The institution-based view of strategyhow to measure it

  1. Garrido, Elisabet 1
  2. Gómez Villascuerna, Jaime 2
  3. Maicas López, Juan Pablo 1
  4. Orcos Sánchez, Raquel 3
  1. 1 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

  3. 3 CEU San Pablo, Julián Romea, 23, Madrid, Spain
Revista:
Business Research Quarterly

ISSN: 2340-9444 2340-9436

Ano de publicación: 2014

Volume: 17

Número: 2

Páxinas: 82-101

Tipo: Artigo

DOI: 10.1016/J.BRQ.2013.11.001 DIALNET GOOGLE SCHOLAR lock_openAcceso aberto editor

Outras publicacións en: Business Research Quarterly

Repositorio institucional: lock_openAcceso aberto Editor

Resumo

The institution-based view of strategy has emerged as a leading perspective in Strategic Management. It incorporates the institutional dimension when offering relevant answers to the fundamental questions of strategy. One of the challenges of this perspective is to develop stronger measures of institutions (Peng et al., 2009). This paper seeks to contribute in this direction by offering a detailed analysis of the main measures of institutions that previous works in Strategic Management have used. Our aim is to offer a guide that will help researchers to decide how they should incorporate the institutional dimension into their empirical work.

Referencias bibliográficas

  • Ahn M., York A. Resource-based and institution-based approaches to biotechnology industry development in Malaysia. Asia Pacific Journal of Management 2011, 28(2):257-275.
  • Ahuja G., Yayavaram S. Explaining influence rents: the case for an institutions-based view of strategy. Organization Science 2011, 22(6):1631-1652.
  • Andrews K. The Concepts of Corporate Strategy 1971, Dow Jones-Irwin, Homewood, IL.
  • Ansoff H. Corporate Strategy 1965, McGraw Hill, New York.
  • Bamberger P. Beyond contextualization: using context theories to narrow the micro-macro gap in management research. Academy of Management Journal 2008, 51(5):839-846.
  • Barney J. Firm resources and sustained competitive advantage. Journal of Management 1991, 17(1):99-120.
  • Boyd R., Richerson P.J. Why does culture increase human adaptability?. Ethology and Sociobiology 1995, 16(2):125-143.
  • Brewer P., Venaik S. Individualism-collectivism in Hofstede and GLOBE. Journal of International Business Studies 2011, 42(3):436-445.
  • Chakrabarti R., Gupta-Mukherjee S., Jayaraman N. Mars-Venus marriages: culture and cross-border M&A. Journal of International Business Studies 2009, 40(2):216-236.
  • Chan C.M., Isobe T., Makino S. Which country matters? Institutional development and foreign affiliate performance. Strategic Management Journal 2008, 29(11):1178-1205.
  • Chan C.M., Makino S., Isobe T. Does subnational region matter? Foreign affiliate performance in the United States and China. Strategic Management Journal 2010, 31(11):1226-1243.
  • Chandler A.D. Strategy and Structure 1962, MIT Press, Cambridge.
  • Chang S.J., Rosenzweig P.M. The choice of entry mode in sequential foreign direct investment. Strategic Management Journal 2001, 22(8):747-776.
  • Coase R.H. The Nature of the Firm. Economica 1937, N.S.4:385-405.
  • Crossland C., Hambrick D.C. Differences in managerial discretion across countries: how nation-level institutions affect the degree to which CEOs matter. Strategic Management Journal 2012, 32(8):797-819.
  • Cuervo-Cazurra A. Extending theory by analyzing developing country multinational companies: solving the Goldilocks debate. Global Strategy Journal 2012, 2(3):153-167.
  • Cuervo-Cazurra A., Genc M. Transforming disadvantages into advantages: developing-country MNEs in the least developed countries. Journal of International Business Studies 2011, 39(6):957-979.
  • DiMaggio P.J., Powell W.W. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review 1983, 48(2):147-160.
  • DiRienzo C.E., Das J., Cort K.T., Burbridge J. Corruption and the role of information. Journal of International Business Studies 2007, 38(2):320-332.
  • Dunning J., Lundan S. Institutions and the OLI paradigm of the multinational enterprise. Asia Pacific Journal of Management 2008, 25(4):573-593.
