Abstract

The authors review the history of both the study of the diversity of modern capitalism and the phenomenon itself since its initial study in the 1960s by Andrew Shonfield. Working within the framework of "new institutionalism" they identify a number of institutional forms: pure markets, hierarchical and institutional firms, state regulation, formal associations, and informal business communities and network. They then consider the impact on these different varieties of capitalism of globalization and "the new competition". They conclude that, even if certain more institutionalized forms have potentiality for superior performance, the main impact of globalization and the associated process of deregulation (especially of financial markets) is likely to be a favouring of pure market forms and the autonomy of firms. The most likely political response to this is likely to be a symbolic assertion of national sovereignty which cannot in itself reassert institutional diversity but can only impede the erection of supernational forms of governance which might be able to guarantee the viabillity of institutional forms of capitalism.