There is a simple truth in international business: All else being equal, the more similar the host country abroad to the home country of a firm, the more likely is success. It is a lot easier, for instance, for a Spanish firm to do well in Portugal than in Switzerland.

For firms and internationally active managers, this places a premium on knowing just how different markets abroad are. In addition, it is helpful to know what drives these differences so suitable adjustment strategies can be devised and implemented.

Exploring these questions has been a central theme of a rich and growing literature about “national business systems” and “varieties of capitalism.” In our paper, “Mapping the business systems of 61 major economies,” my five co-authors* and I provide the currently most comprehensive overview and categorization of differences in the ways of doing business.

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