Beyond the ‘Rules of the Game’: Three Institutional Approaches and How They Matter for International Business

Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience

“…and to ignore the institutional factors that are 'internal' to the firm, such as differences between business systems (Whitley 1998;Zhang and Whitley 2013). Although scholars have been developing new measures of institutional distance based on Whitley's work (e.g., Hotho 2009;Hotho and Pedersen 2012), to date, these measures have focussed on the European context and have not been extended to include several emerging market countries. Future research on emerging markets can therefore contribute to developing these new measures of institutional comparison, which can potentially lead to new insights into the relationship between institutional distance and subsidiary performance.…”

Advancing Nonmarket Strategy Research: Institutional Perspectives in a Changing World

“…At first glance, the research is embedded in multiple yet discrete institutional perspectives and levels of analysis (at times intertwined and overlapping) to explain the phenomenon. As Hotho and Pedersen (2012) point out, however, there is a widely understood division of this literature into three somewhat distinct strands or streams. In the IB area, for example, they note that the papers in a 2008 Journal of International Business Studies special issue on "Institutions and International Business" draw on these three specific institutional approaches: new institutional economics (Clougherty & Grajek, 2008), neo-institutional perspectives (Orr & Scott, 2008), and national business systems (Jackson & Deeg, 2008) and that is the basic classification we adopt here.…”

“…NMS, like IB, is a field that draws on several disciplines and is concerned with multiple levels of analysis, and so it is only natural that different traditions of institutional theory inform NMS (Hotho & Pedersen, 2012). We begin by looking at the multifaceted concept of NMS that still seems underdeveloped, misunderstood, incorrectly applied, and inappropriately implemented.…”

“…Here we draw on that review in our analysis of how institutional perspectives can inform NMS. Hotho and Pedersen (2012) begin by noting that scholars of politics, law, economics, sociology, and management have offered varied conceptualizations of institutions and their impact. Further, they suggest that this diversity of perceptions "implies that institutional approaches differ in their explanatory power in that they address and explain fundamentally difference facets of social life (Hotho & Pedersen, 2012, p. 238).…”

Theoretical Foundations

“…Table 3, the institution-based view draws upon at least three distinct intellectual roots: (1) institutional economics, (2) institutional theory in sociology and organizational theory, and (3) bargaining theory applied to MNEs and governments. 2 These lines of theorizing often lead to similar predictions ), but their underlying logic and their assumptions about human behavior are quite different (Gelbuda, Meyer, & Delios, 2008;Hotho & Pedersen, 2012;Kostova, Roth, & Dacin, 2008). Table 3 here *** Institutions as incentive structures.…”