ways. Let us see how the ‘macro’ end of institutionalism can be formulated, as
an attempt to systematize institutional differences between socio-economic
settings.
Conceptually most comprehensive are the typologies provided by Richard
Whitley (2002) who follows an institutionalist approach to map differences
between societies. Everything hinges on the term business systems, and a business
system is that collection of institutions in an economy and society that serve to
shape economic transactions, cooperation and control inside and between busi-
ness organizations, including associations, trade unions, governmental agencies
and other non-enterprise organizations. The primary characteristics of business
systems are shown in Table 5.2, following Whitley (2002: 179).
Business systems are therefore not only characterized by typical ways of
organizing and generating human resources in enterprises. They include
market structures, property and industrial relations, at lower and higher levels
of aggregation. In this respect, the business system literature overlaps with the
‘varieties of capitalism’ literature, and it is notably important for human
resources through the link with industrial relations (cf. Chapter 16). The busi-
ness systems concept allows us to extend comparisons to levels above and
beyond the primary cores of organizations, into governance and industrial,
political and wider social structures. The following typology puts forward link-
ages between different institutional dimensions.- Fragmented business systems are dominated by small owner controlled firms
engaged in adversarial competition. Short-term results orientation abounds,
Cross-national Differences in Human Resources 129Characteristics of business systems
A Ownership relations
1 Primary means of owner control (direct, alliance and market contracting)
2 Extent of ownership integration of production chains
3 Extent of ownership integration across sectors
BNon-ownership coordination
1 Extent of alliance coordination of production chains
2 Extent of collaboration between competitors
3 Extent of alliance coordination across sectors
CEmployment relations and work management
1 Employer–employee interdependence
2 Delegation to, and trust of, employees (Taylorism, task performance
discretion, task organization discretion)
Source: Whitley, 2002: 179
TABLE 5.2