New Research Directions in the Institution-Based View

Abstract

This paper points out new directions for the deepening and broadening of the institution-based view, by drawing on three streams of research with which I have been involved recently: (1) outward foreign direct investment from emerging economies, (2) bankruptcy laws and entrepreneurship development, and (3) institution-based research focusing on Africa. Such deepening has been accomplished by enhancing our institutionbased understanding of foreign direct investment with a focus on emerging multinationals, while broadening has been done both substantively by probing into the impact of bankruptcy laws on entrepreneurship development around the world and geographically by calling for enhanced research attention on Africa via an institution-based lens.

Natural resource endowment and firm performance: The moderating role of institutional endowment

“…Our study, therefore, contributes to strategic management in four major ways. First, by testing the dynamic multilevel view of institutions recently suggested as influencing firm performance, we empirically validate conceptual propositions of natural resource dynamics (Sachs, ) and institutional and resource dynamics (Lazzarini, ; Musachio, Lazzarini, & Aguilera, ; Peng, ). Zoogah et al (, p. 12) indicate that “the African context is a configuration or bundle of exogenous and endogenous stimuli that interactively Influences management of organizations.” Indeed, some scholars argue that the complexity and uncertainty of the African context leads to dynamics within and across national and firm levels (Chironga, Leke, Lund, & van Wamelen, ; Collier, ; Dia, ; Hyden, ; Mbaku, ).…”

“…Since the 1970s, institutional theory has become vibrant in sociology, accounting, economics, and political science and has transformed areas of management, particularly strategy, international business, and entrepreneurship (Peng, ; Peng et al, ; Scott, ; Tihanyi, Devinney, & Pedersen, ). As a result of the multidisciplinary foci, there are a number of definitions, perspectives, frameworks, terrains, and terminologies leading to some confusion (Peng et al, ).…”

“…However, there are overlaps across the disciplines such that some combine both economic and sociological perspectives (Scott, ; also see Zoogah et al, , in the African context). In order to distinguish the institutional perspective in the management field, Peng draws on “the best available insights from the institutional literature, regardless of the disciplinary background” (Peng, , p. 276) “to differentiate from existing work in economics and sociology” to propose the institution‐based view that (Peng, , p. 75).…”

“…The compensating structures of formal and informal institutions thus shape the decisions and mind‐set of managers in the extractive industry. Lastly, institutions generally determine the success and failure of firms (Peng, ; Scott, ), including those in Africa (Peng, ). One reason is that institutional mechanisms not only operate differently in the countries, but also interact with the strategic choices of the organizations (Zoogah et al, ).…”

“…It discusses the interactive processes by which institutions and resources influence organizational effectiveness. Organizations play a central role in economic development (Bloom, Genakos, Sadun, & van Reenen, ), and institutions often regulate their behaviors (Peng, ; Scott, ).…”