Chapter 4 Flashcards

1
Q

institution-based view

A

A leading perspective of strategy that argues that in addition to industry-based and resource-based views, firms also need to take into account wider influences from sources such as the state and society when crafting strategy

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2
Q

institution

A

Humanly devised constraints that structure human interaction— informally known as the “rules of the game”

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3
Q

institutional framework

A

A framework of formal and informal institutions governing individual and firm behavior

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4
Q

formal institution

A

Institutions represented by laws, regulations, and rules

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5
Q

regulatory pillar

A

How formal rules, laws, and regulations influence the behavior of individuals and firms

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6
Q

informal institution

A

An institution represented by norms, cultures, and ethics

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7
Q

normative pillar

A

How the values, beliefs, and norms of other relevant players influence the behavior of individuals and firms

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8
Q

norms

A

The prevailing practice of relevant players that affect the focal individuals and firms

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9
Q

cognitive pillar

A

The internalized, taken-for-granted values and beliefs that guide individual and firm behavior

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10
Q

transaction cost

A

The cost associated with the economic transaction—or more broadly, the cost of doing business

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11
Q

opportunism

A

Self-interest seeking with guile

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12
Q

relational contracting

A

Contracting based on informal relationships

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13
Q

informal, relationship-based, personalized exchange

A

A way of economic exchange based on informal relationships among transaction parties

  • Also known as relational contracting
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14
Q

arm’s-length transaction

A

Transaction in which parties keep a distance, develop little social relationship and rely on contracts

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15
Q

formal, rule-based, impersonal exchange

A

A way of economic exchange based on formal transactions in which parties keep a distance

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16
Q

institutional transition

A

Fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect organizations as players

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17
Q

firm strategy, structure, and rivalry

A

How industry structure and firm strategy interact to affect interfirm rivalry

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18
Q

factor endowment

A

The endowment of production factors such as land, water, and people in one country

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19
Q

related and supporting industries

A

Industries that are related to and/or support the focal industry

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20
Q

domestic demand

A

Demand for products and services within a domestic economy

21
Q

intellectual property right (IPR)

A

Right associated with the ownership of intellectual property

22
Q

bounded rationality

A

The necessity of making rational decisions in the absence of complete information

23
Q

nonmarket (political) strategy

A

A strategy that centers on leveraging political and social relationships

24
Q

institutional work

A

Purposive action aimed at creating, maintaining, and disrupting institutions

25
institutional logic
A socially constructed set of practices, assumptions, and values that shape behavior
26
institutional pluralism
The existence of multiple institutional logics
27
state-owned enterprise (SOE)
A firm owned and controlled by the state (government)
28
hybrid organization
An organization that incorporates elements from different institutional logic
29
culture
The collective programming of the mind that distinguishes the members of one group or category of people from another
30
power distance
The degree of social inequality
31
individualism
The perspective that the identity of an individual is most fundamentally based on his or her own individual attributes
32
collectivism
The perspective that the identity of an individual is most fundamentally based on the identity of his or her collective group (such as family, village, or company)
33
masculinity
A relatively strong form of societal-level sex role differentiation whereby men tend to have occupations that reward assertiveness and women tend to work in caring professions
34
femininity
A relatively weak form of societal-level sex role differentiation whereby more women occupy positions that reward assertiveness and more men work in caring professions
35
uncertainty avoidance
The extent to which members in different cultures accept ambiguous situations and tolerate uncertainty
36
long-term orientation
A perspective that emphasizes perseverance and savings for future betterment
37
ethics
The norms, principles, and standards of conduct governing individual and firm behavior
38
code of conduct (code of ethics)
Written policies and standards for corporate conduct and ethics
39
ethical relativism
The relative thinking that ethical standards vary significantly around the world and that there are no universally agreed-upon ethical and unethical behaviors
40
ethical imperialism
The imperialistic thinking that one’s own ethical standards should be applied universally around the world
41
corruption
The abuse of public power for private benefit usually in the form of bribery
42
Foreign Corrupt Practices Act (FCPA)
A US law enacted in 1977 that bans bribery of foreign officials
43
extraterritoriality
The reach of one country’s laws to other countries
44
in-group
Individuals and firms are regarded as part of “us”
45
out-group
Individuals and firms are not regarded as part of “us”
46
cultural distance
The difference between two cultures along some identifiable dimensions
47
institutional distance
The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries
48
The name of Chapter 4
Emphasizing Institutions, Cultures, and Ethics