  • Estrin S., Baghdasaryan D., Meyer K.E. The impact of institutional and human resource distance on international entry strategies. Journal of Management Studies 2009, 46(7):1171-1196.
  • Flores R.G., Aguilera R.V. Globalization and location choice: an analysis of US multinational firms in 1980 and 2000. Journal of International Business Studies 2007, 38:1187-1210.
  • Galang R.M.N. Government efficiency and International technology adoption: the spread of electronic ticketing among airlines. Journal of International Business Studies 2012, 43(7):631-654.
  • Globerman S., Shapiro D. Governance infrastructure and US foreign direct investment. Journal of International Business Studies 2003, 34(1):19-39.
  • Greenwood R., Hinings C.R. Understanding radical organizational change: bringing together the old and the new instituionalism. Academy of Management Review 1996, 21(4):1022-1054.
  • Gubbi S.R., Aulakh P.S., Ray S., Sarkar M., Chittoor R. Do international acquisitions by emerging-economy firms create shareholder value? The case of Indian firms. Journal of International Business Studies 2010, 41(3):397-418.
  • Guler I., Guillén M.F. Institutions and the internationalization of US venture capital firms. Journal of International Business Studies 2009, 41(2):185-205.
  • Habib M., Zurawicki L. Corruption and foreign direct investment. Journal of International Business Studies 2002, 33(2):291-307.
  • Hambrick D.C., Finkelstein S., Cho T.S., Jackson E.M. Isomorphism in reverse: institutional theory as an explanation for recent increases in intraindustry heterogeneity and managerial discretion. Research in organizational behavior 2005, vol. 26:307-350. JAI Press, Greenwich, CT.
  • Henisz W.J. The institutional environment for economic growth. Economics & Politics 2000, 12(1):1-31.
  • Hofstede G. Culture's Consequences: International Differences in Work-Related Values 1980, Sage, Beverly Hills, CA.
  • Hofstede G. What did GLOBE really measure? Researchers' minds versus respondents' minds. Journal of International Business Studies 2006, 37(6):882-896.
  • Hofstede G. The GLOBE debate: back to relevance. Journal of International Business Studies 2010, 41(8):1339-1446.
  • Hoskisson R.E., Hitt M.A., Wan W.P., Yiu D. Theory and research in strategic management: swings of a pendulum. Journal of Management 1999, 25(3):417-456.
  • Culture, Leadership and Organizations: The GLOBE Study of 62 Societies 2004, SAGE Publications Inc., London. R.J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, V. Gupta (Eds.).
  • House R., Javidan M., Dorfman P., Sully de Luque M. A failure of scholarship: response to George Graen's critique of GLOBE. Academy of Management Perspectives 2006, 20(4):102-114.
  • Hutzschenreuter T., Voll J.C. Performance effects of "added cultural distance" in the path of international expansion: the case of German multinational enterprises. Journal of International Business Studies 2008, 39:53-70.
  • Hutzschenreuter T., Voll J., Verbeke A. The impact of added cultural distance and cultural diversity on international expansion patterns: a Penrosean perspective. Journal of Management Studies 2011, 48(2):305-329.
  • Inglehart and Associates World Values Survey 1997, http://www.worldvaluesurvey.org/.
  • Javidan M., House R.J., Dorfman P.W., Hanges P.J., Sully de Luque M. Conceptualizing and measuring cultures and their consequences: a comparative review of GLOBE and Hofstede approaches. Journal of International Business Studies 2006, 37:897-914.
  • Jiang Y., Peng M.W. Are family ownership and control in large firms good, bad, or irrelevant?. Asia Pacific Journal of Management 2011, 28(1):15-39.
  • Kang Y., Jiang F. FDI location choice of Chinese multinationsls in East and Southeast Asia: traditional economic factors and institutional perspective. Journal of World Business 2012, 47(1):45-53.
  • Knudsen C. Theories of the firm, strategic management, and leadership. Resource-based and Evolutionary Theories of the Frim: Toward A Synthesis 1995, 179-217. Kluwer, Boston. C.A. Montgomery (Ed.).
