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1 – 10 of over 5000Patricia Loga, Andrew Cardow and Andy Asquith
Violent geo-political conflicts are on the rise across the globe, particularly within fragile states. Using path-dependency theory, this paper aims to explore Fiji in the context…
Abstract
Purpose
Violent geo-political conflicts are on the rise across the globe, particularly within fragile states. Using path-dependency theory, this paper aims to explore Fiji in the context of its public administrative history examining the legacies of history that have contributed to its ongoing conflicts.
Design/methodology/approach
An archival document analysis along with a theoretical thematic analysis was used to collect and assess data. Themes were identified that explain how and when the conflict became path-dependent.
Findings
Analysing conflict as path-dependent demonstrates how indirect rule while Fiji was under colonial rule, and the short time it has taken for the nation to transition from a colony to an independent State contributed to the eruption of conflicts in Fiji.
Originality/value
The research makes two key contributions, namely, it develops a theoretical understanding of conflict using path-dependency theory and it uncovers legacies of colonialism that have shaped conflict in Fiji.
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Antti Rautiainen and Robert W. Scapens
The purpose of this paper is to discuss the compatibility of actor network theory (ANT) and new institutional sociology (NIS) in analysing a case study of accounting change.
Abstract
Purpose
The purpose of this paper is to discuss the compatibility of actor network theory (ANT) and new institutional sociology (NIS) in analysing a case study of accounting change.
Design/methodology/approach
This is an interpretive case study.
Findings
The Finnish case city experienced several path‐dependent changes concerning performance measurement (PM), financial reporting and the adoption of enterprise resource planning system (ERP). New tools such as the ERP have a potential to transform the actors and to change the agency of the actors. Furthermore, the concepts drawing on both ANT and NIS can together enrich analyses of accounting changes.
Research limitations/implications
The case analysis suggests guidelines for using ANT and/or NIS in accounting studies.
Practical implications
Understanding accounting developments as an intentional and path‐dependent process affected and constrained by complex networks, pressures and actors should contribute to better management of accounting changes.
Originality/value
Being informed by both ANT and NIS improves our understanding of accounting change and stability, serendipity, practice variations, changes beyond the minimum required to satisfy external requirements, and of the continued use of some accounting tools despite their limited functionality. Furthermore, we introduce the concepts dynamic agency and constrained transformation for studies of accounting change.
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Nicolette van Gestel and Jean‐Michel Herbillon
To explore and explain differences in reform of activation policies, comparing the shifts in governance in France and The Netherlands from the 1990s onwards.
Abstract
Purpose
To explore and explain differences in reform of activation policies, comparing the shifts in governance in France and The Netherlands from the 1990s onwards.
Design/methodology/approach
The paper is based on in‐depth case studies of the reform process in activation policies, using documentary sources and interviews with several stake‐holders. The theoretical scope is the debate on institutional change, path‐dependency and convergence.
Findings
Although both countries demonstrate converging tendencies in the transformation of their activation policies, there are remarkable differences in the new modes of governance. Moving away from a traditionally hierarchical organisation, France is gradually developing a network model with more emphasis on decentralisation. Alternatively, The Netherlands privatised their public employment services and explore principal – agent realtions in activation. The institutional context of both nation, in particular the concept of path‐dependency, seems crucial in the explanation of these differences. However, some new elements are path‐breaking in a national context but do not illustrate converging trends.
Research limitations/implications
This comparative study is aimed at the fields of employment services, social benefits and social assistance in two countries. For a more complete approach of the changes is activation policies, further research is needed to include other fields of social policy and other nations whithin Europe.
Originality/value
The paper develops both empirical and theoretical conclusions on the path‐dependent and convergin elements in transforming labour market coordination throughout Europe.
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Luis Brites Pereira and John Manuel Luiz
The purpose of this paper is to examine the evolution of political and economic institutions, their persistence and interdependence and their effects on economic progress in…
Abstract
Purpose
The purpose of this paper is to examine the evolution of political and economic institutions, their persistence and interdependence and their effects on economic progress in Mozambique.
Design/methodology/approach
Using a unique data set, which has developed detailed long-run indices of institutional change in Mozambique from 1900 onwards, the research utilizes time-series econometrics to estimate cointegration relations and Vector Autoregressive and Vector Error Correction models, and also Granger causality, correlation and residual analysis when interpreting the estimation results.
