Institutional Capital: Competitive Advantage In Light Of The New Institutionalism In Organization Theory

Neoinstitutional organization theory contains an important message for strategic management: A firm’s existence and competitive advantage is strongly affected by its institutional environment. However, the strategic management literature disregards the role of the institutional environment when modeling competitive advantage. This paper develops an integrative model of competitive advantage that draws on prevailing concepts in strategic management and neoinstitutional theory. The model distinguishes three types of institutional capital: cognitive, normative, and regulative capital. The implications for generating and managing institutional capital are discussed.

[1]  Prozesse Organisationalen Lernens , 1996 .

[2]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[3]  C. Oliver.  STRATEGIC RESPONSES TO INSTITUTIONAL PROCESSES , 1991 .

[4]  Sten Jönsson.  Institutions and Organizations , 1997 .

[5]  J. Child.  Organizational Structure, Environment and Performance: The Role of Strategic Choice , 1972 .

[6]  O. Williamson.  Comparative Economic Organization: The Analysis of Discrete Structural Alternatives , 1994 .

[7]  L. Zucker.  Institutional Theories of Organization , 1987 .

[8]  K. R. Conner.  A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm? , 1991 .

[9]  Matthew S. Kraatz,et al.  A diametric forces model of strategic change: Assessing the antecedents and consequences of restructuring in the higher education industry , 1993 .

[10]  Pamela S. Tolbert.  Institutional Sources of Organizational Culture in Major Law Firms , 1988 .

[11]  Peter W. Roberts,et al.  Integrating Transaction Cost and Institutional Theories: Toward a Constrained-Efficiency Framework for Understanding Organizational Design Adoption , 1997 .

[12]  R. Bresser.  Unternehmerische Innovationen durch Teufelskreise , 1987 .

[13]  C. Oliver.  SUSTAINABLE COMPETITIVE ADVANTAGE: COMBINING INSTITUTIONAL AND RESOURCE- BASED VIEWS , 1997 .

[14]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[15]  David J. Collis,et al.  Research Note: How Valuable are Organizational Capabilities? , 1994 .

[16]  Dieter Sadowski,et al.  Organisational Capital: The Power of an Economic Metaphor: Organisational Capital in German Establishments , 2003 .

[17]  D. Hambrick,et al.  Upper Echelons: The Organization as a Reflection of Its Top Managers , 1984 .

[18]  Mark C. Suchman.  Managing Legitimacy: Strategic and Institutional Approaches , 1995 .

[19]  L. Zucker.  The role of institutionalization in cultural persistence. , 1977 .

[20]  Dennis A. Gioia,et al.  Multiparadigm Perspectives on Theory Building , 1990 .

[21]  Paul C. Godfrey,et al.  THE PROBLEM OF UNOBSERVABLES IN STRATEGIC MANAGEMENT RESEARCH , 1995 .

[22]  Daniel H. Kim.  The Link between individual and organizational learning , 1997 .

[23]  Tony S. Frost.  The geographic sources of foreign subsidiaries' innovations , 2001 .

[24]  Greg Young.  Comment: The Resource-Based View of the Firm and "Austrian" Economics , 1995 .

[25]  Raghu Garud,et al.  CHARGING COMPETITIVE DYNAMICS IN NETWORK INDUSTRIES: AN EXPLORATION OF SUM MICROSYSTEMS' OPEN , 1993 .

[26]  M. Porter.  Industry Structure and Competitive Strategy: Keys to Profitability , 1980 .

[27]  James D. Westphal,et al.  Accounting for the Explanations of CEO Compensation: Substance and Symbolism , 1995 .

[28]  W. Scott,et al.  INSTITUTIONAL THEORY AND INSTITUTIONAL CHANGE: INTRODUCTION TO THE SPECIAL RESEARCH FORUM , 2002 .

[29]  N. Fligstein,et al.  The spread of the multidivisional form among large firms, 1919–1979 , 1985 .

[30]  Matthew S. Kraatz,et al.  Modeling the dynamics of strategic fit: a normative approach to strategic change , 2000 .

[31]  Robert E. Hoskisson,et al.  BOARD OF DIRECTOR INVOLVEMENT IN RESTRUCTURING: THE EFFECTS OF BOARD VERSUS MANAGERIAL CONTROLS , 1993 .

[32]  Pamela S. Tolbert,et al.  Institutionalization and Structuration: Studying the Links between Action and Institution , 1997 .

[33]  D. North,et al.  Economic performance through time , 2012 .

[34]  John W. Meyer,et al.  Institutionalized Organizations: Formal Structure as Myth and Ceremony , 1977, American Journal of Sociology.

[35]  Robert N. Stern,et al.  The External Control of Organizations: A Resource Dependence Perspective. , 1979 .

[36]  O. Williamson,et al.  STRATEGY RESEARCH: GOVERNANCE AND COMPETENCE PERSPECTIVES , 1999 .

[37]  J. Schumpeter.  Theorie der wirtschaftlichen Entwicklung , 1913 .

[38]  W. Scott.  The Adolescence of Institutional Theory. , 1987 .

[39]  C. Hennemann.  Organisationales Lernen und die lernende Organisation: Entwicklung eines praxisbezogenen Gestaltungsvorschlages aus ressourcenorientierter Sicht , 1997 .

[40]  Matthew S. Kraatz,et al.  DIAMETRIC FORCES MODEL OF STRATEGIC CHANGE: ASSESSING THE ANTECEDENTS AND CONSEQUENCES OF , 1993 .

[41]  Mark S. Granovetter.  Economic Action and Social Structure: The Problem of Embeddedness , 1985, American Journal of Sociology.

[42]  Robert Jacobson,et al.  The “Austrian” School of Strategy , 1992 .

[43]  R. Garud,et al.  Changing competitive dynamics in network industries: An exploration of sun microsystems' open systems strategy , 1993 .

[44]  David L. Deephouse.  To Be Different or to Be the Same? It's a Question (and a Theory) of Strategic Balance , 1998 .

[45]  David L. Deephouse,et al.  Does Isomorphism Legitimate? , 1996 .

[46]  P. Schoemaker,et al.  Strategic assets and organizational rent , 1993 .

[47]  C. R. Hinings,et al.  Organizational Diversity and Change in Institutional Theory , 1998 .

[48]  Robert A. Burgelman.  A Model of the Interaction of Strategic Behavior, Corporate Context, and the Concept of Strategy , 1983 .

[49]  Thomas L. Wheelen,et al.  Strategic Management and Business Policy , 1983 .

[50]  B. Borys,et al.  Hybrid Arrangements as Strategic Alliances: Theoretical Issues in Organizational Combinations , 1989 .

[51]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[52]  W. Powell.  Expanding the Scope of Institutional Analysis , 1991 .

[53]  Peter Walgenbach.  Neoinstitutionalistische Organisationstheorie — State of the Art und Entwicklungslinien , 2002 .

[54]  Joseph T. Mahoney,et al.  The resource-based view within the conversation of strategic management , 1992 .

[55]  A. Picot,et al.  Organisation: eine ökonomische Perspektive , 1998 .

[56]  K. Eisenhardt.  Agency- and Institutional-Theory Explanations: The Case of Retail Sales Compensation , 1988 .

[57]  C. Argyris.  Strategy, change, and defensive routines , 1985 .

[58]  John W. Meyer,et al.  Institutional Environments and Organizations: Structural Complexity and Individualism , 1994 .

[59]  Pamela R. Haunschild.  Interorganizational imitation: The impact of interlocks on corporate acquisition activity , 1993 .