Strategic management theories and their application have taken many paths. An institution-based view is a relatively newly coined term, but the idea behind it is old. It simply means you look at sociological and economic component applicability to management when optimizing firm performance. These variables can encompass corporate ownership differences, political issues, government support, and cultural issues. The research has focused on emerging economies, but the applicability is global and gives another tool to develop strategic management efforts for firms. As firms compete globally, they must be aware of different markets and how to approach them efficiently, and this theory will help develop a framework for that purpose.
strategic management, institution-based view