Dialogue on Comparative Institutional Analysis and International Business

Scholars of international business (IB) know that ‘institutions matter’, but how they matter remains a hotly contested question. Multinational enterprises (MNEs) operate in different business environments and face challenges in strategically locating themselves and adapting to the diversity of institutions across countries and regions. MNEs bring different home country endowments in the way of routines, standard practices and capabilities, but operate in diverse host country environments where very different sets of institutional constraints and opportunities may exist. MNEs’ experience in emerging markets, including Central and Eastern Europe, has highlighted the importance of institutions for understanding business strategy and performance across national borders.