Entrepreneurial Responses to Extreme Institutional Barriers: a Case Study of One MNE in the Palestinian Mobile Phone Sector

Controversy exists over the relationship between firms and institutions. Classical institutional theory has emphasised path-dependency, viewing firms as largely passive to institutional barriers and voids. Otherwise, neo-institutionalism has acknowledged a possible two-way interplay between firms and institutions. Using the single case study of a multinational enterprise (MNE) in the Palestinian mobile phone sector context, this study investigates whether MNE corporate entrepreneurs can cope with extreme institutional barriers and voids, and perhaps even thrive on them. A thematic analysis of one MNE case study with 11 semi-structured interviews allows us to claim a contribution to the neo-institutional and entrepreneurship literatures. This MNE operates in arguably the most extreme and obstructive business environment, including many institutional barriers and voids. In this extreme environment it is no surprise that our analysis finds some evidence of the negative impact of such barriers and voids. Nevertheless, the company also employs three strategic types of responses – accept, adapt, and influence - to deal with them.