A framework to facilitate institutional arrangements for smallholder supply in developing countries: An agribusiness perspective

The industrialization of agriculture and the potential problem of small-scale farmer marginalization calls for a fresh approach to the design of agribusiness supply chain arrangements in developing countries. The objective of the paper is to contribute to a better understanding of institutional arrangements that can promote stable smallholder agribusiness contracting arrangements in a developing country context. A case study approach, incorporating a transaction cost framework, is used to test whether trust can significantly change the contract characteristics of supply. The results suggest that although the presence of trust can influence the contract characteristics of a supply arrangement, it may not be significant because of other factors in a developing country context. Bearing this in mind, a number of institutional arrangements are recommended in order to promote more stable contract conditions.     

Varieties of Asian capitalism: Toward an institutional theory of Asian enterprise

In this paper we respond to calls for an institution-based perspective on strategy. With its emphasis upon mimetic, coercive, and normative isomorphism, institutional theory has earned a deterministic reputation and seems an unlikely foundation on which to construct a theory of strategy. However, a second movement in institutional theory is emerging that gives greater emphasis to creativity and agency. We develop this approach by highlighting co-evolutionary processes that are shaping the varieties of capitalism (VoC) in Asia. To do so, we examine the extent to which the VoC model can be fruitfully applied in the Asian context. In the spirit of the second movement of institutional theory, we describe three processes in which firm strategy collectively and intentionally feeds back to shape institutions: (1) filling institutional voids, (2) retarding institutional innovation, and (3) deploying institutional escape. We outline the key contributions contained in the articles of this Special Issue and discuss a research agenda generated by the VoC perspective.

The timing of market entry and firm performance: A perspective of institutional theory

Integrating literature from institutional theory with that from market entry research, we study the effects of a firm's early marketing entry on other firms' behaviors and performances. In addition, we also consider the moderating effect of other institutional factors, such as the firms' home-country culture and institutional environments in an emerging economy. Based on a review of all the relevant research, we develop a theoretical model with testable hypotheses. With empirical data from multi-national enterprises (MNEs) competing in China's insurance-service market, we test the hypotheses. Our data analyses show evidence that, other things being equal, early market entry can cause institutional imitation, in terms of market diversification, among imitators. At the same time, the imitation can be moderated by the home-country culture of the MNEs. In addition, the imitation of early market entry firms has some significant effects on the performance of imitators, including less deviation from the industry norm and better financial performance.     

Broadening the scope of the resource-based view in marketing: The contingency role of institutional factors

Drawing on the resource-based view (RBV) of the firm and institutional theory, the authors propose and test an integrated model in an industrial marketing context that expands the boundaries of the RBV to incorporate institutional factors pertaining to societal and political issues. The rationale for taking such an integrated approach stems from the knowledge that firm performance can be explained better by incorporating not only the inability of managers to take particular actions but also their reluctance or unwillingness to pursue those behaviors. The authors develop an integrated model that tests (1) the direct effect of marketing institutional factors on the development of marketing RBV factors and (2) the moderating role of marketing institutional factors on the performance effect of marketing RBV factors. The empirical results indicate general support for the hypotheses, and this research provides several implications for broadening the scope of the RBV in marketing by underscoring how fit between marketing resources and the context in which those resources are deployed affects firm performance.     

Interacting effects of uncertainties and institutional forces on information sharing in marketing channels

Marketing channel members in China face difficulties created by market uncertainty and opportunistic costs resulting from behavioral uncertainty, both of which undermine channel performance. In this article, we argue that channel members can use information sharing to maintain channel performance under uncertain circumstances. With empirical data from China, we develop and test a theoretical framework which explores the effects of market uncertainty and contractual commitment on information sharing and supplier operational performance. Moreover, we also find that regulatory protection moderates the relationship between market uncertainty and information sharing. Normative and cognitive protection moderates the relationship between contractual commitment and information sharing. Indeed, information sharing serves as a mediator between uncertainties and supplier operational performance. Consequently, Chinese channel managers are advised to increase the use of more information sharing to counter market and behavioral uncertainties in marketing channels.     

Institutional theory in business marketing: A conceptual framework and future directions

Institutional environments exert significant effects on organizational behavior, structure, strategy, governance, and process. To gain competitive advantage, managers are striving for legitimacy while maintaining efficiency. In line with this thinking, we propose the developmental process of institution-driven and legitimacy-embedded efficiency, and emphasize the confluence of legitimacy and efficiency in the context of business marketing. We then highlight several promising directions for further research on the development of institutional theory and its application in business marketing. Finally, we present a brief summary of each paper in this special issue.     

Change and continuity in Japanese corporate governance

Previous studies on Japanese corporate governance were largely based on the agency theory framework, and can be seen as attempts to understand the unique monitoring mechanisms in the Japanese context. This paper briefly reviews prior research and then discusses the recent changes in the environment that have been affecting Japanese corporate governance. Our central argument is that there is both change and continuity in Japanese Corporate Governance. We also present emerging research from an institutional theory perspective. In this line of research, corporate governance is treated as part of a nation’s institutional framework and hence, researchers need to understand unique institutional arrangements that affect corporate governance practices and their change or continuity.

The role of institutional arbitrage in the search for product innovation: Firm level evidence from Norway

Evolutionary theorizing conceptualizes the discovery of new products as a successful outcome from searching for innovation in which firms combine new and old knowledge and resources. Prior research has shown that the propensity for discovering new products is greatest when firms cross a technological and/or organizational boundary in the search for new knowledge. In this paper, we add a new dimension to this literature: we examine whether, and to what extent, crossing a national boundary, as when firms use knowledge from network partners in foreign countries, influences the likelihood that firms will introduce new products into the market. Drawing on theorizing on institutional arbitrage in the literature on national innovation systems (NIS) and varieties of capitalism (VOC), we propose that companies that cross a national boundary in searching for innovation are significantly more likely to introduce new products. Detailed survey data on firms; data on their network partners, including their location; and regression analysis show that the use of knowledge from actors in foreign NIS has a positive influence on product innovation.     

The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry

This empirical study of Taiwan’s textile and apparel manufacturers investigates the relationships between green supply chain management (GSCM) drivers (organizational support, social capital and government involvement) and GSCM practices (green purchasing, cooperation with customers, eco-design and investment recovery). It also studies moderating effects by institutional market, regulatory and competitive pressures. Through hierarchical moderated regression analysis, the results of this research show that (1) except for investment recovery, the other three GSCM practices are positively affected by GSCM drivers; (2) investment recovery is positively affected only by organizational support; (3) market pressure has no moderating effects on most of the relationships between GSCM drivers and GSCM practices; (4) regulatory pressure has positive moderating effects on most of the relationships between GSCM drivers and GSCM practices; and (5) competitive pressure has negative moderating effects on most of the relationships between GSCM drivers and GSCM practices. Finally, the implications of this study and future research are discussed.