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A master's thesis from Aalborg University
Book cover


How Institutional Contexts Shape Strategic Sustainability Decisions: A Comparative Study of BMW and Tata Motors

Term

4. Semester

Publication year

2025

Submitted on

Pages

60

Abstract

This thesis investigates how home- and host-country institutions influence multinational corporations' strategic sustainability. Using a case study of BMW (Germany) and Tata Motors (India), it analyzes global footprints, compares policy regimes and employs the Critical Incident Technique on secondary data (2020-2025). The findings demonstrate that BMW implements "standardize-high, adapt-smart" under dense EU laws, whereas Tata seeks contextual hybridization within India, and JLR in the UK spreads higher standards group-wide. In China and South Africa, both enterprises use hybridization to align with policy tools; international regulations (such as CSRD/CBAM) spread change via value chains. The study reconsiders institutional distance as the host-referenced decision factor and offers a quadrant-based decision-making tool for choosing standardization, adaptation, or hybridization.

This thesis investigates how home- and host-country institutions influence multinational corporations' strategic sustainability. Using a case study of BMW (Germany) and Tata Motors (India), it analyzes global footprints, compares policy regimes and employs the Critical Incident Technique on secondary data (2020-2025). The findings demonstrate that BMW implements "standardize-high, adapt-smart" under dense EU laws, whereas Tata seeks contextual hybridization within India, and JLR in the UK spreads higher standards group-wide. In China and South Africa, both enterprises use hybridization to align with policy tools; international regulations (such as CSRD/CBAM) spread change via value chains. The study reconsiders institutional distance as the host-referenced decision factor and offers a quadrant-based decision-making tool for choosing standardization, adaptation, or hybridization.