Western Multinational Corporations in Latin America: Conflating Capitalisms and Institutional Dynamics of Inter-systemic Actor Exchange (Contributions to Economics)

This book advances the debate on socio-economic development and multinational corporations (MNCs). It provides an actor-centered perspective and develops the framework called ‘Conflating Capitalisms’ that allows for a better understanding of both MNC-induced institutional change in the host country and the subsequent impact on local development. The book uses the empirical case of Western MNCs in Latin America. It applies a sequential mixed-method design, including a large-scale elite survey on corporate behavior and in-depth, semi-structured interviews with local decision-makers on the institutionalization of German dual vocational training (DVT) in Brazil. The book presents strong evidence for both behavioral contradiction in the host country - with MNCs showing alien-to-the-system behavior - and subsequent actor-induced institutional change, with varied developmental impact. Additionally, the book offers novel insights into MNCs’ handling of missing complementary institutions and the institutionalization process of coordinated practices in Latin America. This book appeals to scholars, students, and practitioners who are interested in advancing the field of development and MNCs. About this Book Contents About the Author List of Abbreviations List of Figures List of Tables Chapter 1: Introduction References Chapter 2: Point of Departure 2.1 The Empirical and the Theoretical Puzzle 2.1.1 The Empirical Puzzle 2.1.2 The Theoretical Puzzle 2.1.3 Discussion and Overcoming Drawbacks 2.2 Setup for Further Theory Development 2.2.1 Logic of this Investigation and Research Questions 2.2.2 Bringing the MNC Back In References Chapter 3: Actor Specificities and the Types of Socio-economic Organization 3.1 Understanding the MNC 3.2 Understanding the Game(s) Beyond Impersonal Markets 3.2.1 Comparative Capitalism 3.2.2 Varieties of Capitalism: Diversity of Games 3.2.3 Merits Contributed and the Inclusion of Developing Countries 3.3 Capitalism in Developing Countries and Latin America ́s HME 3.3.1 HME ́s Analytical Adjustments and Limitations 3.3.2 HME ́s Institutional Dimensions 3.3.3 HME ́s Institutional Complementarities 3.4 Summary and Reflection References Chapter 4: Transcending Borders and Institutional Dynamics 4.1 Reconsidering Institutional Analysis 4.2 Broadening the Conception of Man 4.3 Institutions Matter, but Which Ones? 4.3.1 The Organizational Field and Isomorphism 4.3.2 Various Institutional Fields and the Situation of Institutional Duality 4.4 Alien-to-the-System, Agency and Institutional Change 4.4.1 Institutionalization 4.4.2 Day-to-Day Operations: Reversing Isomorphism 4.4.3 Institutional Entrepreneurship 4.4.4 Summary and Reflection 4.5 Institutional Condition Triangle 4.5.1 The Strength of Organizational Fields 4.5.2 Potential Impact of Actor-Induced Change 4.6 Summary and Assembly of Conflating Capitalisms References Chapter 5: Conflating Capitalisms: Western MNCs in Latin America 5.1 Latin America: MNCs 5.2 Developmental Status Quo, Institutional Diagnosis, and Potential Ways Out 5.3 Country Selection 5.3.1 Source Countries: CMEs and LMEs 5.3.2 Destination Countries: HMEs 5.4 Conflating Capitalisms: Western MNCs in Latin America 5.5 Methodological Considerations: A Deductive Sequential Mixed Design References Chapter 6: The Action Situation and Behavioral Patterns: A Quantitative Approach 6.1 Condition Triangle and Hypotheses 6.1.1 Condition Triangle 6.1.2 Hypothesis 6.2 Research Design 6.3 Instrument Development 6.3.1 Operationalization 6.3.2 Questionnaire Development 6.4 Data Gathering 6.4.1 Population and Sampling 6.4.2 Survey 6.4.3 Data Processing 6.5 Statistical Analysis 6.5.1 N51 6.5.1.1 Composite Indicators 6.5.1.2 Item Level 6.5.2 N134 6.5.2.1 Group Differences 6.5.2.2 Complementarities 6.5.3 Behavioral Patterns 6.5.3.1 Exploratory Factor Analysis 6.5.3.2 Education and Behavioral Relations: N51 6.5.3.3 Education and Group Differences (SoO, CoO) 6.6 Summary and Discussion: Quantitative Analysis References Chapter 7: Institutional Contradiction and Actor-Induced Institutional Change: German Dual Vocational Training in Brazil (and ... 7.1 Education: Status Quo and the Systemic Perspective 7.1.1 VET in Brazil Today 7.1.2 DVT in Germany 7.1.3 Brazil ́s Compatibility with German DVT 7.2 Study Design, Data Collection, and Methodical Considerations 7.2.1 Research Design 7.2.2 Data Gathering and Processing 7.2.3 Qualitative Content Analysis 7.3 Applying the Change Cube 7.4 DVT in Mexico 7.4.1 An Outline of DVT in Mexico 7.4.2 Functioning of DVT in Mexico ́s HME 7.4.3 Institutional Entrepreneurship 7.4.4 Reversed Isomorphism: German Subsidiaries in Mexico 7.4.5 Summary and Degree of Institutionalization 7.5 DVT in Brazil 7.5.1 An Outline of DVT in Brazil 7.5.2 Functioning of DVT in Brazil ́s HME 7.5.3 Institutional Entrepreneurship 7.5.4 Reversed Isomorphism: German Subsidiaries in Brazil 7.6 Discussion and Degree of Institutionalization References Chapter 8: Summary and Concluding Remarks References