Globalization, multinationals and institutional diversity

This article aims to explore the impact of globalization and in particular multinationals on diversity within national varieties of capitalism. Do the actions of multinationals create more diversity within national systems, do they reduce diversity or do they have relatively little impact on diversity within national systems? The article argues that there are distinctive structures of institutional diversity across different national systems. Therefore, the question is not how do MNCs impact on institutional diversity per se but how do they impact on these different structures of diversity? In order to develop this argument, the paper also differentiates types of multinational. The article uses distinction between market-seeking, resource-seeking, efficiency-seeking and strategic asset-seeking in order to identify a range of different MNC activity across manufacturing, professional and financial sectors. These different sorts of MNC activity vary across time and contexts in terms of their significance. The article looks in detail at four different models of capitalism and examines how the entry of different sorts of multinationals with distinctive objectives impacts on the relationships between key social actors which underpin and reinforce these models. In this way, it suggests how institutional diversity within different types of capitalism may evolve under the impact of MNCs and globalization