Search results

Since the early 1990s, Brazil has adopted an experimental approach to environmental management. Its reforms continue to this day and have produced robust water-management policies. This article reveals the different positions, the power structures involved, and the result of the disputes and agreements concerning the social construction of legitimate environmental behaviour in jeans manufacturing.

Comparative case study. Data collection for this research started in 2017 and ended in 2020. The data were gathered by concentrating on a few cases in two clusters. The author visited public agencies, trade associations, and firms of all sizes and levels of specialization in the industry and conducted semi-structured interviews with them. The intention was to acquire systemic and deep knowledge of the local industry.

The article's findings demonstrate a divergence in typologies that reflects the ecological limits in the use of natural resources, law-enforcement policies, and firms' legal status. The article extends our understanding of the ability of organizations to respond to institutional pressures to become sustainable. This study's findings provide insights for policy design in times of increasingly catastrophic pollution in regions that are immersed in global competition.

The study focuses only on two industrial textile clusters in Brazil, which may not be representative of the wider industry in the country or in other regions. The findings may not be generalizable to other industries or locations with different ecological limits, legal frameworks, and firm structures.

The article's practical implications include the need for tailored regulatory frameworks, effective law enforcement policies, promoting a culture of environmental responsibility among businesses, and collaboration among stakeholders in promoting sustainability. Policymakers, regulators, and businesses in industrial textile clusters in Brazil and other regions facing similar ecological and regulatory challenges can use these insights to develop more effective policies and practices that balance economic growth with environmental sustainability.

State actors emerge as the most important stakeholder group in forging the upgrading of water-management systems and technology. The optimal solution to the problem is cross-institutional and multilevel collaboration and coalitions between the different authorities and organizations involved who need to pay due attention to the relevant ecological limits and social needs. Only when this multilevel collaboration is achieved and maintained will the state's agents be able to collaborate with industrial actors and society at large.

The article examines the various factors that influence water usage and analyses the dynamics of change in two distinct locations in an emerging market. It demonstrates that, despite the existence of the same regulatory framework in both locations, different outcomes can arise due to the construction of diverse coalitions between social actors.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2023-0154

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.

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 paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

This study reviews the literature on institutional theory in international business and examines the institutional factors behind the success or failure of multinational corporations (MNCs) in emerging markets.

This systematic literature review analysed 116 peer-reviewed articles published in leading journals between 2005 and 2022. The R package Bibliometrix and VOSviewer visualization software were used for analysis. A hybrid methodology combining bibliometric and content analyses was utilized to obtain a descriptive evaluation of the publication impact along with a keyword co-occurrence map, context-specific institutional effects and subsidiary strategies.

The Journal of International Business Studies, along with influential authors such as Mike W. Peng, Klaus Meyer, and Mehmet Demirbag, have taken the lead in advancing institutional theories for MNC internationalization in emerging markets. The clusters from the co-word analysis revealed dominant MNC entry modes, institutional distances and MNC localization strategies. The content analysis highlights how the institutional environment is operationalized across the macro-, micro- and meso-institutional contexts and how the MNC subsidiary responds in emerging markets. Meso-level interactions emphasize the relational aspects of business strategies in emerging markets.

Contextualizing subsidiary strategies and institutional forms can help managers align their strategic responses to the dynamic relationship between subsidiaries and the institutional environment. The review findings will enable policymakers to simplify regulatory policies and encourage MNC subsidiary networks with local stakeholders in emerging markets.

Legitimacy strategies such as corporate community involvement in emerging markets are crucial for enhancing societal support and removing stakeholders' scepticism for MNC business operations in emerging markets. Moral legitimacy should be implemented by managers, such as lending support to disaster management efforts and humanitarian crises, as they expand to new business environments of emerging markets.

This study is the first to explore institutional diversity and subsidiary strategic responses in a three-layered institutional context. The findings highlight the relevance of contextualizing institutional perspectives for international business scholars and practitioners as they help build context-specific theoretical frameworks and business strategies. Future research recommendations are suggested in the macro-, micro- and meso-institutional contexts.

The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and practices.

Using a multiple case-study approach combining comparative and cross-sectional methods with semi-structured interviews, primary data was collected from eight corporations that actively participated in CSR activities in Iran. A microanalysis approach was used to examine the meanings and dynamics in the data. Through thematic analysis and pattern-matching techniques, the authors separately examined the roles of formal and informal institutions. Cross-case analysis was used to highlight the cases’ similarities and differences.

This study demonstrates that both formal and informal institutional structures exist in Iran and that both types influence CSR. This study also shows that informal institutions (such as personal values, culture, religion, traditions, charity and philanthropy) play a more explicit role than formal institutions (such as legal regulations and laws) in shaping CSR adoption policies and practices. The results indicate that, among institutions linked to CSR, formal and informal institutions are complementary and potentiate each other in Iran. Nevertheless, compared to formal ones, informal institutions play a more prominent role in shaping CSR policies and practices.

The authors recognize that, although the eight corporations are large, and although they interviewed their key personnel, they do not claim that these findings are generalizable, owing to the qualitative nature of the study and the small number of selected corporations.

