The concept of institutional complementarity is central to the recent debate on the
internal logics of production regimes, redirecting our attention from the effects
of single institutions to interaction effects. The article provides definitions of
complementarity, coherence and compatibility and discusses the ways in which different
authors describe interaction effects between corporate governance and industrial
relations. It turns out that some of the interaction effects are actually direct
causal links rather than effects deriving from complementarity. It is argued that
complementarity may be caused by both structural similarity and incoherence, and
that the concept provides only weak predictions with respect to institutional change.
The article is followed by comments from Bruno Amable, Robert Boyer, Colin Crouch,
Peter A. Hall, Gregory Jackson, Wolfgang Streeck, and an epilogue by Martin Höpner.