Table 2.

Relevant conceptual properties of supranational institutions

Property	Description	Consequence	Implications for MNCs
Supraterritoriality	Unlike national institutions, supranational institutions span national borders	Supranational institutions may be enforced in multiple, even extraterritorial countries (jurisdictions)	MNCs need to strategically account for supranational rules and norms between and beyond nation-states
Coexistence	Supranational institutions exist alongside national institutions but on a higher level	Supranational institutions directly affect national institutions or moderate distances between national institutional environments	MNCs have to be aware that supranational institutions alter, complement or substitute the effects of national institutions
Contextuality	Supranational institutions’ two-tiered effect on MNCs often depends on national institutions (e.g., imperfect enforcement, national shielding, insufficient capabilities)	The effect of supranational institutions may vary from one home country to the other	MNCs require analysis of how deeply supranational institutions target countries, as well as competition on economic and political markets on a macro level
Selectivity	Supranational institutions sometimes affect MNCs selectively (e.g., eligibility, voluntary adoption)	The direct effect of supranational institutions may vary within countries from one MNC to another	MNCs require analysis of how intensely supranational institutions affect themselves, their competitors, suppliers, and customers on a micro level
Consensuality	Lacking supranational enforcement, supranational institutions require consent either on the level of contracting parties or on a higher level that can enforce institutions vis-à-vis MNCs	Supranational institutions can be agreed on ad hoc by transacting parties or be enforced on them	MNCs need to consider how supranational institutions are enforced in a specific transaction context. MNCs can influence the consensus regarding enforcement on different levels (transaction, national, supranational) but with different means
Co-evolution	Supranational institutions co-evolve with national institutions and MNCs	MNCs are tributaries, advocates, and architects (“entrepreneurs”) of supranational institutions	MNCs can actively engage in developing supranational institutions (in alignment with strategic considerations), shaping supranational institutions to match MNC strategy