Legitimacy, Interest Group Pressures and Change in Emergent Institutions: The Case of Foreign Investors and Host Country Governments

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Legitimacy, Interest Group Pressures and Change in Emergent Institutions: The Case of Foreign Investors and Host Country Governments

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Witold J. Henisz ()
Bennet A. Zelner ()

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Witold Jerzy Henisz

Abstract

We offer a simple model of policymaking emphasizing socialization and limits on human cognition to explicate mechanisms of change in emergent (as opposed to established) institutions. Emergent institutions are more susceptible to change, and their opponents may use frames or existing reference points to illustrate inconsistency with prevailing notions of legitimacy. Broader institutional structures and specific organizational characteristics moderate pressure for change. This perspective has novel implications for strategy and policy design.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2003-589.

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Length: 49 pages
Date of creation: 15 May 2003
Date of revision:
Handle: RePEc:wdi:papers:2003-589

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This paper has been announced in the following NEP Reports:

NEP-ALL-2003-11-23 (All new papers)

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Thomas C. Lawton & Steven M. McGuire, 2005. "Adjusting to Liberalization: Tracing the Impact of the WTO on the European Textiles and Chemicals Industries," Business and Politics, Berkeley Electronic Press, vol. 7(2). [Downloadable!]
Witold J. Henisz & Bennet A. Zelner, 2004. "Interest Groups, Veto Points And Electricity Infrastructure Deployment," William Davidson Institute Working Papers Series 2004-711, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Other versions:
- Henisz, Witold J. & Zelner, Bennet A., 2006. "Interest Groups, Veto Points, and Electricity Infrastructure Deployment," International Organization, Cambridge University Press, vol. 60(01), pages 263-286, January. [Downloadable!]
Gerald A. McDermott, 2004. "The Politics of Institutional Learning and Creation: Bank Crises and Supervision in East Central Europe," William Davidson Institute Working Papers Series wp726, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Dean Tjosvold & Ann Peng & Yi Chen & Fang Su, 2008. "Business and government interdependence in China: Cooperative goals to develop industries and the marketplace," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 225-249, June. [Downloadable!] (restricted)
Witold Henisz, 2004. "The Political Economy of Trans-Pacific Business Linkages," Business and Politics, Berkeley Electronic Press, vol. 6(1). [Downloadable!]

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