Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation
By Michael A. Witt, Gregory Jackson. Journal of International Business Studies, 2016
209 citations recorded by the source corpus.
How do national-level institutions relate to national comparative advantages? We seek to shed light on this question by exploring two different sets of hypotheses based on the Varieties of Capitalism and other branches of comparative capitalisms literature. Applying fuzzy-set qualitative comparative analysis to data from 14 industries in 22 countries across 9 years, we find that comparative advantages in industries with radical innovation emerge in specific configurations mixing coordinated and liberal institutional features. Institutional comparative advantage in industries with radical innovation may thus be based on the “beneficial constraints” of opposing institutional logics rather than on the self-reinforcing institutional coherence envisioned in much of the Varieties of Capitalism literature. By contrast, we find that coordinated market economies may have comparative advantages in industries with incremental innovation, as envisioned in the Varieties of Capitalism literature. Our article contributes to our understanding of the “so what?” related to capitalist diversity and its implications for location decisions of multinational enterprises. We further present a coordination index going beyond Hall and Gingerich (Br J Polit Sci 39:449–482, 2009) with annual values for 22 OECD countries from 1995 through 2003.
Subfields: Economics and Econometrics, Sociology and Political Science, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/1a0a6a22dd486c0cf04550baca58ba5c40a79ccb
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Citations in the corpus
- De-globalization: Theories, predictions, and opportunities for international business research (2019, background): “This may be a transitional phase for the next decades, or it may become a permanent condition if China fails to break through the middle income trap and thus does not grow much stronger (Lewin, Kenney, & Murmann, 2016; Witt, 2016).”
- Mapping the business systems of 61 major economies: A taxonomy and implications for varieties of capitalism and business systems research (2018, unknown): “This is consistent with recent findings by Witt and Jackson (2016) that only six in 22 advanced industrialized economies exhibited the coherence across spheres of the political economy envisioned by Hall and Soskice (2001).”