Pro-market institutions and global strategy

The pendulum of pro-market reforms and reversals

Alvaro Cuervo-Cazurra, Ajai Gaur, Deeksha Singh

Research output: Contribution to journalReview article

3 Citations (Scopus)

Abstract

We review the literature analyzing the impact of pro-market institutions on firms’ global strategy. We propose that the ideological tension between whether the government or the market should drive economic development results in a pendulum of pro-market reforms and reversals that drive changes in firm strategy and performance. Much progress has been made in the analyses of pro-market reforms and their impact on firms’ international strategies and performance. However, there is a need to further learn about four areas: (1) the concept of pro-market institutions, in particular the variety of institutional dimensions, the measures, and the influence of informal institutions on firm strategies; (2) the drivers of changes in pro-market institutions, especially firms’ influences and the co-evolution of firm strategies and institutional changes; (3) the implications of changes in pro-market reforms for the interactions among integration, diversification, and internationalization strategies, the causality chains connecting institutions and strategies, and the reconfiguration of activities globally; and (4) the non-traditional moderators that alter the impact of pro-market institutional dynamics on firms’ strategies, such as country-level political systems, industry-level competitor reactions, and individual-level managerial capabilities and perceptions.

Original languageEnglish (US)
Pages (from-to)598-632
Number of pages35
JournalJournal of International Business Studies
Volume50
Issue number4
DOIs
StatePublished - Jun 1 2019

Fingerprint

Pendulums
Moderators
Reversal
Markets and institutions
Global strategy
Market reform
Economics
Firm strategy
Industry

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Keywords

  • emerging markets
  • institutional change
  • institutions
  • international strategy
  • multinationals
  • pro-market reforms
  • pro-market reversals

Cite this

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Pro-market institutions and global strategy : The pendulum of pro-market reforms and reversals. / Cuervo-Cazurra, Alvaro; Gaur, Ajai; Singh, Deeksha.

In: Journal of International Business Studies, Vol. 50, No. 4, 01.06.2019, p. 598-632.

Research output: Contribution to journalReview article

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