Skip to main content

Convergence versus Divergence: Testing Varieties of Capitalism Perspective on the Globalization of Business Practices

  • Chapter
Institutional Impacts on Firm Internationalization

Abstract

The last decade has witnessed the emergence of a new and influential approach to the examination of international business that emphasizes the role of the so-called social system of production, incorporating such institutions as the educational system, the system of industrial relations, work organization and other socio-political factors contributing to the synergies between the associations, groups and strata that constitute modern industrial society (Hollingsworth and Boyer, 1997; Sabel and Zeitlin, 1997; Hall and Soskice, 2001).

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.

References

  • Aoki, M. (2001). Towards a Comparative Institutional Analysis. Cambridge, MA: MIT Press.

    Google Scholar 

  • Child, J., Faulkner, D. and Pitkethly, R. (2000). Foreign Direct Investment in the UK 1985–1994: The Impact on Domestic Management Practice, Journal of Management Studies, 37: 141–66.

    Google Scholar 

  • Costello, A. and Costello, T. (2004). Corporate Governance in Multinational Corporations, Midwest Academy of Management Proceedings 2004 Annual Conference ‘e-Motionalizing Management: The Challenge for Globalizing Organizations’, Minneapolis, MN.

    Google Scholar 

  • Crouch, C. and Streeck, W. (1997). Political Economy of Modern Capitalism: Mapping Convergence and Diversity. Sage: London.

    Google Scholar 

  • Croucher, R., Gooderham, P. and Parry, E. (2006). The Influences on Direct Communication in British and Danish Firms: Country, ‘Strategic HRM’ or Unionization? European Journal of Industrial Relations, 12: 267–86.

    Article  Google Scholar 

  • Deeg, R. and Jackson, G. (2007). The State of the Art: Towards a More Dynamic Theory of Capitalist Variety, Socio-Economic Review, 5: 149–79.

    Article  Google Scholar 

  • De Pelsmacker, P. and Janssens, W. (2007). Model for Fair Trade Buying Behaviour: The Role of Perceived Quantity and Quality of Information and of Product-Specific Attitudes, Journal of Business Ethics, 75: 361–80.

    Article  Google Scholar 

  • Dickmann, M. (2003). Implementing German HRM Abroad: Desired, Feasible, Successful? International Journal of Human Resource Management, 14: 265–83.

    Article  Google Scholar 

  • Dillman, D.A. (2000). Mail and Internet Surveys: The Tailored Design Method. 2nd Edition, John Wiley and Sons: New York.

    Google Scholar 

  • Dunning, J.H. and Bansal, S. (1997). The Cultural Sensitivity of the Eclectic Paradigm, Multinational Business Review, 5(1): 1–16.

    Google Scholar 

  • Farndale, E., Brewster, C. and Poutsma, E. (2008). Coordinated vs. Liberal Market HRM: The Impact of Institutionalization on Multinational Firms, The International Journal of Human Resource Management, 19: 2004–23.

    Article  Google Scholar 

  • Faulconbridge, J.R. (2008). Negotiating Cultures of Work in Transnational Law Firms, Journal of Economic Geography, 8: 497–517.

    Article  Google Scholar 

  • Fenton-O’Creevy, M., Gooderham, P. and Nordhaug, O. (2008). Human Resource Management in US Subsidiaries in Europe and Australia: Centralisation or Autonomy? Journal of International Business Studies, 39: 151–66.

    Article  Google Scholar 

  • Ferner, A. and Varul, M. (2000). Vanguard Subsidiaries and the Diffusion of New Practices: A Case Study of German Multinationals, British Journal of Industrial Relations, 38: 115–40.

    Article  Google Scholar 

  • Fioretos, O. (2001). The Domestic Sources of Multilateral Preferences: Varieties of Capitalism in the European Community. In Hall, P.A. and Soskice, D. (Eds.) Varieties of Capitalism. Cambridge, MA: Cambridge University Press: 213–44.

    Chapter  Google Scholar 

  • Fluck, Z. and Mayer, C. (2005). Race to the Top or Bottom? Corporate Governance, Freedom of Reincorporation and Competition in Law, Annals of Finance, 1: 349–78.

    Article  Google Scholar 

  • Gaur, A., Delios, A. and Singh, K. (2007). Institutional Environments, Staffing Strategies, and Subsidiary Performance, Journal of Management, 33: 611–36.

    Article  Google Scholar 

  • Geppert, M. (2005). Competence Development and Learning in British and German Subsidiaries of MNCs: Why and How Institutions Still Matter, Personnel Review, 34: 155–77.

    Article  Google Scholar 

  • Geppert, M. and Matten, D. (2006). Institutional Influences on Manufacturing Organization in Multinational Corporations: The ‘Cherrypicking’ Approach, Organisation Studies, 27: 491–515.

    Article  Google Scholar 

  • Geppert, M., Matten, D. and Williams, K. (2003). Change Management in MNCs: How Global Convergence Intertwines with National Diversities, Human Relations, 56: 807–38.

    Article  Google Scholar 

  • Grimshaw, D. and Miozzo, M. (2006). Institutional Effects on the IT Outsourcing Market: Analysing Clients, Suppliers and Staff Transfer in Germany and the UK, Organization Studies, 27: 1229–259.