  • Kogut B., Singh H. The effects of national culture on the choice of entry mode. Journal of International Business Studies 1988, 19(3):411-432.
  • Lambsdorff J.G. The Methodology of the Corruption Perceptions Index 2007 2007, Transparency Internation., Berlin. http://www.transparency.%20org/content/download/23965/358196.
  • Lee S.-H., Yamakawa Y., Peng M.W., Barney J.B. How do bankruptcy laws affects entrepreneurship development around the world?. Journal of Business Venturing 2011, 26(5):505-520.
  • Ma X., Tong T.W., Fitza M. How much does subnational regiona matter to foreign subsidiary performance?. Evidence from Fortune Global 500 Corporations' investments in China. Journal of International Business Studies 2013, 44(1):68-87.
  • Martin K.D., Cullen J.B., Johnson J.L., Parboteeah K.P. Deciding to bribe: a cross-level analysis of firm and home country influences on bribery activity. Academy of Management Journal 2007, 50(6):1401-1422.
  • Maseland R., Van Hoorn A. Explaining the negative correlation between values and practices: a note on the Hofstede-GLOBE debate. Journal of International Business Studies 2009, 40:527-532.
  • Meyer K.E., Estrin S., Bhaumik S.K., Peng M.W. Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal 2009, 30(1):61-80.
  • Meyer K.E., Sinani E. When and where does foreign direct investment generate positive spillovers? A meta-analysis. Journal of International Business Studies 2009, 40(7):1075-1094.
  • North D.C. Institutions, Institutional Change, and Economic Performance 1990, Harvard University Press, Cambridge, MA.
  • North D.C. Institutions. The Journal of Economic Perspectives 1991, 5(1):97-112.
  • Quer D., Claver E., Rienda L. Political risk, cultural distance, and outward foreign direct investment: empirical evidence from large Chinese firms. Asia Pacific Journal of Management 2012, 29(4):1089-1104.
  • Oh C.H., Oetzel J. Multinationals' response to major disasters: how does subsidiary investment vary in response to the type of disaster and the quality of country governance?. Strategic Management Journal 2011, 32(6):658-681.
  • Pajunen K. Institutions and inflows of foreign direct investment: a fuzzy-set analysis. Journal of International Business Studies 2008, 39(4):652-669.
  • Peng M.W. Towards an institution-based view of business strategy. Asia Pacific Journal of Management 2002, 19(2/3):251-267.
  • Peng M.W. Global Business 2009 Update 2009, South-Western Cengage Learning, Mason USA.
  • Peng M.W., Delios A. What determines the scope of the firm over time and around the world? An Asia Pacific perspective. Asia Pacific Journal of Management 2006, 23(4):385-405.
  • Peng M.W., Jiang Y. Institutions behind family ownership and control in large firms. Journal of Management Studies 2010, 47(2):253-273.
  • Peng M., Sun S., Pinkham B., Chen H. The institution-based view as a third leg for a strategy tripod. The Academy of Management Perspectives 2009, 23(3):63-81.
  • Peng M.W., Wang D.Y.L., Jiang Y. An institution-based view of international business strategy: a focus on emerging economies. Journal of International Business Studies 2008, 39(5):920-936.
  • Peng M.W., Yamakawa Y., Lee S.H. Bankruptcy laws and entrepreneur-friendliness. Entrepreneurship: Theory and Practice 2010, 34(3):517-530.
  • Peteraf M.A. The cornerstones of competitive advantage: a resource-based. Strategic Management Journal 1993, 14(3):179-191.
  • Porter M.E. Competitive Strategy 1980, The Free Press, New York.
  • Reus T.H., Lamont B.T. Double-edged sword of cultural distance in international acquisitions. Journal of International Business Studies 2009, 40(8):1298-1316.
  • Roberts P.W., Greenwood R. Integrating transaction cost and institutional theories: toward a constrained-efficiency framework for understanding organizational design adoption. Academy of Management Review 1997, 22(2):346-373.
  • Robertson C.J., Watson A. Corruption and change: the impact of foreign direct investment. Strategic Management Journal 2004, 25(4):385-396.