Findings
It shows support for path dependence in political and economic institutions as well as the critical juncture theory and modernization hypothesis, and for webs of association between these institutions and economic development. It provides evidence of an equilibrium-dependent process, where history does matter (as do early conditions), and whose impact may differ depending on the nature of institutional arrangements. Various institutions created during colonial times have a bearing on the present state of institutions in Mozambique, as reflected in important continuities regarding the forms of political economy, among others.
Originality/value
The work contributes to existing research not only through the employment of a new set of institutional measures, which allows for a particularly long time-series investigation in a developing country setting, but also through its contribution to studies on modernization and critical junctures but in a longitudinal manner which allows for the exploration of complex dynamics embedded within a country’s particular political economy. The implications are far-reaching and carry importance beyond the academy given the pressure on policymakers to get things right because of the persistence of institutions and their consequences and the associated path dependency.
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John Rankin Wood Riach and Martin R. Schneider
The purpose of this paper is to revisit the disastrous DaimlerChrysler AG takeover episode from 1998 to 2007 in order to arrive at a more comprehensive explanation of this and…
Abstract
Purpose
The purpose of this paper is to revisit the disastrous DaimlerChrysler AG takeover episode from 1998 to 2007 in order to arrive at a more comprehensive explanation of this and other merger and takeover failures based on institutional theory.
Design/methodology/approach
The case study is based on various secondary sources of information and on the insights that one of the authors gained from working for 14 years in various positions for Daimler-Benz and DaimlerChrysler.
Findings
DaimlerChrysler failed because top management made mistakes in trying to globalize the company. They were unable to realize possible synergies between the two companies, which brought complementary resources into the merger. Furthermore, they did not account for the institutional embeddedness of strategies when they adopted lean production globally, diffused the production system developed in Germany to other parts of the world and tried to implement a global stock enlisted in New York and Frankfurt. The underlying theoretical framework is relevant for other merger and acquisition cases. It features institutional embeddedness, path dependency and institutional arbitrage.
Originality/value
The paper develops an institutional perspective on DaimlerChrysler and on cross-border merger and acquisition failure more generally. The perspective is organized around the varieties-of-capitalism approach. This contribution is important because there is increasing dissatisfaction with the dominant explanation of cross-border merger and acquisition failure, which is based on the allegedly failed management of culture “clashes.”
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Mohammad B. Rana and Matthew M. C. Allen
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…
Abstract
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.
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The paper argues that the form, structure and ideologies of elites are embedded in particular forms of capitalism. Whilst elites in these different societies are engaged in a…
Abstract
The paper argues that the form, structure and ideologies of elites are embedded in particular forms of capitalism. Whilst elites in these different societies are engaged in a common task of ensuring that their position is sustained and protected in the light of economic and political uncertainties, the way in which they are able to do this is shaped by the particular forms of legitimation, coordination and cohesion that are embedded in particular institutional trajectories, path dependencies and complementarities. However, the paper emphasizes that these institutional structures are dependent on particular international economic orders and when these change either over the short or the long term, elites often find themselves struggling to maintain their position without significant changes. The paper examines firstly how the long-term change from Keynesianism to neo-liberalism in the international economic order led to changes in the terrain on which elites in different countries formed and exercised power and secondly how the immediate and drastic short-term changes in the global economy arising from the financial crisis has impacted on elites.
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This paper investigates the factors responsible for the emergence of different arrangements of state–society relations. Being concerned with the relations related to the…
Abstract
Purpose
This paper investigates the factors responsible for the emergence of different arrangements of state–society relations. Being concerned with the relations related to the industrial sector, this study focuses more on state–business–labor relations (SBLRs), especially on power dynamics between the main actors in these relations, namely, the state, tycoons, entrepreneurs and labor.
Design/methodology/approach
Based on power dynamics, four SBLR modes are identified and differentiated according to state power vis-à-vis non-state actors and tycoon power vis-à-vis the other non-state actors. The balanced mode is characterized by balanced power relations among the four considered actors. In the capture mode, tycoons are more powerful than other actors, including the state, although other nonsocial actors have organizational rights. The crony mode has powerful state, subservient tycoons who enjoy high levels of favoritism and low organizational power for the other social actors. Finally, the state-dominance mode has powerful state, low levels of favoritism to tycoons and low organizational power for all social actors. The paper then explores the factors responsible for the emergence of each of these modes by investigating the factors’ effects on state power and favoritism to tycoons. The investigated factors include historical political–economic, geographical, legal and cultural factors. The hypothesized effects of these factors are then tested using a random-effects probit regression model, investigating how the different factors affect the probability of the existence of the studied SBLR modes.
