Concerns over food safety in China not only direct public attention to negative
incidents, but also trigger the government's scrutiny of implicated
firms, particularly MNCs. The question of how to repair legitimacy after media
coverage of negative incidents has become a critical issue for MNCs. Although
the factors for MNCs’ public crises have been identified, how local
contexts and mechanisms shape repair approaches remain unclear. To address this
research gap, we conducted a study of Walmart China's approaches
associated with two negative incidents across two regions. We found that the
negative incidents can be framed differently depending on the local
environment's unfavorability for MNCs. Specifically, the negative
framing gave rise to varying degrees of legitimacy loss and offered different
leeway for MNCs to repair their legitimacy. We also identified the varied
outcomes of different repair approaches. By revealing the linkages among local
context, framing, legitimacy repair, and its outcomes, our study contributes to
research on MNCs’ legitimacy management under institutional
complexity and underscores the China context for legitimacy maintenance. We also
offer insights that advance the institutional approach to legitimacy repair in
this context. Last, we reflect on the techniques for conducting qualitative
research in China.