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Abstract:
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Three varieties of institutionalism currently dominate International Business
studies: new institutional economics, new organizational institutionalism, and
comparative historical institutionalism. Yet currently applied measures of
institutional country distance predominantly build on the thought of the first two
strands of institutionalism. This paper sets out to address this underrepresentation
of comparative historical institutional thought in currently
available measures of institutional distance. Building on Whitley’s business
systems framework, a measure of institutional distance is developed and validated
which captures intrinsic, substantive institutional differences in economic
organization, rather than differences in institutional effectiveness. The results of
the two-stage cluster analysis used to validate the selected indicators closely
approximate the business systems typology, which is both indicative of the validity
of this measure and of the distinctiveness of the business system types that make
up the business system framework. |
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