Mauro Guillen, Dr. Felix Zandman Professor of Management at Wharton School and Associate Editor of Administrative Science Quarterly
Location:
Gerri C. LeBow Hall722
3220 Market Street
Philadelphia, PA 19104
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ABSTRACT
We investigate how state capacity affects institutional adoption and decoupling as normative, coercive, and mimetic isomorphic pressures unfold. We expect state capacity—defined as the administrative ability to formulate and implement policy—to reduce the effect of normative and mimetic isomorphism, to increase the impact of coercive isomorphism, and to lessen decoupling between adoption and desired outcomes. We test these predictions using a unique dataset on the adoption of minority shareholder legal protections and the development of the stock market in 78 countries between 1970 and 2011. We find evidence consistent with the moderating effects of state capacity on isomorphism and on lessening policy-practice decoupling.