Clarifying the Relationships between Institutions and Global Strategy

Cuervo-Cazurra, A., Mudambi, R., & Pedersen, T. 2019. Clarifying the relationships between institutions and global strategy. Global Strategy Journal, 9 (2): 151-175.

22 Pages Posted: 6 Jun 2019

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Ram Mudambi

Temple University - Department of Strategic Management

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization

Date Written: May 17, 2019

Abstract

We review the relationships between institutions and global strategy and explain several clarifications for future research. First, studies need to clarify the standard used to assess quality in institutional dimensions they research rather than let readers assess them from the measures. Second, analyses need to specify the theoretical approach used, which may be based on the paradigm from a single discipline (economics, sociology, politics, psychology) or the integration of underlying disciplines, as often seen in management. This must form the basis of a consistent set of assumptions rather than a potpourri of arguments from incompatible logics. Third, investigations need to clarify the direction of relationship and mechanisms. On the one hand, studies on the impact of institutions on strategy should clarify the institutional influences used (adapt, appeal, avoid). On the other hand, research on the effect of strategy on institutional change should clarify the institutional strategies (inform, influence, incentivize) and institutional spillovers (compete, command, copy) by which firms change institutions.

Keywords: Institutions, global strategy, control, institutional economics, neo-institutionalism, interest groups, culture, institutional view

JEL Classification: F23, M16, M21

Suggested Citation

Cuervo-Cazurra, Alvaro and Mudambi, Ram and Pedersen, Torben, Clarifying the Relationships between Institutions and Global Strategy (May 17, 2019). Cuervo-Cazurra, A., Mudambi, R., & Pedersen, T. 2019. Clarifying the relationships between institutions and global strategy. Global Strategy Journal, 9 (2): 151-175.. Available at SSRN: https://ssrn.com/abstract=3390597

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Ram Mudambi

Temple University - Department of Strategic Management ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-2099 (Phone)
215-204-8029 (Fax)

HOME PAGE: http://sbm.temple.edu/~rmudambi/index.html

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/tp

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