Institutional Theory Perspectives on Emerging Markets

2018 ◽  
pp. 98-126 ◽  
Author(s):  
Tatiana Kostova ◽  
Valentina Marano
Keyword(s):  
Emerging Markets ◽  
Institutional Economics ◽  
Institutional Context ◽  
Business Environment ◽  
Future Research ◽  
Host Countries ◽  
Institutional Perspective ◽  
Organizational Institutionalism ◽  
Comparative Institutionalism ◽  
National Business

This chapter presents a critical review of the applications of the institutional perspective in research focused on emerging markets. The review is organized along (a) three distinct institutional strands (i.e., institutional economics, organizational institutionalism, and comparative institutionalism), and (b) three domain areas regarding how each perspective has examined the evolution of the national business environment, the interface between the firm and the institutional context in its home and host countries, and the unique strategies and ways of organizing and managing of firms operating in emerging markets. The chapter concludes with several ideas about promising opportunities for future research on emerging markets in the institutional tradition.

scholarly journals An exposition of resource capabilities for SMEs in the emerging markets

2014 ◽  
Vol 17 (3) ◽  
pp. 310-318 ◽  
Author(s):  
Ritam Garg ◽  
Kalyan K De
Keyword(s):  
Emerging Markets ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Core Competency ◽  
Business Environment ◽  
Growth Potential ◽  
Future Research ◽  
Resource Based View ◽  
Competitive Edge ◽  
Conceptual Clarity

Emerging markets’ small and medium sized enterprises (SMEs), despite having enormous growth potential and significance in the economy, have not been able to harness the advantages of internationalisation and subsequently have fallen short in facing the challenges of globalised competition. The purpose of this study was to review and explore the importance of the resource capabilities, building on the literature from the resource based view (RBV), (core) competency and dynamic capabilities theory, as the main rationale behind their significance in the SME internationalisation. This study intends to provide conceptual clarity about the resource capabilities and their importance in providing the SMEs in the emerging economies, the competitive edge to sustain themselves in today’s business environment. The study concludes with an agenda for future research.

scholarly journals Internationalization of state-owned enterprises from emerging markets: Overview of theoretical approaches

2020 ◽  
Vol 19 (2) ◽  
pp. 227-255
Author(s):  
Daria S. Klishevich ◽  
◽  
Andrey Yu. Panibratov ◽  
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Emerging Market ◽  
State Ownership ◽  
Research Field ◽  
Future Research ◽  
Institutional Perspective ◽  
Theoretical Approaches ◽  
Emerging Market Countries ◽  
International Strategies

The article presents the analysis of the theoretical and empirical research on the phenomenon of the internationalization of state-owned enterprises from emerging market countries. Contemporary internationalized state-owned enterprises are far from the uncompetitive and ineffective firms of the 20th century that mostly operated domestically and give examples of truly exciting international strategies. However the question stays open, namely how exactly state ownership shapes their international strategies. The existing studies are vast and lack systematization, and the purpose of this article is to analyze the most widely used theoretical approaches that investigate internationalization of emerging markets of stateowned enterprises. The most popular theoretical approach to study the internationalization of emerging markets of state-owned enterprises is the institutional perspective that studies how the interplay of state ownership of companies and institutional environment shapes their international strategies. Nevertheless, the synergy of theoretical approaches is needed in order to extend knowledge on the internationalization of the state-owned enterprises. Examples of such a synergy are presented in this paper. It also offers prospects for future research and further topics to study. Analysis of theoretical approaches that study internationalization of emerging markets of state-owned enterprises helps map the research field and show where it is moving. The paper has value for both academia and practitioners that deal with the global expansion of state-owned enterprises from emerging markets.

Forging a comparative institutional advantage in Argentina: Implications for theory and praxis

2011 ◽  
Vol 64 (4) ◽  
pp. 553-572 ◽  
Author(s):  
Daniel Friel
Keyword(s):  
Latin America ◽  
Emerging Markets ◽  
Human Resource ◽  
International Business ◽  
Institutional Context ◽  
Varieties Of Capitalism ◽  
Future Research ◽  
Industrial District ◽  
High Quality ◽  
Large Company

