First a brief summary with just the overview and main purpose of the article. Later an extensive summary of the articles given during the IBC course of the International Business master at the Uva. Including learning questions.
Theme 2 – Cultural context & Distance Theme 4 – Regulatory context, Codes,
Diffusion & Convergence
Kirkman et al., 2006 17 Aguilera & Cuervo-Cazurra, 2004 35
Drogendijk & Slangen, 2006 19 Haxhi & van Ees, 2010 38
Dikova et al., 2010 20
Learning questions Page 43
1
, Introduction to IBC
Article: Berry, Guillén & Zhou (2010). An institutional approach to cross-national
distance.
Goal:
Disaggregate the construct of distance by proposing a set of multidimensional measures,
including economic, financial, political, administrative, cultural, demographic, knowledge,
global connectedness, and geographic distance. Defining and measuring distance along
multiple dimensions is important because different types of distance can affect firm,
managerial, or individual decisions in different ways, depending on the dimension of distance
under examination.
Existing approaches to cross-national distance are Hofstede’s four measures of culture,
Schwartz’s cultural values framework, Ghemawat’s CAGE framework. However, as there are
critics, this article provided a new theoretical framework with 9 dimensions of cross-national
distance and its indicators.
Article: Isenberg (2008). The global entrepreneur
- More and more start-ups are being born global.
- By tapping resources or serving customers across nations, entrepreneurs can take on
larger rivals, chase global opportunities, and use distance to create new products or
services.
- Two reasons for internationalization: 1) defensive, i.e., be competitive; 2) offensive,
i.e., more opportunities.
- Distances, differences in cultural contexts, the paucity of resources are the main
challenges new ventures face.
- Successful entrepreneurs are clear in their purpose, strike alliances from positions of
weakness, are able to manage global supply chains, and can establish multinational
organizations from the outset.
Theme 1 – Institutional context & the Dutch case
Williamson (2000) - The new institutional Economics; Taking stock, looking ahead
The article argued that institutions are still poorly defined and understood. Williamson argues
that there is a hierarchy by displaying different levels of institutions.
Williamson provides an overview of the previous literature on the topic of New Institutional
Economics and a hierarchical 4-Stage-Model to describe the emergence and structure of
complex institutional systems in a society.
The higher level imposes constraints on the level immediately below. The reversed arrows
indicate that there are opportunities for feedback loops.
Level 1: (informal) cognitive, cultural; spontaneous creation, slow-paced change.
Level 2: (formal) rules of the game; evolutionary process > the definition and enforcement of
property rights and contract laws are important features.
Level 3: (governance) incomplete contracts, TCE and agency, because of frequency,
specificity, uncertainty, bounded rationality (time, info, cognition).
Level 4: (corporate) price and qualities; incentive alignment.
North (1991) – Institutions
With this essay, North aims to elaborate on the role of institutions in the performance of
economies and illustrate his analysis from economic history.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller maaiikex_. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.16. You're not tied to anything after your purchase.
