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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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    Citations

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    Cited by:

    1. Chang Liu & Pengxiang Zhang & Stephanie Lu Wang, 2026. "Upward convergence: digital regulations and digital firms’ internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 57(6), pages 855-871, August.
    2. 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).
    3. Ye, Yu Wei & Sui, Sui & Singh, Vik, 2026. "Between two shores: Export strategy and financial performance of 1.5-generation immigrant entrepreneurs," Journal of Business Venturing Insights, Elsevier, vol. 25(C).
    4. Irene Margaret & Ernst Verwaal & Frederiek Schoubben, 2026. "Financial slack and corporate social performance of Asian multinational corporations: An institutional difference hypothesis perspective," Asia Pacific Journal of Management, Springer, vol. 43(1), pages 349-394, March.
    5. Wang, Qian & Zhao, Liming & Wang, Bill & Luo, Jianli & Jiang, Yan, 2026. "Digital Transformation of Firms and ESG Rating Divergence: An International Context," Research in International Business and Finance, Elsevier, vol. 88(C).
    6. Zhao, Yue & Parente, Ronaldo & Xu, Le & Gambirage, Cinara, 2026. "Institutional investors and MNE establishment mode choice," Journal of Business Research, Elsevier, vol. 208(C).
    7. Gilbert Kofi Adarkwah & Christopher Albert Sabel & Flladina Zilja, 2026. "Measuring geopolitics: the promise and limits of UNGA voting data for IB research," Journal of International Business Policy, Palgrave Macmillan, vol. 9(1), pages 102-123, March.
    8. Li, Liang Arthur & Ng, Eddy & Goerzen, Anthony & Chrysostome, Elie, 2026. "CEO aging and the MNE internationalization portfolio," Journal of World Business, Elsevier, vol. 61(4).
    9. Lee, Jong Min & Kwak, Jooyoung & Zhang, Xinyue, 2026. "Democratic distance in cross-border M&A: How political system alignment shapes ownership strategy," Journal of Business Research, Elsevier, vol. 213(C).
    10. Pittz, Thomas G. & Claw, Carma M. & Adler, Terry R., 2026. "Sovereignty as a site of innovation: Institutional entrepreneurship in Native American tribal nations," Research Policy, Elsevier, vol. 55(4).
    11. Hossain, Md Tareq Bin & Naoumova, Irina & Nardi, Nazly Katherine & Liou, Ru-Shiun, 2026. "From the US–China decoupling to a multifoci network: MNCs’ adaptive responses," Business Horizons, Elsevier, vol. 69(3), pages 319-334.
    12. Huang, Wenchuan & Hu, Yuanyuan & Chen, Shouming, 2026. "Overcoming liability of origin: the effects of EM-MNEs’ ESG reporting on establishment mode choice," Journal of Business Research, Elsevier, vol. 210(C).
    13. 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).
    14. Lee, Liane W.Y. & Krasnikov, Alexander V., 2026. "Multinationality and strategic dynamic capabilities during sustainable development goals adoption: Evidence from a natural experiment," International Business Review, Elsevier, vol. 35(4).
    15. Pengcheng Ma & Lin Cui & Wenping Ye & Stephen X. Zhang, 2026. "Foreignness-based social comparison and strategic change: which peer groups matter and when?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 57(5), pages 768-790, July.

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