National Business System

Topics: Sociology, Economics, Institution Pages: 30 (10666 words) Published: March 16, 2013
ARTICLE IN PRESS

Management
S C A N D I N AV I A N J O U R N A L O F

Scand. J. Mgmt. 23 (2007) 127–145 www.elsevier.com/locate/scaman

National business systems research: Progress and prospects
Glenn MorganÃ
Warwick Business School, University of Warwick, Coventry, UK

Abstract The paper provides an overview of the development of the national business systems approach to the study of organizations. The first section outlines the approach taken to understanding national business systems and their relationship to organizations. It notes the creative tension which existed within the approach between ideal types of national systems and specific empirical studies which were more actor centred and concerned with change and process in institutions and organizations. The second section focuses on a series of concepts and debates which emerged from the growing interdisciplinary nature of the debate on comparative capitalisms. These debates have shifted the focus of discussion away from typologies and more towards issues of change and process and the interaction of national contexts and international processes. The third section illustrates this new focus through analysing the contribution of the national business systems approach to the study of multinationals and international institutions. It argues that the national business systems approach is central to understanding the interaction between organizations, national contexts and international flows of capital, labour, technology and knowledge and international rule systems for coordinating these flows. r 2007 Elsevier Ltd. All rights reserved. Keywords: National business systems; Institutional change; Multinationals; International rules

1. Introduction In the 1990s, the business systems approach broke with the still dominant universalistic and contingency models of organizations which emphasized issues of size, technology and ÃTel.: +44 2476522580.

E-mail address: glenn.morgan@warwick.ac.uk. 0956-5221/$ - see front matter r 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.scaman.2007.02.008

ARTICLE IN PRESS
128 G. Morgan / Scand. J. Mgmt. 23 (2007) 127–145

market structure as determinants of organization structure and strategy. Instead it argued for the centrality of the distinctive institutional context in which organizations were located (Whitley, 2003). It was the institutional context, primarily though not necessarily national, which became the key for understanding the organization. As a consequence, it was argued that the study of organization and management had to become thoroughly imbued with a comparative institutional perspective, reflected both in the construction of explanations and in the methodology of the discipline. The purpose of this review paper is to examine the original contributions of the national business systems approach, to identify recent developments and to suggest areas where this approach is currently making a significant mark. The paper is organized in the following sections. The first section presents the basic model of how national institutional settings affect organizations focusing particularly on the early work of Whitley and others in developing a comparative approach. It seeks to clarify what that approach set out to achieve and therefore where its selfimposed limits and its creative tensions could be identified. The second section argues that what is now being developed in order to overcome these problems is a shared interdisciplinary vocabulary and conceptual framework for analysing actors, institutional change and processes of co-dependency and co-construction in a globalizing world. The third section suggests some key areas in which this reformulation is contributing to a new informed understanding of organizations between national contexts and international flows. 2. National business systems: the basic model The national business systems approach begins from the idea that different forms of capitalism...

