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The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations

Author

Listed:
  • Tatiana Kostova

    (University of South Carolina [Columbia])

  • Sjoerd Beugelsdijk

    (University of Groningen [Groningen])

  • W. Richard Scott

    (Stanford University)

  • Vincent E. Kunst

    (University of Liverpool)

  • Chei Hwee Chua

    (University of South Carolina [Columbia])

  • Marc van Essen

    (University of South Carolina [Columbia])

Abstract

This paper presents a review and critique of the 20-year-old literature on institutional distance, which has greatly proliferated. We start with a discussion of the three institutional perspectives that have served as a theoretical foundation for this construct: organizational institutionalism, institutional economics, and comparative institutionalism. We use this as an organizing framework to describe the different ways in which institutional distance has been conceptualized and measured, and to analyze the most common organizational outcomes that have been linked to institutional distance, as well as the proposed explanatory mechanisms of those effects. We substantiate our qualitative review with a meta-analysis, which synthesizes the main findings in this area of research. Building on our review and previous critical work, we note key ambiguities in the institutional distance literature related to underlying theoretical perspectives and associated mechanisms, distance versus profile effects, and measurement. We conclude with actionable recommendations for improving institutional distance research.

Suggested Citation

  • Tatiana Kostova & Sjoerd Beugelsdijk & W. Richard Scott & Vincent E. Kunst & Chei Hwee Chua & Marc van Essen, 2020. "The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations," Post-Print hal-05656785, HAL.
    • Handle: RePEc:hal:journl:hal-05656785
    DOI: 10.1057/s41267-019-00294-w
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    Cited by:

    1. Li, Jingrui & Xie, Weihong & Wang, Jianzhou & Gao, Jialu & Zhang, Linyue & Wang, Jiyang & Li, Shoujiang, 2026. "Forecasting tourism recovery with multifactor insights – A case of post-pandemic Chinese outbound tourism," Annals of Tourism Research, Elsevier, vol. 116(C).
    2. Hsiao, Yi-Chi & Yeh, Chun-Ping & Lin, Shih-Min, 2026. "The impact of host country economic policy uncertainty on the performance of overseas subsidiaries - Evidence of Taiwanese MNEs in China," Journal of International Management, Elsevier, vol. 32(2).

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