Findings
The results support much of the hypothesized relations and place more emphasis on some of the investigated factors. Earlier development is clearly responsible for the emergence of either the balanced or the state-capture SBLR mode. Geographical conditions favorable for development, such as latitude and metal richness, also lead to the emergence of either mode. The communist heritage, and more accurately the post-communist economic and incomplete political liberalism of the transition stage, contributed to the emergence of the state-capture SBLR mode. The British legal system, with the power it provides to non-state actors through the independence of judges and other measures, contributes to the emergence of the balanced SBLR mode. Cultural factors are largely responsible for the emergence of the crony SBLR mode, especially hierarchical and collectivist cultures, as well as ethnic fractionalization. On the other hand, the culture of Confucians has the strongest influence on the emergence of state dominance, while other cultures play a marginal role in its rise, and ethnic fractionalization marginally defuses the ability of the state to dominate without resorting to favoritism. Finally, access to rich natural resources, by enriching the state independently from social actors’ financial resources (e.g. taxation), marginally increases the probability of the emergence of the state-dominance mode.
Research limitations/implications
There is room for path dependency to explain the emergence of different SBLR modes in many countries. Unfortunately, the introduced regression model and any quantitative empirical work would not be able to effectively investigate such a process. Instead, an approach depending on case studies and a deeper investigation of country-specific historical political development is needed to complement the research done here. Conducting such an additional quest would help in reaching a more comprehensive understanding of why different countries have different SBLR modes. This should ultimately help in answering an equally important question: How to reverse engineer the emergence of favorable SBLR modes?
Practical implications
Although this paper did not investigate the economic merits or mischiefs of each of the studied modes, it is plausible to think of the balanced SBLR as the best mode. This is supported not only by the fact that most of the countries of this mode are developed countries but also by the attractiveness of the power dynamics governing this mode—a more balanced power among different SBLR actors. While some factors are almost impossible to replicate, for example, geographical factors, reform could target the factors that could be changed or mitigated. This is true for legal reform, especially for fostering the independence of judges. Culture is often regarded as a sticky institution. However, this is not always true, even though the change happens in the long run. A sort of dynamism should always be considered when referring to culture through time and space. Institutional reform could be instrumental in the long run in this regard. Conducting such reform with the help of such “exogenous” institutions should always consider the match between these institutions and “endogenous” institutions, such as culture. That is to say, the connection between democratization, fostering accountability and curbing favoritism and cultural values leaning toward these principles should be firmly established. Finally, a point of optimism is that—based on the results of this paper—reaching a high state of development could increase the chances of realizing a more balanced SBLR mode in the long run.
Originality/value
This paper represents a novel contribution to a topic that has hardly been addressed in the literature. The methodology that is used identifies different state–society relation modes and focuses on power relations in SBLRs is another important contribution to the present literature in many fields, such as institutional economics, socioeconomics and political economy.
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Blanca Martins Rodriguez and José María Viedma Martí
The global knowledge economy has put the focus on the regional aspects of economic growth. It has also shifted development perspectives from output to input factors as production…
Abstract
Purpose
The global knowledge economy has put the focus on the regional aspects of economic growth. It has also shifted development perspectives from output to input factors as production has become more knowledge‐based. Researchers have sought a better understanding of how firms, universities and government institutions deploy their core resources and competencies and interact to accrue economic growth. The “Region's intellectual capital benchmarking system” (RICBS) is a strategic assessment methodology designed to tackle these issues. It also aims to avoid potential lock‐ins and other institutional inefficacies that have proven pernicious, especially to developing countries' economic growth and development prospects.
Design/methodology/approach
Harvests on national/regional innovation systems theoretical framework and Viedma's methodology to evaluate the microclusters' capacity for competitiveness.
Findings
Building a region's innovation capacity demands an integrated and comprehensive framework to understand its underpinnings at all three micro, meso and macro levels. It is just as important to fulfill the requirements for its overall effectiveness – i.e. an in‐depth diagnosis of the region's economic, technical and institutional foundations and the key stakeholders committed to a long‐term vision, as well as a systematic and critical evaluation of the whole.
Practical implications
Provides development agencies with a tool for promoting innovation‐based policies and thus a more competitive allocation of resources.
Originality/value
Assumes that benchmarking can contribute significantly to grounding the analysis of a region's innovation and competencies building capacity and to allocating resources more effectively within the economy. It also focuses on the potential of an evaluation system to overcome undesirable lock‐ins and path‐dependencies.
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