Business Systems and Organizational Capabilities : The Institutional Structuring of Competitive Competences

Twenty-first century capitalism has been marked by an increasing international economic independence, and considerable differences between dominant economic systems of coordination and control. In this context, national competition and coordination within industries has increased, but the governance of leading firms, and the kinds of competences they develop, remain quite diverse. This book shows how different kinds of firms become established and develop different capabilities in different societies, and as a result are effective in particular kinds of industries and markets. By integrating institutionalist approaches to organizations with the capabilities theory of the firm, Richard Whitley suggests how we can understand this combination of diversity and integration by developing the comparative business systems framework in three major ways. First, by identifying the particular circumstances in which distinctive business systems and innovation systems become nationally established and reproduced, as well as how changing endogenous and exogenous pressures have affected the major kinds of business systems that developed in many OECD states during the postwar period. Second, by showing how variations in authority sharing with employees and business partners and in the provision of organizational careers lead institutional regimes to affect the nature of organizational capabilities that dominant firms develop and enable them to deal with different kinds of risks and opportunities in particular technologies and markets. Third, by identifying the circumstances in which multinational firms are likely to develop distinctive transnational organizational capabilities through such authority sharing and careers, and so become different kinds of companies from their more domestically focused competitors. In many, if not most, cases of cross national managerial coordination, these conditions rarely exist, and so the extent to which multinational firms do indeed constitute distinct organizational forms and strategic actors is much less than is sometimes claimed. Contents......Page 10 Figure......Page 12 List of Tables......Page 13 Abbreviations......Page 15 Part I. Introduction......Page 18 1. The Comparative Analysis of Competing Capitalisms......Page 20 Part II. The Changing Nature of National Capitalisms: Institutional Regimes, Business Systems, and Innovation Systems......Page 50 2. The Contingent Nature of National Business Systems: Types of States and Complementary Institutions......Page 52 3. Constructing Innovation Systems: The Roles of Institutional Regimes and National Public Science Systems......Page 74 4. Changing Institutional Regimes and Business Systems: Endogenous and Exogenous Pressures on Postwar Systems of Economic Organization......Page 103 5. The Growth of International Governance and the Restructuring of Business Systems: The Effects of Multi-levelled Governance in Europe and Elsewhere......Page 131 Part III. Constructing Organizational Capabilities in Different Institutional Regimes......Page 162 6. The Institutional Structuring of Organizational Capabilities: Variations in Authority Sharing and Organizational Careers......Page 164 7. Developing Innovative Competences in Different Institutional Frameworks......Page 192 8. Constructing Capabilities in Entrepreneurial Technology Firms: A Comparative Institutional Analysis of Germany, Sweden, and the UK......Page 220 9. Project-Based Firms: New Organizational Form or Variations on a Theme?......Page 245 Part IV. Internationalization and the Development of Transnational Organizational Capabilities......Page 266 10. Divergent Multinational Firms: Home and Host Economy Effects on Internationalization Strategies and Organizational Capabilities......Page 268 11. Developing Transnational Organizational Capabilities in Multinational Companies: The Role of Cross-National Authority Sharing and Organizational Careers......Page 293 12. The Changing Japanese Multinational: Application, Adaptation, and Learning in Car Manufacturing and Financial Services......Page 319 References......Page 351 B......Page 383 C......Page 384 D......Page 386 E......Page 387 F......Page 388 H......Page 389 I......Page 390 J......Page 393 K......Page 394 M......Page 395 O......Page 398 P......Page 399 S......Page 401 T......Page 403 U......Page 404 W......Page 405

twenty-first Century Capitalism Has Been Marked By An Increasing International Economic Independence, And Considerable Differences Between Dominant Economic Systems Of Coordination And Control. In This Context, National Competition And Coordination Within Industries Has Increased, But The Governance Of Leading Firms, And The Kinds Of Competences They Develop, Remain Quite Diverse. This Book Shows How Different Kinds Of Firms Become Established And Develop Different Capabilities In Different Societies, And As A Result Are Effective In Particular Kinds Of Industries And Markets.

by Integrating Institutionalist Approaches To Organizations With The Capabilities Theory Of The Firm, Richard Whitley Suggests How We Can Understand This Combination Of Diversity And Integration By Developing The Comparative Business Systems Framework In Three Major Ways. First, By Identifying The Particular Circumstances In Which Distinctive Business Systems And Innovation Systems Become Nationally Established And Reproduced, As Well As How Changing Endogenous And Exogenous Pressures Have Affected The Major Kinds Of Business Systems That Developed In Many Oecd States During The Postwar Period. Second, By Showing How Variations In Authority Sharing With Employees And Business Partners And In The Provision Of Organizational Careers Lead Institutional Regimes To Affect The Nature Of Organizational Capabilities That Dominant Firms Develop And Enable Them To Deal With Different Kinds Of Risks And Opportunities In Particular Technologies And Markets. Third, By Identifying The Circumstances In Which Multinational Firms Are Likely To Develop Distinctive Transnational Organizational Capabilities Through Such Authority Sharing And Careers, And So Become Different Kinds Of Companies From Their More Domestically Focused Competitors. In Many, If Not Most, Cases Of Cross National Managerial Coordination, These Conditions Rarely Exist, And So The Extent To Which Multinational Firms Do Indeed Constitute Distinct Organizational Forms And Strategic Actors Is Much Less Than Is Sometimes Claimed.

Contents 10 Figure 12 List of Tables 13 Abbreviations 15 Part I. Introduction 18 1. The Comparative Analysis of Competing Capitalisms 20 Part II. The Changing Nature of National Capitalisms: Institutional Regimes, Business Systems, and Innovation Systems 50 2. The Contingent Nature of National Business Systems: Types of States and Complementary Institutions 52 3. Constructing Innovation Systems: The Roles of Institutional Regimes and National Public Science Systems 74 4. Changing Institutional Regimes and Business Systems: Endogenous and Exogenous Pressures on Postwar Systems of Economic Organization 103 5. The Growth of International Governance and the Restructuring of Business Systems: The Effects of Multi-levelled Governance in Europe and Elsewhere 131 Part III. Constructing Organizational Capabilities in Different Institutional Regimes 162 6. The Institutional Structuring of Organizational Capabilities: Variations in Authority Sharing and Organizational Careers 164 7. Developing Innovative Competences in Different Institutional Frameworks 192 8. Constructing Capabilities in Entrepreneurial Technology Firms: A Comparative Institutional Analysis of Germany, Sweden, and the UK 220 9. Project-Based Firms: New Organizational Form or Variations on a Theme? 245 Part IV. Internationalization and the Development of Transnational Organizational Capabilities 266 10. Divergent Multinational Firms: Home and Host Economy Effects on Internationalization Strategies and Organizational Capabilities 268 11. Developing Transnational Organizational Capabilities in Multinational Companies: The Role of Cross-National Authority Sharing and Organizational Careers 293 12. The Changing Japanese Multinational: Application, Adaptation, and Learning in Car Manufacturing and Financial Services 319 References 351 Index 383 A 383 B 383 C 384 D 386 E 387 F 388 G 389 H 389 I 390 J 393 K 394 L 395 M 395 N 398 O 398 P 399 R 401 S 401 T 403 U 404 V 405 W 405 Whitley is one of the leading exponents of the 'business systems' approach which analyses the different character and organisation of firms in different national settings. Here he summarises his approach and links it to the capabilities and strategies of firms Whitley is one of the leading exponents of the 'business systems' approach which analyses the different character and organization of firms in different national settings. Here he summarizes his approach and links it to the capabilities and strategies of firms