    Article  Google Scholar 

  • Hall, P.A. (1986). Governing the Economy: The Politics of State Intervention in Britain and France. Oxford: Oxford University Press.

    Google Scholar 

  • Hall, P.A. and Soskice, D. (2001) Varieties of Capitalism. The Institutional Foundations of Comparative Advantage. Cambridge, MA: Cambridge University Press.

    Book  Google Scholar 

  • Hiscox, M.J. and Rickard, S.J. (2002). Birds of a Different Feather? Varieties of Capitalism, Factor Specificity, and Interindustry Labour Movements, Typescript, Harvard University.

    Google Scholar 

  • Hollingsworth, J.R. and Boyer, R. (1997). Contemporary Capitalism: The Embeddedness of Institutions. New York: Cambridge University Press.

    Book  Google Scholar 

  • Höpner, M. (2005). What Connects Industrial Relations and Corporate Governance? Explaining Institutional Complementarity, Socio-Economic Review, 3: 332–57.

    Google Scholar 

  • Jackson, G. and Deeg, R. (2008). From Comparing Capitalisms to the Politics of Institutional Change, Review of International Political Economy, 15: 680–709.

    Article  Google Scholar 

  • Kenworthy, L. (2006). Institutional Coherence and Macroeconomic Performance, Socio-Economic Review, 4: 69–91.

    Article  Google Scholar 

  • Kiel, G.C., Hendry, K.P. and Nicholson G.J. (2006). Corporate Governance Options for the Local Subsidiaries of Multinational Enterprises, Corporate Governance: An International Review, 14: 568–76.

    Article  Google Scholar 

  • Kostova, T. and Roth, K. (2002). Adoption of an Organizational Practice by Subsidiaries of Multinational Corporations: Institutional and Relational Effects, The Academy of Management Journal, 45: 215–33.

    Article  Google Scholar 

  • Kristensen, P.H. and Zeitlin, J. (2005). Local Players in Global Games: The Strategic Constitution of a Multinational Corporation. Oxford: Oxford University Press.

    Google Scholar 

  • Kuemmerle, W. (1999). The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation, Journal of International Business Studies, 30: 1–24.

    Article  Google Scholar 

  • Lane, C. (1995). Industry and Society in Europe. Stability and Change in Britain, Germany and France. Aldershot: Edward Elgar.

    Google Scholar 

  • Lane, C. (2000). Globalization and the German Model of Capitalism — Erosion or Survival? British Journal of Sociology, 51: 207–34.

    Article  Google Scholar 

  • Luo, Y. (2006). Political Behaviour, Social Responsibility, and Perceived Corruption: A Structuration Perspective, Journal of International Business Studies, 37: 747–66.

    Article  Google Scholar 

  • Moore, F. (2006). Strategy, Power and Negotiation: Social Control and Expatriate Managers in a German Multinational Corporation, International Journal of Human Resource Management, 17: 399–413.

    Article  Google Scholar 

  • Rigby, M., Smith, R. and Brewster, C. (2004). The Changing Impact and Strength of the Labour Movement in Europe. In Harcourt, M. and Wood, G. (Eds.) Trade Unions and Democracy: Strategies and Perspectives. Manchester: Manchester University Press: 132–58.

    Google Scholar 

  • Sabel, C. and Zeitlin, J. (1997). Stories, Strategies, Structures. In Sabel, C. and Zeitlin, J. (Eds.) World of Possibilities. Flexibility and Mass Production in Western Industrialization. Cambridge, MA: Cambridge University Press.

    Chapter  Google Scholar 

  • Schmidt, V.A. (2002). The Futures of European Capitalism. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Streeck, W. (1999). Competitive Solidarity: Rethinking the ‘European Social Model’, MPIfG Working Chapter 99/8.

    Google Scholar 

  • Thatcher, M. (2004). Varieties of Capitalism in an Internationalized World: Domestic Institutional Change in European Telecommunications, Comparative Political Studies, 37: 751–80.

    Article  Google Scholar 

  • Tüselmann, H.J., McDonald, F. and Thorpe, R. (2006). The Emerging Approach to Employee Relations in German Overseas Affiliates: A Role Model for International Operation? Journal of World Business, 41: 66–80.

    Article  Google Scholar 

  • Von Glinow, M.A., Drost, E.A. and Teagarden M.B. (2002). Converging on IHRM Best Practices: Lessons Learned from a Globally Distributed Consortium on Theory and Practice, Human Resource Management, 41: 123–40.

    Article  Google Scholar 

  • Whitley, R. (1998). Internationalization and Varieties of Capitalism: The Limited Effects of Cross-National Coordination of Economic Activities on the Nature of Business Systems, Review of International Political Economy, 5: 445–81.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2015 Andrei Kuznetsov and Marcus Jacob

About this chapter

Cite this chapter

Kuznetsov, A., Jacob, M. (2015). Convergence versus Divergence: Testing Varieties of Capitalism Perspective on the Globalization of Business Practices. In: Marinova, S. (eds) Institutional Impacts on Firm Internationalization. Palgrave Macmillan, London. https://doi.org/10.1057/9781137446350_2

Download citation

Publish with us

Policies and ethics