Institutionalisation of Management Practices and the Transfer of Management Know-How

The concept ‘institution’ is one of the difficult theoretical constructs that provokes continuous attempts for a definition. In general, it implies that institutions are social formations which are culturally bound, and regulate the human activities in different societies. In this paper we will make an attempt to look at some current definitions, and to derive at a more comprehensive definition of the boundaries and the dimensions of the concept of institutions in relation to the economic activities performed in a society. Japanese management practices are used as an illustration of the application of our analytical framework. We introduce a new theoretical model for the study of Japanese management practices as an elaboration on the conceptual framework of management systems used by Pascale & Athos (1981). This model encompass the major elements that construct management practices such as: hard elements (strategy, structure, and systems), and soft elements (skills, style, staff, and shared goals). We will look at the way these elements have been conceptualised in the literature for Japan. We analyse the way Japanese practices have evolved over time, and the national institutions that have served as a vehicle for these developments