This thesis aims to review and synthesise existing journal articles investigating the intersection of culture and institutions to answer the question of how and in which areas theory of culture and institutions have together been applied. In the form of a systematic literature review, we include articles that were divided into one of eight categories, namely economics; historical events and development; public sector; sociology and gender studies; international business; corporate governance; ethics, CSR and reputation; and finance.
Over the last few decades, an increasing scholarly interest in the topics of culture and institutions has developed and led to a stark rise in published related work. Especially since the early 2000s, the two topics have gained significant ground in a variety of academic disciplines and caused an increase of available literature, which is also confirmed by the results of our search process. Cultural or institutional theory fits into several scientific fields ranging from psychology and sociology to law and economics. Views on culture and institutions vastly differ.
While some academics see them primarily as endogenous, others perceive them as exogenously given and representing the equilibrium of a game. Bowles (1998), on the contrary, views them as exogenous too, although they lead to the creation of endogenous preferences in society. A change of cultural and institutional settings, however, can be both exogenous and endogenous. In addition, research is also still not completely conclusive about which and how variables affect the formation of culture and institutions. Likely effects stem from geographic factors, language, education, war, pandemics and available technology, amongst others.
On the other hand, theory of new institutional economics highlights the implication of path dependence for both concepts. Path dependence suggests that history matters for current and future decisions and potential outcomes. Similarly, random events, in contrast to systematic forces, can have significant impacts. It so implies a certain lock-in effect created by prior events which can figuratively speaking, make it challenging to leave an already adopted path even if there exist superior ones. Also, because culture and institutions interact, they create space for multiple stable outcomes.
Table of Contents
1. Introduction
1.1 Overview
1.2 Research objectives and questions
2. Concepts and measurements
2.1 Culture
2.2 Institutions
3. Research design and methodology
4. Literature review
4.1 Economics
4.2 Historical events and development
4.3 Public sector
4.4 Sociology and gender studies
4.5 International business
4.6 Corporate governance
4.7 Ethics, CSR and reputation
4.8 Finance
4.9 Summary of the results
5. Discussion
5.1 Findings of the literature review
5.2 Future research
5.3 Limitations
6. Conclusions
Research Objectives and Themes
The primary objective of this thesis is to systematically review and synthesize existing scholarly literature that examines the intersection of culture and institutions. By deconstructing how these two pillars influence one another and impact third-party factors such as economic performance, entrepreneurship, and corporate behavior, the work aims to uncover the complex mechanisms driving these interactions and identify prevailing research trends.
- Theoretical and empirical nexus of culture and institutions
- Mechanisms of mutual feedback and path dependence
- Cross-disciplinary application of cultural and institutional theory
- Impact on economic development, governance, and social outcomes
- Synthesis of research methodologies in cultural economics and international business
Excerpt from the Book
1.1 Overview
Over the last few decades, an increasing scholarly interest in the topics of culture and institutions has developed and led to a stark rise in published related work. Especially since the early 2000s, the two topics have gained significant ground in a variety of academic disciplines and caused an increase of available literature, which is also confirmed by the results of our search process. Cultural or institutional theory fits into several scientific fields ranging from psychology and sociology to law and economics.
Views on culture and institutions vastly differ. While some academics see them primarily as endogenous (e.g., North, 1990), others perceive them as exogenously given and representing the equilibrium of a game (e.g., Greif, 2006). Bowles (1998), on the contrary, views them as exogenous too, although they lead to the creation of endogenous preferences in society. A change of cultural and institutional settings, however, can be both exogenous (e.g., shocks, like revolutions, political coups and annexations of new territory) and endogenous (e.g., slow change over time; Ogilvie, 2007). In addition, research is also still not completely conclusive about which and how variables affect the formation of culture and institutions. Likely effects stem from geographic factors (climate, resources, food, etc.), language, education, war, pandemics and available technology, amongst others (Alesina & Giuliano, 2015). On the other hand, theory of new institutional economics highlights the implication of path dependence for both concepts (North, 1990). Path dependence suggests that history matters for current and future decisions and potential outcomes. Similarly, random events, in contrast to systematic forces, can have significant impacts (David, 1985). It so implies a certain lock-in effect created by prior events which can figuratively speaking, make it challenging to leave an already adopted path even if there exist superior ones. Also, because culture and institutions interact, they create space for multiple stable outcomes (Bowles, 1998). In sum, as these statements suggest, culture and institutions have the potential to significantly influence not only each other but also many other outcomes.
Summary of Chapters
1. Introduction: Introduces the growing scholarly relevance of the intersection between culture and institutions, outlines the divergent academic views, and defines the core research objectives.
2. Concepts and measurements: Discusses the definitions, dimensions, and empirical implementation of culture and institutions in academic research.
3. Research design and methodology: Details the systematic literature review process, including search strategies, criteria for inclusion, and the categorization of selected articles.
4. Literature review: Provides a thematic synthesis of articles classified into eight categories, ranging from economics and history to corporate governance and finance.
5. Discussion: Evaluates the definitions used, synthesizes the findings regarding the intersection of the two concepts, suggests directions for future research, and addresses study limitations.
6. Conclusions: Summarizes the contributions of the thesis and reiterates the significance of studying the nexus between culture and institutions for future scientific inquiry.
Keywords
National culture, institutions, social interaction, path dependence, economic development, corporate governance, systematic literature review, cultural economics, mutual feedback, social capital, institutional voids, corporate social responsibility, behavioral incentives, cross-national studies, institutional change.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on reviewing and synthesizing existing academic literature to understand how cultural and institutional theories interact and are jointly applied across various scientific fields.
What are the primary thematic areas covered?
The work covers economics, historical events, the public sector, sociology and gender studies, international business, corporate governance, ethics/CSR, and finance.
What is the central research question?
The overarching research question investigates how and in which areas cultural and institutional theory have been jointly applied in prior scholarly literature.
Which methodology is utilized?
The author applies a systematic literature review, using specified search engines and criteria to identify, categorize, and synthesize high-quality peer-reviewed articles.
What does the main body address?
The main body examines the nexus of culture and institutions, exploring their mutual feedback effects, their influence on social and economic outcomes, and their role in determining behavioral incentives.
Which keywords best characterize the research?
Key terms include national culture, institutions, social interaction, path dependence, economic development, and corporate governance.
How do culture and institutions interact in the context of economic development?
They act as complementary forces that create and shape preferences; formal institutions regulate economic activity, while culture can influence the effectiveness of these rules or even act as a substitute for them.
What role does path dependence play in these dynamics?
Path dependence implies that historical cultural and institutional events create a "lock-in" effect, making it difficult for societies or organizations to shift to superior arrangements even when they exist.
Why is the distinction between societal and organizational culture important?
The thesis focuses on national or societal culture because organizational culture operates under different theoretical frameworks and empirical constraints, which would exceed the intended scope of the analysis.
- Arbeit zitieren
- Alexander Staffel (Autor:in), 2020, Culture, institutions and their interlinkages. How are theories of culture and of institutions applied together?, München, GRIN Verlag, https://www.grin.com/document/1191496
