Transnational corporations shaping institutional change: the case of English law firms in Germany

James R. Faulconbridge and Daniel Muzio

Journal of Economic Geography, 2015, vol. 15, issue 6, 1195-1226

Abstract: Questions remain about the factors that influence the ability of transnational corporations (TNCs) to shape processes of institutional change. In particular, questions about power relations need more attention. To address such questions, this article develops a neo-institutional theory-inspired analysis of the case of English law firms and their impacts on institutional change in Germany. The article shows that the shaping of the direction of institutional change by English legal TNCs was a product of conjunctural moments in which local institutional instability combined with the presence, resources and strategies of the TNCs to redirect the path of institutional evolution. This draws attention to the need to go beyond the TNC and its resources and to consider the way a diverse array of local actors and their generating of instability in existing institutional structures influence the ability of TNCs to become involved in processes of institutional change in particular, conjunctural moments in time.

Date: 2015
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Journal of Economic Geography is currently edited by Jorge De la Roca, Stephen Gibbons, Simona Iammarino, Amanda Ross and James Faulconbridge

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