Search results

The implemented European Union Services Directive aimed at creating a unified European market for trade in services. However, the implementation of the institutions was not fully successful as to the characteristics of international services caused challenges in the ratification of the Directive. Research on international services is facing similar challenges based on the fragmented, inconclusive, and at times even contradictory findings of international services literature with regard to service characteristics. Thus, each academic field of international business, economic geography, and service management has tried to identify international service characteristics, but no unified characterization is found. The challenges in defining the different types of services, difference in the levels of analysis, and various impacts of policies and institutional environments on the service, cause these differences. The authors see the need for a unified framework that combines the different literatures and considers the policy implications. The authors develop a framework consisting of four components of international service characteristics, that is, the connectivity of service actors to the environment, the configuration of service activities within organizational set-ups, the dyadic collaborative interaction between service actors, and the created value by the services. The authors specifically consider policy and institutions as well as a vast variety of literature streams to support the arguments.

In the volatile, uncertain, complex, and ambiguous (VUCA) contemporary business environment intergovernmental organizations (IGOs) play a central role. Their objective is to align member countries for collective global problem solving activities under the guidance of the organization. They aim at providing global stability and security through the creation of supranational institutions. While political sciences have studied IGOs from a global political perspective, little is known about the influence of these IGOs and their supranational institutions on country institutional environments and business environments. Thus, the purpose of this chapter is to understand how IGOs influence these national institutional environments, especially considering the countries’ development levels. By using regime and institutional theory we are able to conceptualize the relation of supranational and national institutions within the differently developed countries. We identify two interconnected factors that impact this analysis, the strength of the national institutional environment of member countries and their power in the IGO. Using these factors, we identify a clash and misalignment of national and supranational institutions in emerging countries, which is leading to enhanced VUCA business environments. We provide an exemplary case that discusses institutional schisms created by the International Monetary Fund’s (IMF) influence in Argentina. Moreover, the impact of IGOs is significant in least developed countries and has little to no impact in highly developed countries.