RESEARCH METHODS

GROUP MEMBERS QASIM ALI CHEEMA

ZUHAIR AKBAR BUTT

HASSAN IJAZ

INSTITUTIONAL BASED VIEW AS A THIRD LEG FOR A STRATEGY TRIPOD

(Mike w.peng, sunny li sun, brian pinkham, and chen)

INDUSTRY BASED VIEW

THE VIEW THAT EXTERNAL FACTORS ARE MORE IMPORTANT THEN THE EXTERNAL FACTORS WHILE STRATEGY MAKING.

Resourced based view

All the internal factors of the organization matter more then the external factors while making the strategy.

Institutional based view

This view talks about the formal and informal environment of the organization and focus on the international business strategy in the emerging economies

(Peng et al,2008)

Institutional based view

Formal

Informal

The rules and regulations and the legislations of a specific geographical area. Which a firm have to follow to go globally.

Culture Norms Behaviour

Answering the four strategic questions

How firms differ? How firms behave? What determines the scope of the firm? What determines the success and failure of firms around the globe?

PROPOSITIONS 1

Managers and firms rationally pursue their interest and make strategic choices within the formal and informal framework.

PROPOSITION 2

While formal and informal institutions combine to govern firm behavior, in situations where formal constraints are unclear or fail, informal constraints will play a larger role in reducing uncertainty, providing guidance, and conferring legitimacy and rewards to managers and firms.

VARIABLES
INDEPENDENT VARIABLES

DEPENDENT VARIABLES

STRATEGICS CHOICES

ORGANIZATIONS INSTITUTIONS

HYPOTHESIS

H1 If the institutional based view added to strategic management it makes the firms more flexible globally H2 Institutional based view has an important role in the international business policy H3 Institutional based view provides the third leg to the strategy tripod H4 Whether institutional based view increased the essence of strategic management

SCEMETIC DIAGRAM
ORGANIZATIONS STRATEGY CHOICES

INSTITUTIONS

FINDINGS

Institutional based view has younger age of approximately ten years within the strategy literature. Overall the rise of the need of institutional based view can be seen through the internal and external forces. How they both need the institutional based view for the success and how much this increase the efficiency of the organizations. The researchers must understand the opportunities, strengths and weakness, threats to work on the article more.

CITATIONS

(Peng,

Sun, Pinkham, & Chen, 2009)

RESEARCH GAP

There is research gap in the article which is how the institutional based variables matter. What are the basic variable in the institutional based view on the bases it can add more essence to the article.

MOST CITED AUTHOR & JOURNAL

MIKE W.PENG

ACADEMY OF MANAGEMENT