This article argues that the incorporation of a revised version of the varieties of capitalism approach into international business literature and institution-based theory in strategy would enable scholars and practitioners to improve their understanding of how individual institutions and combinations thereof provide a basis for developing human resource practices suited to emerging markets. It elaborates on the varieties of capitalism approach by coining the term recessive institution to describe how firms draw on latent institutions to pursue policies not in accord with the dominant institutional context in which they operate. This article draws on the varieties of capitalism approach for Latin America to demonstrate how an industrial district and a large company in Argentina formed a comparative institutional advantage for producing mid-range, high quality products by using recessive institutions. It concludes by highlighting this article’s implications for human resource scholars and executives while also suggesting avenues for future research.

scholarly journals Developing and deploying marketing agility in an emerging economy: the case of Blue Skies

2019 ◽  
Vol 36 (2) ◽  
pp. 190-212 ◽  
Author(s):  
Collins Osei ◽  
Joseph Amankwah-Amoah ◽  
Zaheer Khan ◽  
Maktoba Omar ◽  
Mavis Gutu
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
International Marketing ◽  
Multinational Enterprise ◽  
Emerging Economy ◽  
Business Environment ◽  
Future Research ◽  
Content Type ◽  
Building Relationships ◽  
Organisational Agility

PurposeIn almost every large business, there is a growing recognition of the importance of organisational agility in improving their marketing responsiveness and business survival. However, limited insights have been offered by scholars on multinational enterprises and their marketing agility in emerging markets context. The purpose of this paper is to examine the various manifestations of agility and the various strategies adopted to sustain agility by an emerging economy multinational enterprise (EMNE) which started in the late 1990s as a small firm operating within the fresh fruit and juice industry in Africa.Design/methodology/approachThe authors utilised empirical qualitative data from an emerging African economy to develop a three-stage model of how agility manifests overtime.FindingsThe authors find that successful development and deployment of international marketing agility strategy adopted by an EMNE from emerging markets hinge on building relationships, being socially responsible and being innovative in standardisation and adaptation in response to, and in anticipation of, the rapidly changing business environment.Research limitations/implicationsThis research is based on data from one organisation. Future research can consider using multiple cases from different countries to further understand marketing agility in emerging markets and when such firms internalise into developed markets.Originality/valueThis paper extends research on standardisation/adaptation debate and research on agility, to address the gap on international marketing agility. Hitherto, there was no significant research on marketing agility in emerging markets which focused on highly perishable products such as fruits. This research provides unique insight into how marketing agility could be developed, deployed and sustained in emerging African markets.

Consumer Behavior in Emerging Markets

2018 ◽  
pp. 218-240 ◽  
Author(s):  
Raquel Castaño ◽  
David Flores
Keyword(s):  
Consumer Behavior ◽  
Emerging Markets ◽  
Emerging Market ◽  
High Income ◽  
Future Research ◽  
Psychological Processes ◽  
Developed Markets ◽  
Contextual Characteristics ◽  
Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

scholarly journals Corporate headquarters in the twenty-first century: an organization design perspective

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Sven Kunisch ◽  
Markus Menz ◽  
David Collis
Keyword(s):  
Twentieth Century ◽  
Organization Design ◽  
Business Environment ◽  
First Century ◽  
Future Research ◽  
Corporate Headquarters ◽  
Special Collection ◽  
Design Perspective ◽  
Twenty First Century

Abstract The corporate headquarters (CHQ) of the multi-business enterprise, which emerged as the dominant organizational form for the conduct of business in the twentieth century, has attracted considerable scholarly attention. As the business environment undergoes a fundamental transition in the twenty-first century, we believe that understanding the evolving role of the CHQ from an organization design perspective will offer unique insights into the nature of business activity in the future. The purpose of this article, in keeping with the theme of the Journal of Organization Design Special Collection, is thus to invigorate research into the CHQ. We begin by explicating four canonical questions related to the design of the CHQ. We then survey fundamental changes in the business environment occurring in the twenty-first century, and discuss their potential implications for CHQ design. When suitable here we also refer to the contributions published in our Special Collection. Finally, we put forward recommendations for advancements and new directions for future research to foster a deeper and broader understanding of the topic. We believe that we are on the cusp of a change in the CHQ as radical as that which saw its initial emergence in the late nineteenth/early twentieth century. Exactly what form that change will take remains for practitioners and researchers to inform.

scholarly journals Leveraging CSR for Sustainability: Assessing Performance Implications of Sustainability Reporting in a National Business System

