“…The investigation of the link between institutions and strategic posture is guided by institutional theory (North, 1990), strategic choice theory (Child, 1997), theory of organisational adaptation (Hrebiniak & Joyce, 1985), environmental management theory (Zeithaml & Zeithaml, 1984), resource dependency theory (Pfeffer & Salancik, 1978), theory of environmental munificence (Castrogiovanni, 1991), transaction costs theory (Rao, 2003;Williamson, 1979), theory of enabling authority (Leach, Stewart & Walsh, 1994), the theory of planned behaviour (Ajzen, 1991), cultural theory (van Heffen & Klok, 2003), organisational legitimacy theory (Deephouse & Carter, 2005;Suchman 1995), and the resource-based view of the -56 -firm (Barney, 1991). The fundamental argument is that resource-constrained MSMEs exercise their strategic posture as a form of responding or adapting to, and managing their dependence on the munificence of the external institutional environment.…”