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The goal of this research is to conceptually unlink the relationship of MNEs, institutions and economic development, in order to shed light on how MNEs contribute to a country’s institutional development and its economic development. To achieve this goal, this paper employs a coevolutionary approach, adopting and nurturing MNEs, institutions and economic development. The paper’s goal is divided into two steps: The first step consists of the synthesis of the literature that is relevant with the coevolutionary approach, while the second involves the application of the synthesis to the emerging economy of Turkey for the period 1990–2011. Building on this foundation, the present exploratory paper’s findings indicate the following: First, economic development is a function of a dynamic process which encapsulates all the regulative and normative aspects of an economy and the interaction of exogenous and endogenous forces. Second, the Turkish economy, during the 1990– 2001 and the 2008–2011 periods experienced institutional avoidance. Furthermore, during 2002– 2007, the economy underwent a profound co–evolution process, which was accompanied with signs of institutional adaptation.

A Managerial Coevolution Perspective in an Emerging Economy: Evidence From Turkey