Mapping the Business Systems of 61 Major Economies: A Taxonomy and Implications for Varieties of Capitalism and Business Systems Research

Socio-Economic Review, 16(1), 5-38, 2018

34 Pages Posted: 15 Sep 2015 Last revised: 21 Mar 2018

See all articles by Michael A. Witt

Michael A. Witt

INSEAD; Harvard University, Reischauer Institute

Luiz Ricardo Kabbach-Castro

Universidade de São Paulo (USP); Universidad de Navarra

Kenneth Amaeshi

University of Edinburgh Business School; Cranfield University - School of Management

Sami Mahroum

INSEAD Abu Dhabi Campus

Dorothee Bohle

European University Institute

Lawrence Saez

University of London - School of Oriental and African Studies (SOAS)

Date Written: February 1, 2018

Abstract

Efforts to build a universal theory of the world’s business systems require empirical grounding in an understanding of the variety that need explaining. To support such theorizing, we analyzed the institutional structures of 61 major economies, accounting for 93.5% of 2013 world GDP at purchasing power parity. We found nine main types of business systems: Highly Coordinated, Coordinated Market, Liberal Market, European Peripheral, Advanced Emerging, Advanced City, Arab Oil-Based, Emerging, and Socialist Economies. Our findings illustrate the need to go beyond the Varieties of Capitalism and Business Systems frameworks; provide empirical support for the CME versus LME dichotomy for part of the OECD; identify some of the business systems proposed recently as sub-types of larger clusters; indicate that institutional diversity may increase with development level; and cast doubt on the notions of state-led and family-led capitalism as types of business systems. Our discussion further suggests numerous avenues for theory development and empirical research.

Keywords: Varieties of Capitalism, Africa, Asia, Central and Eastern Europe, Middle East, South America

JEL Classification: P1, P2, P50

Suggested Citation

Witt, Michael A. and Kabbach-Castro, Luiz Ricardo and Amaeshi, Kenneth and Mahroum, Sami and Bohle, Dorothee and Saez, Lawrence, Mapping the Business Systems of 61 Major Economies: A Taxonomy and Implications for Varieties of Capitalism and Business Systems Research (February 1, 2018). Socio-Economic Review, 16(1), 5-38, 2018. Available at SSRN: https://ssrn.com/abstract=2660126 or http://dx.doi.org/10.2139/ssrn.2660126

Michael A. Witt (Contact Author)

INSEAD ( email )

1 Ayer Rajah Avenue
Singapore, 138676
Singapore

HOME PAGE: http://faculty.insead.edu/michael-witt/research

Harvard University, Reischauer Institute

1730 Cambridge Street
Cambridge, MA 02138
United States

Luiz Ricardo Kabbach-Castro

Universidade de São Paulo (USP) ( email )

Brazil
+551633738642 (Phone)
+551633739425 (Fax)

HOME PAGE: http://www.ceef.prod.eesc.usp.br

Universidad de Navarra ( email )

Campus Universitario
Pamplona, Navarra 31009
Spain
683623704 (Phone)

Kenneth Amaeshi

University of Edinburgh Business School ( email )

29 Buccleuch Place
Central Area
Edinburgh, Scotland EH8 9JS
United Kingdom

HOME PAGE: http://https://www.business-school.ed.ac.uk/about/people/738/Kenneth/Amaeshi

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

Sami Mahroum

INSEAD Abu Dhabi Campus ( email )

P.O. Box 48049
Abu Dhabi
United Arab Emirates

Dorothee Bohle

European University Institute ( email )

Via dei Roccettini
San Domenico di Fiesole, 50014
Italy

Lawrence Saez

University of London - School of Oriental and African Studies (SOAS) ( email )

Thornhaugh Street
Russell Square: College Buildings 541
London, WC1H 0XG
United Kingdom

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