This study makes relevant theoretical and empirical contributions. First, it contributes to the growing body of CSR literature that highlights the necessity of linking informal and formal institutions. Although the CSR literature lacks research on informal institutions in developing economies, researchers have yet to push forward and explore how the CSR adoption process works in developing economies that have influential informal institutions.

This study employs Stein Rokkan's methodological approach to analyse state formation in the Greater Middle East. It develops a conceptual framework distinguishing colonial, populist and democratic pacts, suitable for analysis of state formation and nation-building through to the present period. The framework relies on historical institutionalism. The methodology, however, is Rokkan's. The initial conceptual analysis also specifies differences between European and the Middle Eastern state formation processes. It is followed by a brief and selective discussion of historical preconditions. Next, the method of plotting singular cases into conceptual-typological maps is applied to 20 cases in the Greater Middle East (including Afghanistan, Iran and Turkey). For reasons of space, the empirical analysis is limited to the colonial period (1870s to the end of World War 1). Three typologies are combined into one conceptual-typological map of this period. The vertical left-hand axis provides a composite typology that clarifies cultural-territorial preconditions. The horizontal axis specifies transformations of the region's agrarian class structures since the mid-19th century reforms. The right-hand vertical axis provides a four-layered typology of processes of external intervention. A final section presents selected comparative case reconstructions. To the authors' knowledge, this is the first time such a Rokkan-style conceptual-typological map has been constructed for a non-European region.

This study examines the impact of chief executive officer (CEO) power, institutional investors and their interaction on green financing provided by Bangladeshi financial institutions and the moderating effect of government policy and CEO political connections on these relations.

We employ ordinary least squares (OLS) regressions and interaction terms among variables of interest for the empirical analysis.

Green financing decreases with CEO power, implying that CEOs of this country’s financial institutions are averse to green loans, whereas institutional investors increase green financing extended by these institutions. The government policy, which includes financial incentives for complying financial institutions, strengthens institutional investors' positive impact on green financing, but it does not change CEOs' aversion to green loans. Institutional investors have a positive moderating effect on the relationship between green finance (GF) and CEO power, but this positive moderating effect is negated in banks where the government owns a stake, possibly because CEOs of state-owned financial institutions are politically connected, which reduces institutional investors’ influence over them.

This study is unique in that it is the first to examine how the interaction among different stakeholders affects green financing in a unique setting. As the literature is almost silent on this topic, the findings of this paper are expected to raise policymakers’ awareness of the obstacles that hamper the efforts of developing countries to go green.

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival and growth. This chapter discusses how such institutions, which vary in their nature and characteristics, shape firm strategies for climate change adaptation. Exploring different versions of institutional theory, the chapter demonstrates how and why institutional characteristics affect typical patterns of firm ownership, governance, and capabilities. These, in turn, influence companies’ internationalisation and climate-change strategies. Climate change poses challenges to how we understand firms’ strategic decisions from both an international business (IB) (HQ–subsidiary relations) and global value chains (GVC) (buyer–supplier relations) perspective. However, climate change also provides opportunities for companies to gain competitive advantages – if firms can reconfigure and adapt faster than their competitors. Existing IB and GVC research tends to downplay the importance of climate change strategies and the ways in which coherent or dysfunctional institutions affect firms’ reconfiguration and adaptation strategies in a globally dispersed network of value creation. This chapter presents a perspective on the institutional conditions that affect firms’ climate change strategies regarding ownership, location, and internalisation (OLI), and GVCs, with ‘investment’ and ‘emerging standards’ playing a significant role. The authors illustrate the discussion using several examples from the Global South (i.e. Bangladesh) and the Global North (i.e. Denmark, Sweden, and Germany) with a special emphasis on the garment industry. The aim is to encourage future research to examine how a ‘business systems’, or varieties of capitalism, institutional perspective can complement the analysis of sustainability and climate change strategies in IB and GVC studies.

Entrepreneurial activity is a phenomenon that increases the economic growth of countries and improves their social welfare. The economic development levels of countries have significant effects on these entrepreneurial activities. This research examines which institutional and macroeconomic variables explain early-stage entrepreneurship activities in developed and developing economies.

The authors conducted panel data analysis on the data from the Global Entrepreneurship Monitor (GEM) and International Monetary Fund (IMF) surveys covering the years 2009–2018.

First, the authors' results reveal that cognitive, normative and regulatory institutions and macroeconomic factors affect early-stage entrepreneurial activity in developed and developing countries differently. Second, the authors' findings indicate that cognitive, normative and regulatory institutions affect early-stage entrepreneurship more positively in developed than developing countries. Finally, the authors' results report that macroeconomic factors are more effective in early-stage entrepreneurial activity in developing countries than in developed countries.

This study provides a better understanding of the components that help explain the differences in entrepreneurship between developed and developing countries regarding institutions and macroeconomic factors. In this way, it contributes to developing entrepreneurship literature with the theoretical achievements of combining institutional theory and macroeconomic indicators with entrepreneurship literature.