Organisational Fields
21 important questions on Organisational Fields
What is the organisational field?
What is the difference between old and new style clusters?
What is global sourcing (outsourcing)?
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Why have old-style clusters lost much of their economic activity?
2. Member-firms cannot compete with input costs, causing new clusters to emerge
What is competitive success?
How do the institutional spheres contribute to the cluster's competitive success?
- Market: has coordinative mechanisms like social meetings which allows for the development of cluster cultures, which leads to better understanding and the red queen effect, which in turn lead to more competitive success
- The civil society: pride develops through society as many people are associated through work.
How can clusters lose their competitive advantage?
What are the 2 types of costs related to institutional differences?
2. Legitimacy costs
What are information costs?
How do the differences in regulative, normative and cognitive institutions between countries influence the information costs from a functional perspective?
2. different expectations shaped by home-based normative institutions3. differences in cognitive institutions influence how people view the world, hard to solve and can be costly to learn
How can the differences in regulative institutions between countries be understood?
2. Experience and engage with local players to learn local norms
3. Hiring of consultants
What are legitimacy costs?
1. Violations of local laws
2. Violations of normative and cognitive institutions which can make them illegitimate in the eyes of stakeholders and lead to additional investments to compensate this
3. Preconceived opinions about the domestic state, market and civil society.
What is guilt by association?
What is a possible solution to overcome the legitimacy costs?
What 4 types of distance are there?
2. Regulative distance - extent to which political and legal institutions differ between 2 countries
3. Economic distance - differences in consumer needs, quality of infrastructure, and labour force composition.
4. Cultural distance - differences between normative and cognitive institutions of countries
What is institutional arbitrage?
What is cultural distance?
What are the cultural dimensions in which countries differ?
2. Power distance
3. Uncertainty avoidance
4. Masculinity vs femininity
5. Long-term orientation
6. Indulgence - society that allows relatively free gratification of basic and natural human drivers and its more restrained counterpart that suppresses through strict social norms
What are the 5 assumptions in which cultural differences influence international activity?
2. Cultural enrichment - differences lead to opportunities to learn about different ways to approach tasks and practices
3. Cultural complementarity - combination of clash and enrichment. Countries shouldn't be to different, but also not to similar
4. Cultural adaption - cross-border activity will be easier if cultures are similar
5. Cultural capability - importance lies in how firms deal with cultural differences, not the differences itself
Why are the different types of distance important for trade?
2. Cultural - impact is hard to measure because of difficulties separating differences
3. Regulative - impacts trade through rules
What is psychic distance?
1. Individual characteristics (experience, from network, etc.)
2. Country characteristics (cultural differences, etc.)
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