Institutionalization Strategy Enhancing Firm Resources: Isomorphism from Firms and Its Strategic Implications

Abstract

The aim of this study is to provide a theoretical framework concerning how firms exert isomorphic pressures to survive and thrive in the existing market. In addition to the institutional strategies (Lawrence, 1999), the authors clarify the relationship among isomorphic pressures from firms, the value of firm resources, and sustainable competitive advantage. For this purpose, this paper reviews institutional isomorphism and relevant theories like resource based view, transaction cost theory, and resource dependency theory. It then provides propositions based on theoretical reviews and inferences. Firms are expected to strengthen their resources by exerting various isomorphic pressures: coercive, mimetic, and normative. Therefore, they are more likely to beat competitors even in the existing markets. The implications are discussed at the end of the paper. First of all, this study provides an extension to the horizon of institutionalization strategies by providing an additional viewpoint. In addition, it enlightens the importance of firm strategies based on corporal isomorphic pressures. Practitioners are recommended to consider their firms’ ability to conform other stakeholders as a significant strategic asset.