Working the system: Toward a theory of cultural and institutional competence

Globalization - assisted by new information and communication technologies (ICTs) - is believed to facilitate convergence to a market order. We examine this belief by distinguishing between cultures and institutions. The former generate semantic fields within which the latter emerge and with which they interact. We draw on a conceptual framework, the Information-Space (I-Space), to describe semantic fields, to locate institutions within these fields, and to yield distinct sectors and organizational types. We also look at how ICTs modify semantic fields as well as the distribution of institutions interacting within them. Then, focusing on capital sourcing, we apply our analysis to China's evolving business systems. We conclude by exploring the theoretical and policy implications of our findings.