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Institutional adjustment and change at the firm level: A varieties of capitalism perspective

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  • Kuznetsov, Andrei
  • Jacob, Marcus

Abstract

This paper contributes to a better understanding of global corporate and industrial change at the firm level. Our focus is on convergence vs. divergence of national institutional systems. Data are drawn from a survey of German and UK firms. Our results for adaptation behavior of British subsidiaries in Germany suggest that at the firm level the primacy of national institutions and institutional complementarity as determinants of the organizational behavior of MNEs may be overstated. Nonetheless, evidence that German MNEs in Britain seek to choose strategic choices for which there is institutional support in the host country suggests that complementarity is functional enough to incite adjustment even in the absence of strong formal pressure. The evidence that both German and British firms seem to prefer practices characteristic of liberal market economies may pose a problem for institutional stability in Germany and generates implications for the likely pathways of institutional change.

Suggested Citation

  • Kuznetsov, Andrei & Jacob, Marcus, 2015. "Institutional adjustment and change at the firm level: A varieties of capitalism perspective," Scandinavian Journal of Management, Elsevier, vol. 31(2), pages 165-177.
    • Handle: RePEc:eee:scaman:v:31:y:2015:i:2:p:165-177
    DOI: 10.1016/j.scaman.2014.09.005
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    2. Gölgeci, Ismail & Larimo, Jorma & Arslan, Ahmad, 2017. "Institutions and dynamic capabilities: Theoretical insights and research agenda for strategic entrepreneurship," Scandinavian Journal of Management, Elsevier, vol. 33(4), pages 243-252.
    3. Friel, Daniel & Pinot de Villechenon, Florence, 2018. "Adapting a Lean Production Program to National Institutions in Latin America: Danone in Argentina and Brazil," Journal of International Management, Elsevier, vol. 24(3), pages 284-299.

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    More about this item

    Keywords

    Global convergence; Complementarity; Institutional openness/restrictiveness; MNE–host country relations;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • F01 - International Economics - - General - - - Global Outlook
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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