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Institutional Advantage

Authors

  • Xavier Martin

    Corresponding author
    1. School of Economics and Management, Department of Organization and Strategy and CentER, Tilburg University, Tilburg, The Netherlands
    • Correspondence to: Xavier Martin, School of Economics and Management, Department of Organization and Strategy, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, The Netherlands. E-mail: x.martin@tilburguniversity.edu

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Abstract

Is there such a thing as institutional advantage—and what does it mean for the study of corporate competitive advantage? In this article, I develop the concept of institutional competitive advantage, as distinct from plain competitive advantage and from comparative institutional advantage. I first identify and synthesize insights from strategy and institutional theories. I then arrive at a definition of institutional advantage and develop theory about its predictors, emphasizing a firm's interaction with institutions over its life cycle. This analysis highlights foreign direct investment and multinational enterprise as prime venues for insights into institutional advantage from a strategic perspective.

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