How do companies adjust their organization to national institutions: evidence from matched-pair engineering companies
Companies face competitive advantages or disadvantages depending on a country’s national institutional setting. The question is whether and how companies with highly similar product markets and technologies are able to stay competitive if they are located in disadvantaged national institutional settings. Building on the Varieties of Capitalism approach, we analyze the effect of different national institutional settings on one important characteristic of a company’s organizational structure, the span of control of production supervisors. Through plant interviews, we generated a unique dataset of matched-pair engineering companies in Germany, Switzerland, the UK, and the U.S. The findings indicate that the span of control is an important mechanism of adjustment to national institutional settings. Production supervisors in companies producing in coherently coordinated market economy like Germany have on average a broader span of control than those in coherently liberal market economy like the U.S. However, in mixed institutional settings like Switzerland and the UK, we find companies with a broad and companies with a narrow span of control, thus indicating that companies have the strategic power to adjust with their own company-level institutions to either complementing or substituting national institutions.
|Date of creation:||Dec 2012|
|Date of revision:||Apr 2013|
|Contact details of provider:|| Postal: |
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.isu.uzh.ch
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cihan Bilginsoy, 2003. "The hazards of training: Attrition and retention in construction industry apprenticeship programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 54-67, October.
- Bernhard Ebbinghaus & Jelle Visser, 1998. "When Institutions Matter: Union Growth and Decline in Western Europe, 1950-95," MZES Working Papers 30, MZES.
- John H Dunning, 2009. "Location and the multinational enterprise: A neglected factor?," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 5-19, January.
- repec:sae:niesru:v:162:y::i:1:p:85-98 is not listed on IDEAS
- Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January.
- Gregory Jackson & Richard Deeg, 2008. "Comparing capitalisms: understanding institutional diversity and its implications for international business," Journal of International Business Studies, Palgrave Macmillan, vol. 39(4), pages 540-561, June.
- William N. Cooke, 1997. "The Influence of industrial relations factors on U.S. foreign direct investment abroad," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 3-17, October.
- Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-83, November.
- Martin R Schneider & Conrad Schulze-Bentrop & Mihai Paunescu, 2010. "Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance," Journal of International Business Studies, Palgrave Macmillan, vol. 41(2), pages 246-266, February.
- Etienne Wasmer, 2006. "General versus Specific Skills in Labor Markets with Search Frictions and Firing Costs," American Economic Review, American Economic Association, vol. 96(3), pages 811-831, June.
- David Soskice, 1997. "German technology policy, innovation, and national institutional frameworks," Industry and Innovation, Taylor & Francis Journals, vol. 4(1), pages 75-96.
- Gordon Redding, 2005. "The thick description and comparison of societal systems of capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 36(2), pages 123-155, March.
- Steven Casper & Mark Lehrer & David Soskice, 1999. "Can High-technology Industries Prosper in Germany? Institutional Frameworks and the Evolution of the German Software and Biotechnology Industries," Industry and Innovation, Taylor & Francis Journals, vol. 6(1), pages 5-24.
When requesting a correction, please mention this item's handle: RePEc:iso:educat:0082. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Eggenberger)
If references are entirely missing, you can add them using this form.