Introduction

Abstract

‘Institutions are the rules of the game in a society or, more formally, are the humanly- devised constraints that shape human interaction’² They may be either the formal laws created by governments or the informal codes of practice and of behaviour found within families or within particular communities. Either way they are important because they help to create order and the basis for co-operation in an otherwise uncertain world. For example, formal laws and regulations are the basis of property rights, whilst informal codes underpin trust and shape expectations of the likely behaviour of associates. As a consequence, the institutional background is the critical reference point and foundation stone which affects the evolution of organizations, whether economic or political, and influences expectations and human responses.³ Since both formal and informal codes and rules vary internationally, it is clear that the institutional environment is a vital factor explaining why both the character and performance of firms may vary between countries. As such it also underpins theories explaining the dynamics of international competitive advantage. The idea that the basis of competitive advantage in one era can sow the seeds of disadvantage in a subsequent one, because institutional rigidities impede innovation, lies at the heart of analyses of often controversial interpretations of economic success and decline.⁴

This volume is based upon a selection of papers presented at the ‘Institutions and Business History Conference’ held at the University of Reading, 15–16 May, 1998, and organised by the editors. The editors are extremely grateful for the substantial financial assistance received from The Swedish Council for Research in the Humanities and Social Sciences (HSFR), Sweden.

This volume is based upon a selection of papers presented at the ‘Institutions and Business History Conference’ held at the University of Reading, 15–16 May, 1998, and organised by the editors. The editors are extremely grateful for the substantial financial assistance received from The Swedish Council for Research in the Humanities and Social Sciences (HSFR), Sweden.

Notes

This volume is based upon a selection of papers presented at the ‘Institutions and Business History Conference’ held at the University of Reading, 15–16 May, 1998, and organised by the editors. The editors are extremely grateful for the substantial financial assistance received from The Swedish Council for Research in the Humanities and Social Sciences (HSFR), Sweden.