The Variety of Capitalism

The perspective argues that industry conditions determine a firm’s performance and strategy and is regarded as a leading perspective on international business (Peng et al., 2017). Remuneration is a key component that influences the model. Institutions that provide high compensation attract highly skilled personnel as compared to lowly paying institutions. As a result, the level and quality of the outcome are based on the quality of the workforce making well-paying organizations more competitive. Institution-based view of international business emphasizes on remuneration as a means of attracting highly qualifies employees as a strategy to gain a competitive advantage.

Varieties of capitalism

Over the past two decades, the idea of the variety of capitalism (VOC) which was established after observation of differences between the economic development of the US, the UK, Germany, and Japan in 1980’s (Hall 2015). The fall of the wall of Berlin marked the end of the East Germanys communist government. Revolutions swept out through the eastern block states overthrowing the communist dictatorship and replaced it with democratic governments paving way hyper- globalists (Tramošljanin, 2017).

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