that required by HQ
D) none of these

Question

Quizplus · Accepted Answer

Institutional duality refers to the tension MNCs face when they are simultaneously pressured by their headquarters to adopt certain practices while being pressured by their host context to follow local practices. This can create conflicts and challenges for MNCs in navigating how to operate effectively in different cultural and institutional environments. Option B refers to legal complexity, while option C refers to performance issues and are not directly related to institutional duality. Thus, the best answer is A.

MNCs Experience Institutional Duality When