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.