  • Fundamental Issues in Strategy: A Research Agenda 1994, Harvard Business School Press, Boston. R. Rumelt, D. Schendel, D. Teece (Eds.).
  • Santangelo G.D., Meyer K.E. Extending the internationalization process model: increases and decreases of MNE commitment in emerging economies. Journal of International Business Studies 2011, 42(7):894-909.
  • Schneider M.R., Schulze-Bentrop C., Paunescu M. Mapping the institutional capital of high-tech firms: a fuzzy-set analysis of capitalist variety and export performance. Journal of International Business Studies 2010, 41(2):246-266.
  • Schwartz S.H. Beyond individualism-collectivism: new cultural dimensions of values. Individualism and collectivism: Theory, method and applications 1994, 85-119. U. Kim, H.C. Triandis, C. Kagitcibasi, S.-C. Choi, G. Yoon (Eds.).
  • Shao R., Rupp D.E., Skarlicki D.P., Jones K.S. Employee justice across countries: a meta-analytic review. Journal of Management 2013, 39(1):263-301.
  • Scott W.R. Institutions and Organizations 1995, Sage, Thousand Oaks, CA.
  • Scott W.R. Institutions and Organizations: Ideas and Interest 2008, Sage, Thousand Oaks, CA. 3rd ed.
  • Smith P. When elephants fight, the grass gets trampled: the GLOBE and Hofstede projects. Journal of International Business Studies 2006, 37(6):915-921.
  • Spencer J., Gomez C. MNEs and corruption: the impact of national institutions and subsidiary strategy. Strategic Management Journal 2011, 32(3):280-300.
  • Stephan U., Uhlander L.M. Performance-based vs socially supportive culture: a cross-national study of descriptive norms and entrepreneurship. Journal of International Business Studies 2010, 41(8):1347-1364.
  • Suchman M.C. Managing legitimacy: strategic and institutional approaches. Academy of Management Review 1995, 20(3):571-610.
  • Trompenaars and Hampden Turner Ecological (cross-cultural) Database 1997, http://www.thtconsulting.com/.
  • Tung R.L., Verbeke A. Beyond Hofstede and GLOBE: improving the quality of cross-cultural research. Journal of International Business Studies 2010, 41(8):1259-1274.
  • Vaaler P.M., Schrage B.N. Residual state ownership, policy stability and financial performance following strategic decisions by privatizing telecoms. Journal of International Business Studies 2009, 40(4):621-641.
  • Van Essen M., Heugens P.P., Otten J., Van Oosterhout J. An institution-based view of executive compensation: a multilevel meta-analytic test. Journal of International Business Studies 2012, 43(4):396-423.
  • Venaik S., Brewer P. Avoiding uncertainty in Hofstede and GLOBE. Journal of International Business Studies 2010, 41(8):1294-1315.
  • Wan W.P. Country resource environments, firm capabilities, and corporate diversification strategies. Journal of Management Studies 2005, 42(1):161-182.
  • Wan W.P., Hoskisson R.E. Home country environments, corporate diversification strategies, and firm performance. Academy of Management Journal 2003, 46(1):27-45.
  • Wernerfelt B. A resource-based view of the firm. Strategic Management Journal 1984, 5(2):171-180.
  • Williamson O. Markets and Hierarchies: Analysis and Antitrust Implications: A Study in the Economics of Internal Organization 1975, University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
  • Williamson O. The Economic Institutions of Capitalism 1985, Free Press, New York.
  • Williamson O. Transaction costs economics and organization theory. The Handbook of Economic Sociology 1994, 77-107. Princeton University Press and Russell Sage Foundation, Princeton, NJ. N.J. Smelser, R. Swedberg (Eds.).
  • Williamson O. The institutions of governance. The American Economic Review 1998, 88(2):75-79.
  • Yu T., Subramaniam M., Canella A.A. Rivalry deterrence in international markets: contingencies governing the mutual forbearance hypothesis. Academy of Management Journal 2009, 52(1):127-147.
  • Zhu Y., Wittman X., Peng M.W. Institution-based barriers to innovation in SMEs in China. Asia Pacific Journal of Management 2012, 29(4):1131-1142.