Issues – 2020, v7, s1, 2

The Journal of Corporate Governance,  Insurance, and Risk Management 2020, Volume 7, Series 1 

Institutional distance: the construct of isomorphism relevant to multinational companies** 

Ana Krajnović *

Privredna banka Zagreb plc, Zagreb, Croatia


Article Type: Research Paper


A R T I C L E   I N F O

The institutional environment in which multinational companies act is unique and complex. It is unique in the sense that the subsidiaries of multinational companies are facing dual pressures from both the host country and the country of the parent company. Further, the complexity of the environment presumes the need for global integration and the need for the local adaptation. Although some countries are characterized by a more favourable institutional environment for establishing and expanding business, in other countries the institutional environment is a challenge for multinational companies. In this paper, the author will present the current theoretical knowledge and references in already conducted research regarding the institutional distance in the context of multinational companies and their subsidiaries.

Keywords: institutional distance, institutional environment, isomorphism, multinational companies

*Corresponding author:

Article history: Received  15 01 2020 Revised   10 02 2020 Accepted 22 03 2020

**This article was presented at the 8th International OFEL Conference on Governance, Management and Entrepreneurship. From Corporations to Social Entrepreneurs: Exploring the Different Faces of Social Innovation (April 17th – 18th, 2020, Dubrovnik, Croatia, Governance Research and Development Centre CIRU), Zagreb, pp. 163-170

Cite Article (APA): Krajnović, A. 2020. Institutional distance: The Construct of Isomorphism Relevant to Multinational Companies. The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM). 2020, Volume 7, Series 1. pp15-24

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