Which of the following statements about strategy and institutions is TRUE?
A)When formal institutional constraints fail, informal constraints tend to fail as well.
B)Institutions are little more than background conditions to strategic decisions.
C) The institution-based view focuses on the dynamic interaction between institutions and firms, and considers strategic choices the outcome of such interaction.
D) The institutional similarities between developed and emerging economies have propelled the institution-based view to the forefront of strategy discussions.

Question

Which of the following statements about strategy and institutions is TRUE?
A)​When formal institutional constraints fail, informal constraints tend to fail as well.
B)​Institutions are little more than background conditions to strategic decisions.
C) ​The institution-based view focuses on the dynamic interaction between institutions and firms, and considers strategic choices the outcome of such interaction.
D) ​The institutional similarities between developed and emerging economies have propelled the institution-based view to the forefront of strategy discussions.

Quizplus · Accepted Answer

The institutional-based view emphasizes the interplay between institutions and firms, and how strategic choices are influenced by institutions. This view posits that institutions provide both formal and informal constraints that affect the choices and outcomes of firms.

Which of the Following Statements About Strategy and Institutions Is