Institutional Voids and Non-market Strategies in Large-scale Energy Projects in Developing Countries: A Case Study of the Bangladesh Power Sector

Abstract

Under the Belt and Road Initiative (BRI), Chinese enterprises have significantly expanded their involvement in energy infrastructure
development across South Asia. In countries such as Bangladesh, however, the implementation of large-scale energy projects is shaped less by
market efficiency alone than by persistent institutional constraints, including regulatory ambiguity, weak enforcement mechanisms, and limited intermediary capacity.
??Drawing on a qualitative case study of a large-scale coal-fired power project in southern Bangladesh, this paper examines how multinational enterprises respond to such institutional voids through non-market strategies rather than conventional market-based competition. Based
on participant observation and analysis of internal project documentation, the study explores how Corporate Political Activity (CPA) and
Corporate Social Responsibility (CSR) were deployed at different stages of project development to manage regulatory delays, land-related
disputes, and environmental legitimacy challenges.
??The findings suggest that in high-risk institutional environments, senior executives are frequently required to assume roles that extend
beyond operational management, engaging directly with regulatory institutions and local communities to stabilize project conditions. By linking institutional theory with project-level governance practices, this study contributes to the literature on non-market strategy and international
business by offering empirically grounded insights from large-scale energy investments in developing countries.