In an institution-based view of strategy, the informal rules of the game:
A)Must be avoided because global business is not a mere game.
B)Are being replaced by formal rules.
C) Often require that the firm seek to change the informal rules instead of going along with those rules.
D) Need to be understood by firms.

Question

Quizplus · Accepted Answer

In an institution-based view of strategy, understanding the informal rules of the game is crucial for the success of a firm. These rules are deeply ingrained in the political, social, and cultural fabric of a country or region and can have a significant impact on how business is conducted. Therefore, firms must be aware of these rules and learn to navigate them effectively to achieve their strategic objectives.

In an Institution-Based View of Strategy, the Informal Rules of the Game