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Critiques of international business (IB) have long pointed to the weaknesses in the understanding of context. This has ignited debate on the understanding of institutions and how they “matter” for IB. Yet how institutions matter ultimately depends on how IB applies institutional theory. It is argued that institutional-based research is dominated by a narrow set of approaches, largely overlooking institutional perspectives that account for institutional diversity. This paper aims to forward the argument that IB research should lend greater attention to comparing the topography of institutional configurations by bringing political economy “back in” to the IB domain.

Using principal components analysis and hierarchical cluster analysis, the authors provide IB with a taxonomy of capitalist institutional diversity which defines the landscape of political economies.

The authors show institutional diversity is characterised by a range of capitalist clusters and configuration arrangements, identifying four clusters with distinct modes of capitalism as well as specifying intra-cluster differences to propose nine varieties of capitalism. This paper allows IB scholars to lend closer attention to the institutional context within which firms operate. If the configurations of institutions “matter” for IB scholarship, then clearly, a quantitative blueprint to assess institutional diversity remains central to the momentum of such “institutional turn.”

This paper provides a comprehensive survey of institutional theory, serving as a valuable resource for the application of context within international business. Further, our taxonomy allows international business scholars to utilise a robust framework to examine the diverse institutional context within which firms operate, whilst extending to support the analysis of broader socioeconomic outcomes. This taxonomy therefore allows international business scholars to utilise a robust framework to examine the institutional context within which firms operate.

The purpose of this study is to evaluate different strands of institutional theory within the internationalization process of multinational enterprises (MNEs) in developed and emerging economies. In the light of this purpose, the authors try to fill the gap in the literature through analysing the main institutional theories: neo-institutionalism, new institutional economics, comparative capitalism and the institution-based view. Therefore, the main concern is to determine the distribution of different strands of institutional theory in its subfields in this study.

This study provides a profound analysis of different strands of institutional theory within the period from 1990 to 2018 in a larger sample. With a qualitative content analysis, authors reviewed 150 articles using different strands of institutional theory at both theoretical and analytical level and accessed 25 journals published in Social Science Citations Index between 1990 and 2018. In this study, authors used the inductive approach and the qualitative content analysis (Duriau et al., 2007) and adopted a research method to investigate different strands of institutional theory within the internationalization process of MNEs in developed and emerging markets (EMs).

Coders have synthesized the strands of institutional theory in detail to analyse the theoretical contribution of the study. The strands of institutional theory have been analysed both by institutional perspective and citation analysis. Coders classify the analysis level into three main categories. These are country, headquarter and subsidiary level. Our findings are related to the basic determinants and assumptions of different strands of institutional theory. Because in new institutional economics, analysis levels are country and industry. On the other hand in institution-based view, analysis levels are country and firm. Finally in comparative capitalism, analysis levels are country and region and, in neo-institutionalism analysis level is organization itself. In this study, findings show that sociology-based institutional strands, especially neo-institutionalism, are more preferred than other theories.

This study’s content analysis is limited to scope of selected journals. However, this study may suffer from publication bias. The authors examined only peer-reviewed articles from selected journals and did not include book chapters, book reviews, editor and special issue editor articles, research notes, conference papers and congress invitations. The important theoretical limitation of this study is to clarify the different strands of institutional theory in international business literature (Aguilera and Grøgaard, 2019). The firm size of MNEs is not included in this study, but it should be involved in coding categories in future studies.

This study provides the largest sample up to now and covers developed markets and EMs. Authors analysed this research from four perspectives: theoretical foundation, methodology, location and entry mode choices. On the other hand, this study shows that the institutional environment not only mitigates or mediates the effects but also directs the effects on foreign direct investment’s internationalization process of location choice and entry strategies.

The purpose of this paper is to analyse the attitude of European firms towards human resource management (HRM) configuration and HRM practices on a country-level basis. Assuming the persistent relevance of institutional framework, the paper investigates the applicability of the varieties of capitalism (VoC) theory to these domains in European countries and their evolution between 1999 and 2005.

The paper selects and groups together variables that are related to both HRM configuration and HRM practices using data coming from the survey performed in 2005 by the Cranfield Network on International HRM. Then, a hierarchical cluster analysis among 16 European countries is performed. Relevant varieties are obtained through the combined application of two stopping rules.

Evidence shows that the evolution of HR policies over time is in line with an extended VoC approach that divides Europe in four VoC. One of these varieties (the “State” model), however, is not validated after a robustness check.

