The Relationship between Institutional Capital and Competitive Advantage: Literature Review and Future Research

Abstract

The conception of institutional capital was first raised by Oliver, integrating resource-based view with institutional theory, which provided new theoretical explanation for the source of competitive advantage. Through extensive literature review, this paper sorts out the definition of institutional capital and explores the paths form institutional capital to competitive advantage based on four characteristics of strategic resources. It points out the directions for future research and puts forward a logic framework and theoretical innovation space in Chinese context.

Institutional Capital on Trade-Marketing and Environmentally Sustainable Development Policy Making A Research Model Based on Critical Analysis of Nafta

“…The new institutional economics (NIE) supports the notions of social capital related to issues of trust (Raiser 1997 andRaiser et al 2001) (Huang and Cao, 2016). The presence of institutional capital in the economic production and exchange interaction contexts justifies the economic advantages (Kaji, 1998).…”

Sustainable Competitive Advantage of SMEs through Resource and Institutional-Based Management: An Empirical Study of Batik SMEs in Central Java, Indonesia

“…Alston & Gillespie, 1989;Singh, 2008;Petrovic & Milos, 2011;Huang & Cao, 2015): (a) higher selling price -this is presumably the most important benefi t from the advent of manufacturer conjunction; (b) economic scale -taking collective action on the same timeline will save certain expenses or improve effi ciency in a certain process; (c) external economies provide advantages including the improvement of member productivity due to information distribution; (d) non-economic advantages -the cooperative movement places signifi cant emphasis on non-economic advantages. The condition of perfect competition is the existence of an equal number of sellers and buyers, and both act as price makers.Many developing countries are characterized by weak governance environment, limited availability of information, high costs of coordination, and high risk(Dorward, Poole, Morrison, Kydd & Urey, 2003)…”