Institutional governance systems and variations in national competitive advantage: An integrative framework

Griffiths, A. & Zammuto, R.F.

Academy of Management Review Vol. 30 Issue 4, p823-842.

Creating competitive industries has become one of the key tasks of governments. Explaining different adaptation outcomes in industries across nations cannot be fully accounted for simply by an emphasis on firm-level capabilities, market-driven policies, or by state-level policies. This paper proposes an integrative framework that draws on the strategic management and political economy literatures to explain variations in national industrial competitiveness. Differences with respect to institutional characteristics and capabilities, competitive outcomes, conditions of best fit and who bears the cost of industry adaptation are discussed.