References: Albert, M. (1993). Capitalism against capitalism. New York: Four Walls Eight Windows Publishing. Almond, P., & Ferner, A. (2006). American multinationals in Europe: Managing employment relations across national borders. Oxford: Oxford University Press. Amable, B. (2003). The diversity of modern capitalism. Oxford: Oxford University Press. Becker-Ritterspach, F. (2006). The hybridization of local MNE production systems. Ridderkerk: Labyriuinth Publications. ´ Belanger, J., Berggren, C., Bjorkman, T., & Kohler, C. (Eds.). (1999). Being local worldwide: ABB and the ¨ ¨ challenge of global management. Ithaca, NY and London: Cornell University Press. Bendix, R. (1956). Work and authority in industry. Berkeley: University of California Press. Berger, S., & Dore, R. (Eds.). (1996). National diversity and global capitalism. Ithaca, NY: Cornell University Press. Botzem, S., & Quack, S. (2006). Contested rules and shifting boundaries: International standard setting in accounting. In M.-L. Djelic, & K. Sahlin Andersson (Eds.), Transnational governance (pp. 266–286). Cambridge: Cambridge University Press. Boyer, R., & Drache, D. (Eds.). (1996). States against markets: The limits of globalization. London: Routledge. Campbell, J., Hall, J. A., & Pedersen, O. K. (2005). National Identity and the varieties of capitalism: The Danish experience. Montreal: McGill-Queen’s University Press. Crouch, C. (1993). Industrial relations and European state traditions. Oxford: Clarendon Paperbacks. Crouch, C. (2005). Capitalist diversity and change. Oxford: Oxford University Press. Crouch, C., & Streeck, W. (1997). Political economy of modern capitalism: Mapping convergence and diversity. London: Sage. Deeg, R. (2005). Path dependency, institutional complementarities and change in national business systems. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms? Internationalisation, institutional change and systems of economic organization (pp. 21–52). Oxford: Oxford University Press. Djelic, M-L., & Quack, S. (Eds.). (2003). Globalization and institutions. Cheltenham: Edward Elgar. Djelic, M.-L., & Quack, S. (2005a). Rethinking path dependency: The crooked path of institutional change in post-war Germany. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms?
ARTICLE IN PRESS
G. Morgan / Scand. J. Mgmt. 23 (2007) 127–145 143 Internationalisation, institutional change and systems of economic organization (pp. 137–166). Oxford: Oxford University Press. Djelic, M.-L., & Quack, S. (2005b). Adaptation, recombination and reinforcement: The story of antitrust and competition law in Germany and Europe. In W. Streeck, & K. Thelen (Eds.), Beyond continuity: Institutional change in advanced political economies (pp. 255–281). Oxford: Oxford University Press. Djelic, M. -L., & Sahlin Andersson, K. (Eds.). (2006). Transnational governance. Cambridge: Cambridge University Press. Dobbin, F. (Ed.). (2004). The new economic sociology. Princeton, NJ: Princeton University Press. Edwards, T., Almond, P., Colling, T., & Ferner, A. (2005). Reverse diffusion in US multinationals: Barriers from the American business system. Journal of Management Studies, 42(4), 1261–1286. Ferner, A. (1997). Country of origin effects and HRM in multinational companies. Human Resource Management Journal, 7(1), 19–37. Fligstein, N. (2001). The architecture of markets. Princeton, NJ.: Princeton University Press. Geppert, M., & Mayer, M. (Eds.). (2006). Global, national and local practices in multinational companies. London: Palgrave. Gospel, H., & Pendleton, A. (Eds.). (2005). Corporate governance and labour management: An international comparison. Oxford: Oxford University Press. Hall, P., & Soskice, D. (2001). Varieties of capitalism. Oxford: Oxford University Press. Hancke, B., & Goyer, M. (2005). Degrees of freedom: Rethinking the institutional analysis of economic change. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms? Internationalisation, institutional change and systems of economic organization (pp. 53–77). Oxford: Oxford University Press. Hollingsworth, J. R., & Boyer, R. (1997). Contemporary capitalism: The embeddedness of institutions. Cambridge: Cambridge University Press. Jacoby, S. (2007). Convergence by design: The case of calpers in Japan. American Journal of Comparative Law. Kristensen, P. H. (1996). On the constitution of economic actors in Denmark. In R. Whitley, & P. H. Kristensen (Eds.), The changing European firm. London: Routledge. Kristensen, P. (1997). National systems of governance and managerial prerogatives in the evolution of work systems: England, Germany and Denmark compared. In R. Whitley, & P. H. Kristensen (Eds.), Governance at work: The social regulation of economic relations (pp. 3–46). Oxford: Oxford University Press. Kristensen, P. H. (2005). Modelling national business systems and the civilizing process. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms? Internationalisation, institutional change and systems of economic organization (pp. 383–414). Oxford: Oxford University Press. Kristensen, P. H., & Zeitlin, J. (2005). Local players in global games. The strategic constitution of a multinational corporation. Oxford: Oxford University Press. Lammers, C., & Hickson, D. J. (1979). Organizations alike and unalike. London: RKP. Lane, C. (1989). Management and labour in Europe. Aldershot: Edward Elgar. Lane, C. (1995). Industry and society in Europe. Aldershot: Edward Elgar. Lane, C. (2000). Globalization and the German model of capitalism—Erosion or survival? British Journal of Sociology, 25(2), 207–234. Lane, C. (2001). The emergence of German transnational companies: A theoretical analysis and empirical study of the globalization process. In G. Morgan, P. H. Kristensen, & R. Whitley (Eds.), The multinational firm (pp. 69–96). Oxford: Oxford University Press. Lane, C. (2005). Institutional transformation and system change: Changes in the corporate governance of German corporations. In G. Morgan, P. H. Kristensen, & R. Whitley (Eds.), The multinational firm (pp. 53–77). Oxford: Oxford University Press. Lilja, K., & Tainio, R. (1996). The Nature of the typical finnish firm. In R. Whitley, & P. H. Kristensen (Eds.), The changing European Firm (pp. 159–191). London: Routledge. Maurice, M., & Sorge, A. (2000). Embedding organizations. Amsterdam: John Benjamins Publishing. Maurice, M., Sorge, A., & Warner, M. (1980). Societal differences in organizing manufacturing units: A comparison of France, West Germany and Great Britain. Organization Studies, 1, 59–86. Moen, E., & Lilja, K. (2005). Change in coordinated market economies: The case of Nokia and Finland. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms? Internationalisation, institutional change and systems of economic organization (pp. 352–379). Oxford: Oxford University Press. Morgan, G. (2001a). Transnational communities and business systems. Global Networks, 1, 113–130.