For HR managers, the implementation of common personnel policies within the same variety of capitalism could represent a potential fertile ground for beneficial interactions and mutual learning among HR functions. In particular, the classification suggested in the paper does matter if an intervention on HRM practices is accompanied by a change in the participation of the HR department to the decision-making process and/or in the delegation of responsibilities between the HR department and the line management.

The authors’ results contribute to the debate on the relationship between HRM and institutional context in two ways. First, they show that an extended VoC framework can explain the differentiation among European countries with regard to HRM domains. Notably, the correlation between the structure of the HR function and the intensity of HRM practices generates a clusterization of European countries based on at least three models of capitalism. Second, it emerges from the analysis that a substantial shift occurred with respect to the previous wave of the survey together with an increase of similarities between countries.

The purpose of this paper is to explore varieties of capitalism (VoC) as a moderator of the effect of: the strategic HR function role; and the level of union presence on the adoption of different human resource management (HRM) practices categorized as either person-centered or performance-centered.

The authors use data on both multinationals and locally owned firms from 14 OECD countries, collected through the Cranet 2009 survey. The hypotheses of the proposed model were tested using hierarchical multiple regression analysis.

Evidence shows that the strategic HR function is positively related to the adoption of both types of HRM practices, whereas higher levels of union presence inhibit the adoption of performance-centered practices and promote the adoption of person-centered practices. In addition, although VoC does not show any significant direct effects on HR practices, there is a moderating effect of VoC on the HR function role – HRM practices and union presence – HRM practices relationships.

The use of survey data with single respondents might produce reliability problems. Additionally, the data used are cross-sectional, which means that causality cannot be determined.

Managers in multinationals corporations and local firms must be aware of the distinct effects of the strategic HR function and trade union presence in different market economies. In particular, special attention must be paid when a firm expands globally, “outside the reach” of the national market economy or type of capitalism, and operates in different VoC.

The present paper contributes to better understanding the influence of VoC, not only on HRM practices, as in previous research, but also on the relationships between the HR function role and the level of union presence and the types of practices promoted.

The purpose of this paper is to develop a theoretical framework that addresses the question of how and why multinational corporations (MNCs) from developed economies engage in divergent patterns of institutional entrepreneurship (IE) in emerging markets.

The authors combine IB’s concept of institutional voids with comparative capitalism’s insights into the institutional embeddedness of firm capabilities and IE. This theoretical cross-fertilisation is instrumental in developing a refined understanding of institutional voids and how MNCs proactively engage with them.

The authors emphasise the notion of institutional voids as a relative concept and, thereby, move away from an ethnocentric view of emerging markets as “empty spaces” that are void of institutions. The authors’ framework proposes that MNCs from liberal and coordinated market economies experience institutional voids differently and engage in different patterns of IE.

The main limitation of this work is that the propositions are restricted to the country-of-origin effect and that the observations are based on anecdotal evidence only. Against these limitations the authors call for a more comprehensive research agenda in their conclusion.

The paper sensitises policymakers in emerging markets for the potentially different patterns of involvement of MNCs in their institutional environments. Specifically, the authors argue that MNCs may have a strong inclination to rebuild critical elements of their home country’s institutional setting in emerging markets. This touches upon questions of national sovereignty and highlights the need for emerging market policymakers to decide which kinds of institutional settings they would like or not like to see imported.

The paper provides a new and critical perspective of the mainstream IB concept of institutional voids. The authors’ key contribution is to highlight that the home country institutional context may substantially matter in how MNCs perceive and respond to institutional voids in emerging markets.

Based on the approach of the varieties of capitalism, this paper aims to investigate the influence of national governance characteristics on environmental disclosure.

This research analyzed companies based in coordinated economies, i.e. 1,815 companies from Austria, Belgium, Denmark, Finland, France, Germany, Italy, Japan, The Netherlands, Norway, Portugal, Spain and Sweden were investigated for the period 2009–2018. The authors created an index to measure environmental disclosure, and national governance was measured using the United Nations governance indicators.

The findings show that countries with greater transparency, democracy, citizen participation and government effectiveness tend to have companies with a greater environmental concern. The results allow us to conclude that the responsible behavior of companies is a mirror of the governance environment of the country where they operate. The findings have managerial implications.

Firms must be aware that institutional factors can influence their business. In institutional structures with low government effectiveness, little confidence in social rules and high levels of corruption, corporations tend to be less ethical.

This research used the varieties of capitalism approach to explain companies’ environmental disclosure. This is a recent approach to the institutional theory, and little explored in previous studies. Institutional level variables, such as governance indicators, can be used in other studies that analyze the relationship between institutional environment and corporate disclosure.

