International management: An institutional perspective
International management: An institutional perspective

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

International management: An institutional perspective

Institutional pressures within multinational firms

A good deal of writing and research about institutions is concerned with the way in which common institutional pressures act to bring about similarity of practices between organisations. For example, Barry Staw and Lisa Epstein (2000) provide a research-based account of how large firms adopt popular management techniques for reasons of legitimacy rather than efficiency. They show that these techniques lead, on average, to higher CEO pay and increased corporate reputation, but not to higher economic performance.

While such single-country studies tend to use institutional theory to account for similarities or convergence of management practices between firms, cross-national studies tell a different story. Firms in different parts of the world face different kinds of legitimacy pressures and here institutional theory is more often deployed to account for differences between management practices in different parts of the world.

In multinational organisations, managers are often faced with competing institutional pressures in different parts of the world. This can create particular challenges for managers in such organisations. In the next section you are going to read an account of research on the effects of these pressures on management practices within a multinational firm.


Take your learning further371

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses372.

If you are new to university level study, we offer two introductory routes to our qualifications. Find out Where to take your learning next?373 You could either choose to start with an Access courses374or an open box module, which allows you to count your previous learning towards an Open University qualification.

Not ready for University study then browse over 1000 free courses on OpenLearn375 and sign up to our newsletter376 to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371