ABSTRACT
Research summary We offer a novel view of formal institutions as a layer cake, suggesting a structural relationship between higher-level and lower-level institutions. In this context, inter-layer conflict imposes complex pressures on multinational corporations (MNCs). These tensions have become more rife amid the growth in global connectedness and the commensurate increase in the importance of within-country differences. Drawing on political science and economic geography research, we introduce regime type and the distribution of economic resources as conditions under which inter-layer conflict is most likely to arise. We leverage two caselets to illustrate the inter-layer conflict and the novel response options MNCs can deploy. Our perspective advances the theoretical understanding of intra-national institutional diversity, laying the groundwork for future research at the nexus of institutional theory and global strategy. Managerial summary Firms often encounter opposing pressures in their operating environments because institutions within the nation-state impose misaligned policies. Despite acknowledging that such interactions exist, firms traditionally did not make it an integral part of their strategy. We demarcate how formal institutions cascade, forming a layer cake of relevant influences whereby the structural relationship between higher-level and lower-level institutions may impose complex pressures when in conflict. We turn to political science and economic geography literatures for explanations of when such conflict is most likely and offer a window into the responses by multinational firms using caselets within the COVID-19 pandemic context. We offer new avenues for research on the ways in which institutions function to affect multinational firms in a global economy increasingly characterized by institutional complexity.
ABSTRACT
This article gives an initial overview of the explanatory power of established approaches in comparative political science of various lockdown strategies in connection with the COVID-19 pandemic in 35 democracies. In a macro-comparative statistical analysis of the first wave of the pandemic, I test partisan and veto player theories. I distinguish two phases of the first wave of the COVID-19 pandemic, which show distinct patterns of political impacts. In the first phase of implementing lockdown strategies, central governments were relatively uncontested and partisan theory has strong explanatory power. In the second phase of lifting lockdowns, party differences lose relevance, but veto players have a strong influence during this time. The analysis shows that political science theories are useful for analysing political processes not only under normal conditions but also in extreme social crises. Moreover, it provides deeper insights into the democratic decision-making process of advanced democracies in exceptional situations. [ FROM AUTHOR] Copyright of International Political Science Review is the property of Sage Publications, Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)