The purpose of this paper is to summarize the life and works of Alfred Chandler and highlight the impact of his thoughts on organizational theory, strategy and history.

The paper analyzes Alfred Chandler's life and the lasting contributions his works have provided to many disciplines as well as the work of his revisionists. Furthermore, the paper analyzes his contributions to the understanding of US business history and global business history.

Chandler's conceptualization of the growth of large business and management practices have shaped business history by transitioning from an American exceptionalist view to a more global comparative perspective.

The paper provides Chandler's insights as well as those of his revisionists regarding USA and comparative global business history.

The paper highlights Chandler's cross‐disciplinary impact and analyzes Chandlerian and revisionist perspectives in both the American exceptionalist as well as the global comparative eras of Chandler's life.

This study aims to draw researchers’ attention to the need to differentiate within the emerging market multinational companies (EMNCs) category. This study focuses on international business in Latin America to argue that the region’s specific institutional characteristics have consequences for within-firm decision-making regarding internationalization strategies. Additionally, the study suggests that to develop a more specific understanding of international business in emerging markets, it is important to consider how decision-makers define value and how they can capture such value.

The approach used in this study draws on the bathtub analogy used in micro-foundations research in international business. It proposes a multilevel analysis in which micro-level variation in within-firm decision-making is considered, while accounting for the conditioning effects of macro-level contextual factors.

The study identifies characteristics of the Latin American institutional context that are relevant to international business strategies and that potentially differ from other emerging market contexts. These include the pendular shifts to and from pro-market economic reform, fragmented government intervention in business, underdeveloped capital markets, low competition among firms and polarized labor markets. The study explains how these characteristics shape the definition of value and firm strategies to capture value in international markets, and provides examples from firms in different industries.

This study applies a value creation and capture perspective to international business in Latin America, allowing for the simultaneous consideration of macrolevel institutional characteristics and microlevel variation in decision-making regarding internationalization strategies. This perspective not only helps to distinguish Latin American EMNCs from companies from other emerging market contexts, but also explains the considerable variation in the internationalization strategies of firms within the region.

The purpose of this paper is to assess the extent to which institutional convergence has taken place in the new European Union (EU) member states. It does so by contrasting arguments that are inspired by transaction‐cost economics within the mainstream international‐business literature and contentions within the comparative‐capitalisms perspective. A corollary of arguments within the former is that those countries that have less transparent ways of doing business will post poorer economic growth records than those with more predictable and less costly regulations. By contrast, contentions within the comparative‐capitalisms literature lead to expectations that a broader set of institutional factors will shape economic growth.

The article adopts a fuzzy‐set qualitative comparative analysis approach to examine the necessary and sufficient causal conditions for economic growth in the region.

There is a great deal of institutional diversity within the new EU member states in Central and Eastern Europe. There are no clusters of countries around a specific variety of capitalism or an economic model that has above‐average economic growth rates and that is characterized by institutions that lower the costs of market transacting. This, in turn, suggests that convergence pressures are not as great as the mainstream international‐business literature has argued.

Future research could complement this study by adopting a cross‐country, comparative micro‐ or firm‐level approach to examine the ways in which different institutional factors, both individually and collectively, shape the growth of businesses and consequently, economies.

Mainstream international business tends to focus on regulation and market‐supporting institutions to explain growth in developing economies. This research has shown that a broader view of institutions needs to be adopted, as some countries have been able to post strong economic growth figures despite institutional environments that do not lower the costs of market‐based contracting.

The purpose of this paper is to explain the link between national business system (NBS) and innovation decisions at the firm level by offering sequentially ordered sense-making mechanisms that enable the formation of firm-specific knowledge repositories and knowledge-processing capabilities.

This study engages in an extensive scale development effort to collect representative data about the NBS in the Pakistani setting, complemented by relevant validity and reliability tests. The overall theoretical model was tested on 214 firms by means of a structural equation modeling approach, using partial least-squares algorithms.

The results statistically supported the role of firm-level knowledge repositories (intellectual capital) and knowledge exploration and exploitation capabilities (absorptive capacity) as sequential mediators in the association of NBS and firm-level innovation. Besides, bridging networks of lateral ties among Pakistani businesses are found to be more effective than bonding networks of vertical ties in encouraging radical innovations.

This study significantly extends the literature about the NBS approach. It provides specific sense-making mechanisms (i.e. priming, triggering and editing) about how abstract institutional templates constituted at the business system level are translated into firm-level actionable sets by the help of intangible resource repositories and processes that guide knowledge exploration and exploitation.