ARTICLE IN PRESS
144 G. Morgan / Scand. J. Mgmt. 23 (2007) 127–145 Morgan, G. (2001b). The development of transnational standards and regulations and their impacts on firms. In G. Morgan, P. H. Kristensen, & R. Whitley (Eds.), The multinational firm (pp. 225–252). Oxford: Oxford University Press. Morgan, G. (2005). Institutional complementarities, path dependency and the dynamics of firms. In G. Morgan, R. Whitley, & E. Moen (Eds.), Changing capitalisms? Internationalisation, institutional change and systems of economic organization (pp. 415–446). Oxford: Oxford University Press. Morgan, G. (2006). Transnational actors, transnational institutions, transnational spaces: The role of law firms in the internationaisation of competitition regulation. In M.-L. Djelic, & K. Sahlin Andersson (Eds.), Transnational governance (pp. 139–160). Cambridge: Cambridge University Press. Morgan, G., & Kristensen, P. H. (2006). The contested space of multinationals: Varieties of institutionalism: Varieties of capitalism. Human Relations, 59(11), 1467–1490. Morgan, G., Kristensen, P. H., & Whitley, R. (Eds.). (2001). The multinational firm. Oxford: Oxford University Press. Morgan, G., & Quack, S. (2005). Institutional legacies and firm dynamics: The internationalisation of British and German Law Firms. Organization Studies, 26(2005), 1765–1768. Morgan, G., & Quack, S. (2006). The internationalization of professional service firms: Global convergence, national path dependency or cross border hybridisation? In Greenwood, & Suddaby (Eds.), Professional service firms: Research in the sociology of organizations, Vol. 24 (pp. 403–431). Elsevier: JAI Press. Morgan, G., Sturdy, A., & Quack, S. (2006). The globalization of management consultancy firms: Constraints and limitations. In M. Miozzo, & D. Grimshaw (Eds.), Knowledge intensive business services: Organizational forms and national institutions (pp. 236–264). Cheltenham: Edward Elgar. Morgan, G., Whitley, R., & Moen, E. (Eds.). (2005). Changing capitalisms? Internationalisation, institutional change and systems of economic organization. Oxford: Oxford University Press. North, D. (1990). Institutions, instituitonal change and economic performance. Cambridge: Cambridge University Press. Powell, W., & DiMaggio, P. (1991). The new institutionalism in organizational analysis. Chicago, IL: University of Chicago Press. Ruggie, J. (1998). Constructing the world polity. London: Routledge. Sabel, C. (1982). Work and politics. Cambridge: Cambridge University Press. Scott, W. R. (2001). Institutions and organizations. Thjousands Oaks: Sage. Shonfield, A. (1965). Modern capitalism. Oxford: Oxford University Press. Smelser, N., & Swedberg, R. (2005). The handbook of economic sociology (2nd ed.). Princeton, NJ: Princeton University Press. Sorge, A. (2005). The global and the local. Oxford: Oxford University Press. Streeck, W. (1992). Social institutions and economic performance. London: Sage. Streeck, W. (2004). Educating capitalists: A rejoinder to wright and takalotos. Socio Economic Review, 2(3), 425–438. Streeck, W., & Thelen, K. (Eds.). (2005). Beyond continuity: Institutional change in advanced political economies. Oxford: Oxford University Press. Streeck, W., & Yamamura, K. (Eds.). (2001). The origins of non-liberal capitalism. Ithaca, NY: Cornell University Press. Tainio, R., Houlman, M., & Pulkkinen, M. (2001). The internationalization of capital markets: How international institutional investors are restrucrturing finnish companies. In G. Morgan, P. H. Kristensen, & R. Whitley (Eds.), The multinational firm (pp. 153–171). Oxford: Oxford University Press. Takalotos, E. (2004). Market constraints, economic performance and political power. Socio Economic Review, 2(3), 415–424. Thelen, K. (2003). How institutions evolve: Insights from comparative historical analysis. In J. Mahoney, & D. Rueschemeyer (Eds.), Comparative historical analysis in the social sciences. Cambridge: Cambridge University Press. Thelen, K. (2005). How institutions evolve: The political economy of skills in Germany, Britain, the United States and Japan. Cambridge: Cambridge University Press. Tylecote, A., & Conesa, E. (1999). Corporate governance, innovation systems and industrial performance. Industry and Innovation, 6(1), 25–50. Whitley, R. (1992a). East Asian business systems. London: Sage. Whitley, R. (Ed.). (1992b). European business systems. London: Sage.
ARTICLE IN PRESS
G. Morgan / Scand. J. Mgmt. 23 (2007) 127–145 145 Whitley, R. (1999). Divergent capitalisms. Oxford: Oxford University Press. Whitley, R. (2000). The institutional structuring of innovation strategies: Business systems, firm types and patterns of technical change in different market economies. Organization Studies, 21(5), 855–886. Whitley, R. (2003). From the search for universal correlations to the institutional structuring of economic organization and change. Organization, 10(3), 481–502. Wright, E. O. (2004). Beneficial constraints: Beneficial for whom? Socio Economic Review, 2(3), 407–414. Yamamura, K., & Streeck, W. (Eds.). (2003). The end of diversity? Prospects for German and Japanese Capitalism. Ithaca, NY: Cornell University Press.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • National Innovation Systems Essay
  • Business Aviation Economics Essay
  • Essay about Highway System
  • A Summary of the National Response Framework Essay
  • Incident Management Systems Assisted Essay
  • Wolf and Moose Predator Prey Relationship in Isle Royale National Park: 1949-2014 Essay
  • innovation and change Essay
  • National Incident Management System Essay

Become a StudyMode Member

Sign Up - It's Free