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Transnational corporations shaping institutional change: the case of English law firms in Germany

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  • James R. Faulconbridge
  • Daniel Muzio

Abstract

Questions remain about the factors that influence the ability of transnational corporations (TNCs) to shape processes of institutional change. In particular, questions about power relations need more attention. To address such questions, this article develops a neo-institutional theory-inspired analysis of the case of English law firms and their impacts on institutional change in Germany. The article shows that the shaping of the direction of institutional change by English legal TNCs was a product of conjunctural moments in which local institutional instability combined with the presence, resources and strategies of the TNCs to redirect the path of institutional evolution. This draws attention to the need to go beyond the TNC and its resources and to consider the way a diverse array of local actors and their generating of instability in existing institutional structures influence the ability of TNCs to become involved in processes of institutional change in particular, conjunctural moments in time.

Suggested Citation

  • James R. Faulconbridge & Daniel Muzio, 2015. "Transnational corporations shaping institutional change: the case of English law firms in Germany," Journal of Economic Geography, Oxford University Press, vol. 15(6), pages 1195-1226.
    • Handle: RePEc:oup:jecgeo:v:15:y:2015:i:6:p:1195-1226.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbu038
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    Cited by:

    1. Johann Fortwengel, 2017. "Understanding When MNCs can Overcome Institutional Distance: A Research Agenda," Management International Review, Springer, vol. 57(6), pages 793-814, December.
    2. Robson, Keith & Ezzamel, Mahmoud, 2023. "The cultural fields of accounting practices: Institutionalization and accounting changes beyond the organization," Accounting, Organizations and Society, Elsevier, vol. 104(C).
    3. April L. Wright & Gemma Irving & Asma Zafar & Trish Reay, 2023. "The Role of Space and Place in Organizational and Institutional Change: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 60(4), pages 991-1026, June.
    4. Song, Ji-Won, 2021. "How MNE subsidiaries transfer HRM practices in distant environments: A tale of two IKEA subsidiaries," Journal of International Management, Elsevier, vol. 27(2).
    5. 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.
    6. Michiel Van Meeteren & David Bassens, 2016. "World Cities and the Uneven Geographies of Financialization: Unveiling Stratification and Hierarchy in the World City Archipelago," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(1), pages 62-81, January.
    7. Marieke Krijnen & David Bassens & Michiel van Meeteren, 2017. "Manning circuits of value: Lebanese professionals and expatriate world-city formation in Beirut," Environment and Planning A, , vol. 49(12), pages 2878-2896, December.
    8. Marcus M. Larsen & Ben Mkalama & Michael J. Mol, 2023. "Outsourcing in Africa: How do the interactions between providers, multinationals, and the state lead to the evolution of the BPO industry?," Journal of International Business Policy, Palgrave Macmillan, vol. 6(4), pages 432-452, December.

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