The impact of institutions and cognition on context: a case study approach in international entrepreneurship

Abstract

This paper suggests a framework for context. Departing from the perspective of structuration theory, we propose that cognitive processes enable agents to act within structures. Cognition is dependent on institutional configurations which range from stable to fast moving and dynamic. It is argued that the degree of the agents' embeddedness affects the cognition of the agent, which, in turn, enables the agents' abilities to act upon and influence structures in the understanding of structuration theory. Through this mechanism, context emerges. A case study to depict the way a firm engages in cross-border activities and navigates within different institutional environments is presented. We propose that cognition is the link which connects institutions to the structure/agent system. The discussion concludes that cognition affects the creation of structures that form the context in which the firm operates.