CCS Article 1, 2

10 flashcards · Other · by Daniel F.

  1. LME vs CME

  2. Advantages of CMEs vs LMEs (1. H)

    CMEs: comparative advantages in industries with incremental innovation Supported hypothesis LME: comparative advantages in industries with radical innovation Unsupported hypothesis: radical innovation needs very specific combinations of both liberal and coordinated types of institutions

  3. Combining LME institutions and CME institutions (2. H)

    Certain combinations of liberal market and coordinated logics across two or more institutional domains may enable institutional comparative advantage by compensating for institutional weaknesses inherent in “pure” configurations Supported hypothesis

  4. VOC (Witt, M. A., & Jackson, G. 2016)

    framework used to analyze and compare the institutional differences between capitalist economies Originally developed in 2001 two ideal types of capitalist economies: Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs)

  5. Limitations of VOC

    Oversimplified Ignores: politics, change, cultural differences, globalization Limited scope: can't be applied to developing or transitioning economies

  6. VIS (Fainshmidt, S., Judge, W. Q., Aguilera, R. V., & Smith, A. (2018))

    Aims to better than VOC and NBS by having more institutional dimentions seven distinct national institutional systems

  7. National institutional systems (VIS)

    State-Led The state plays a dominant role high degree of direct and indirect intervention in private sector activities state provided capital state control through political appointments. Fragmented with fragile state: with low levels of trust and cooperation among firms Economic actors rely on informal networks and personal connections to navigate the business environment Family-Led: family-owned businesses Family intervention in management is common extended family is often the core unifying…

  8. VIS Countries

  9. VIS vs VOC

    VIS: also focuses on developing countires, anthropology and sociology VOC: only focusing on economics

  10. How companies can use VIS and VoC

    understand the institutional context of the countries in which they operate or are considering entering