Abstract
Chapter 11 examines different institutional systems in developed, developing, emerging, and transitional economies and draws implications for the design and structure of nonmarket strategies. It notes that institutional environments differ considerably around the world, and what works in one context is unlikely to succeed elsewhere. Also, differing institutional conditions pose both challenges and opportunities for firms. For instance, institutional voids can be viewed as a positive or a negative, depending on company culture, resource, and market. Moreover, these international institutional differences have important implications for both market and nonmarket strategies and the relationships between the two. Some environments limit or curtail certain practices or strategies and, therefore, reduce the range of strategic options available to the firm. Companies typically have a range of potential strategic initiatives that are tailored to the specifics of the institutional environment and make the most of company resources and capabilities.