How Do People Perceive MNCs? Development and Validation of a Multidimensional Attitudes towards MNCs Scale

Abstract

This research program investigates host nationals' attitudes towards multinational corporations (MNCs) and their antecedents and consequences. MNCs have rapidly expanded worldwide. As external agents, MNCs inevitably bring different cultures, values and styles of governance into host countries. Such differences can influence members of the general public' attitudes towards MNCs (ATM). These attitudes can have significant consequences for MNCs in host countries regarding talent attraction and retention, stakeholder relationships and consumer choices, ultimately leading to financial viability of MNCs.

However, there is little known about host nationals' ATM. Through three studies, this research program creates and validates a scale on individuals' ATM in host nations. I conduct this research in the context of China. China is one of the largest recipients of foreign direct investment (FDI), with MNC units from various countries. Hence, China serves as an excellent context to study ATM.

Study 1 is inductive (interviews, N = 55) and helps identify general and specific attitudes towards MNCs. This study's findings also help generate items for each scale component. Then, Study 2 validates the scale in three steps: 1/ item generation, item reduction and external content validation; 2/ psychometric properties; and 3/ nomological network validity assessment at seven multiple time points through survey research based on ten separate samples (N = 1404). Finally, Study 3 undertakes empirical research (i.e., multiple time points, two survey-based studies) with 691 participants to apply the ATM Scale developed in Study 2 to test the proposed models described in Study 1 (abductively developed based on the literature and the inductive study) in a recruitment context.

As a point of clarification, the present study comprehensively investigates host nationals' ATM as a whole, rather than individual MNCs, without considering heterogeneity of MNCs, such as the nature of FDI, country of origin or specific sector. When referring to 'host nationals', this research program does not distinguish them based on demographics, including educational background, residential location or the nature of their profession or work experience.

The three studies collectively contribute to the attitudes, international business and management theory literature. This research program makes three contributions to the attitudes literature by providing a tool to measure ATM. Then, the study contributes to organisational attraction as well as legitimacy of MNCs in the host location. Last, it introduces a new informal institution, ATM, contributing to signalling and institutional theory. The research program has practical implications for managers and practitioners. It helps understand ATM, which may in turn aid in comprehending corporate image, marketing strategy, MNC employee training programs and recruitment in the host context. Show more