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Business Systems and Organizational Capabilities - The Institutional Structuring of Competitive Competences (Paperback)
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Business Systems and Organizational Capabilities - The Institutional Structuring of Competitive Competences (Paperback)
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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 authoritysharing 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.
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