Skip to main content
  • 594 Accesses

Abstract

Institutional theory (for analysis of the roots of institutional theory, see Bill and Hardgrave, 1981; Hodgson, 1994) is one of the most important perspectives in international business. Hence, it has attracted the attention of scholars in the last few years (Doh et al., 2012; Tihanyi et al., 2012; Wood and Demirbag, 2012). It has become so prevalent that it is sometimes difficult to delineate what is not an institution or what remains non-institutionalized in a home- or host-country context. Rightly so, institutional definitions differ within diverse theoretical streams of literature (Hotho and Pedersen, 2012). There are three quite different theoretical interpretations of institutions that in our view do not compete with each other, but there is quite a high level of congruity, complementarity and compatibility among them in terms of the core of their argument in relation to institutions being rules and belief systems that should be followed or established stable and resilient social structures which define and enforce the guiding principles for social behaviour. While North (1990) classifies institutions into formal (laws, regulations, rules) and informal (norms, practices, values), Scott (1995, 2008) categorizes the institutional pillars into regulative (laws, regulations, rules), normative (norms, practices) and cultural-cognitive (culture, ethics, morality, values), and Whitley (1992, 2010) labels the key institutions as proximate (laws, regulations, state structures, policies, labour system, financial system) and background (norms governing relationships, ethics, values).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  • Bill, James A. and Hardgrave, Robert L., Jr. (1981). Comparative Politics: The Quest for Theory. Washington, DC: Bell & Howell.

    Google Scholar 

  • DiMaggio, P. and Powell, W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, American Sociological Review, 48: 147–60.

    Article  Google Scholar 

  • Doh, J., Lawton, T. and Rajwani, T. (2012). Advancing Nonmarket Strategy Research: Institutional Perspectives in a Changing World, Academy of Management Perspectives, 26: 22–39.

    Article  Google Scholar 

  • Hennart, J.-F. (2012). Emerging Market Multinationals and the Theory of the Multinational Enterprise, Global Strategy Journal, 2(3): 168–87.

    Article  Google Scholar 

  • Hodgson, G. (1994). The Return of Institutional Economics. In Smelser, N. and Swedberg, R. (Eds.) The Handbook of Economic Sociology. Princeton and New York: Princeton University Press and Russell Sage Foundation: 58–76.

    Google Scholar 

  • Hotho, J.J. and Pedersen, T. (2012). Beyond the ‘Rules of the Game’: Three Institutional Approaches and How They Matter for International Business. In Wood, G. and Demirbag, M. (Eds.) Handbook of Institutional Approaches to International Business. Cheltenham: Edward Elgar: 236–73.

    Google Scholar 

  • Huang, Y. and Sternquist, B. (2007). Retailers’ Foreign Market Entry Decisions: An Institutional Perspective, International Business Review, 16: 613–29.

    Article  Google Scholar 

  • North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge, MA: Cambridge University Press.

    Book  Google Scholar 

  • Scott, R. (1995). Institutions and Organizations. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Scott, W.R. (2008). Institutions and Organisations: Ideas and Interests. 3rd Edition, Thousand Oaks, CA: Sage.

    Google Scholar 

  • Tihanyi, L., Devinney, T. and Pedersen, T. (Eds.) (2012). Institutional Theory in International Business and Management. Advances in International Management, 25. Bingley: Emerald.

    Google Scholar 

  • Whitley, R. (1992). The Social Construction of Organizations and Markets: The Comparative Analysis of Business Recipes. In Reed, M. and Hughes, M. (Eds.) Rethinking Organizations: New Directions in Organization Theory and Analysis. Newbury Park, CA: Sage: 120–43.

    Google Scholar 

  • Whitley, R. (2010). The Institutional Construction of Firms. In Morgan, G., Campbell, J.L., Crouch, C., Pedersen, O.K. and Whitley, R. (Eds.) The Oxford Handbook of Comparative Institutional Analysis. Oxford: Oxford University Press: 422–53.

    Google Scholar 

  • Wood, G. and Demirbag, M. (2012). Handbook of Institutional Approaches to International Business. Cheltenham: Edward Elgar.

    Book  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2015 Svetla Marinova

About this chapter

Cite this chapter

Marinova, S. (2015). Institutions and International Business. In: Marinova, S. (eds) Institutional Impacts on Firm Internationalization. Palgrave Macmillan, London. https://doi.org/10.1057/9781137446350_1

Download citation

Publish with us

Policies and ethics