2021 ◽  
Vol 13 (11) ◽  
pp. 5987
Author(s):  
Labrini Sideri
Keyword(s):  
Sustainable Development ◽  
Banking Industry ◽  
Sustainability Reporting ◽  
Future Research ◽  
Sustainable Development Goal ◽  
Development Goal ◽  
Sustainable Solutions ◽  
Agenda 2030 ◽  
Business System ◽  
National Business

In the light of Agenda 2030 awareness of sustainability is steadily growing all over the world. Devastating phenomena like pandemics (Sustainable Development Goal 3 (SDGs—Agenda 2030)), poverty (Sustainable Development Goal 1 (SDGs—Agenda 2030)) as well as climate change (Sustainable Development Goal 13 (SDGs—Agenda 2030)) threaten humanity, calling for more sustainable solutions. Although economic growth (Sustainable Development Goal 8 (SDGs—Agenda 2030)) is one of the principal goals for a sustainable future, little research has been devoted to the interface of corporate social responsibility (CSR) and sustainability and their contribution to the financial sector, in view of sustainable banking. Even fewer are the studies concerning sustainable banking in Greece. This paper attempts a comparative overview of sustainability integration into businesses, focusing on the banking industry. The current theoretical analysis initially provides an extended review of the CSR and sustainability concepts, which is followed by a comprehensive analysis of non-financial disclosures (NFDs) and their business value, providing some evidence from Greece. The following sections refer to the performance implications and sustainability integration in the banking industry. Eventually, sustainable banking seems to enhance banking performance in a national business system. This is a very important deduction for sustainability to be both the cause and effect of corporate banking. Along with the discussion, some avenues for future research are highlighted.

scholarly journals Purpose in the For-Profit Firm: A Review and Framework for Management Research

2021 ◽  
pp. 014920632110064
Author(s):  
Gerard George ◽  
Martine R. Haas ◽  
Anita M. McGahan ◽  
Simon J. D. Schillebeeckx ◽  
Paul Tracey
Keyword(s):  
Stock Market ◽  
Employee Satisfaction ◽  
Institutional Context ◽  
Organizational Outcomes ◽  
Review Literature ◽  
Future Research ◽  
Management Research ◽  
For Profit ◽  
Stock Market Performance ◽  
Pluralistic Approach

Purpose is a concept often used in managerial communities to signal and define a firm’s benevolent and pluralistic approach to its stakeholders beyond its focus on shareholders. While some evidence has linked purpose to positive organizational outcomes such as growth, employee satisfaction, innovation, and superior stock market performance, the definition and application of purpose in management research has been varied and frequently ambiguous. We review literature streams that invoke purpose in the for-profit firm and propose a unifying definition. Next, we develop a framework to study purpose that decouples its framing and formalization within firms from its realization, thus helping to avoid conflation of the presence of purpose with positive organizational outcomes. The framework also highlights internal and external drivers that shape the framing of purpose as well as the influence of the institutional context on its adoption and effectiveness. Finally, we provide a rich agenda for future research on purpose.

Governing the Environment: the Intitutional Economics Approach

2009 ◽  
pp. 61-86
Author(s):  
Arild Vatn
Keyword(s):  
Transaction Costs ◽  
Environmental Governance ◽  
Institutional Economics ◽  
Specific Area ◽  
New Institutional Economics ◽  
Neoclassical Economics ◽  
Institutional Perspective ◽  
Institutional Structures ◽  
Plural Rationalities ◽  
Jel Classifications

- Analyzing environmental governance implies foremost to analyze institutional structures and their implications. In doing so, the present paper utilizes insights primarily from the tradition of classical institutional economics. The paper is divided in three. In the first part I describe the main features of the classical position and compare it briefly with that of neoclassical economics and the tradition of new institutional economics. In the second part I clarify what is considered the main aspects of governance as seen from an institutional perspective. In part three I move to the more specific area of environmental governance. The concept of resource regimes is defined. Moreover I analyze how different regimes influence which environmental problems appear and how they can be treated. I discuss how institutions influence the formation and articulation of knowledge and values, how they form and protect interests, how they influence the level of transaction costs and hence the possibilities for coordination, and finally how they form the motivations underlying human choices in concrete contexts. Given that all these variables are shown to be endogenous to the institutional system, the use of comparative analysis in the assessment of various governance options is emphasized.Keywords: classical institutional economics, interdependence, resource regimes, value articulation, interest protection, transaction costs, plural rationalities.JEL classifications: B52; Q50; D02; D70.

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