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Institutions-Based View


Submitted By clickondot
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Peng, Sun, Pinkham, and Chen









The Institution-Based View as a Third Leg for a
Strategy Tripod by Mike W. Peng, Sunny Li Sun, Brian Pinkham, and Hao Chen

Executive Overview
This article identifies the emergence of the institution-based view as a third leading perspective in strategic management (the first two being the industry-based and resource-based views). We (a) review the roots of the institution-based view, (b) articulate its two core propositions, and (c) outline how this view contributes to the four fundamental questions in strategy. Overall, we suggest that the institution-based view represents the third leg of a strategy tripod, overcomes the long-standing criticisms of the industrybased and resource-based views’ lack of attention to contexts, and contributes significant new insights as part of the broader intellectual movement centered on new institutionalism.


s part of a broader intellectual movement centered on new institutionalism throughout the social sciences in recent decades (DiMaggio &
Powell, 1983, 1991; North, 1990, 2005; Scott,
1987, 1995, 2008b; Williamson, 1975, 1985), strategic management researchers have increasingly realized that institutions are more than background conditions (Oliver, 1997; Peng & Heath,
1996). Instead, “institutions directly determine what arrows a firm has in its quiver as it struggles to formulate and implement strategy” (Ingram & Silverman, 2002, p. 20, emphasis added). Consequently, an institution-based view of strategic management has emerged (Peng, 2002, 2003). More important, this view has been argued to be one of

We thank the AMP editor, Garry Bruton, and two anonymous reviewers for excellent guidance and encouragement, Dick Scott for helpful written comments, and Joseph Clougherty and Klaus Meyer for interesting discussion. This

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