1. ¹School of Management, University of Texas at Dallas, Richardson, TX, USA
2. ²Department of Management, Chinese University of Hong Kong, Shatin, Hong Kong
3. ³Department of Management, California State University, East Bay, Hayward, CA, USA

Correspondence: MW Peng, School of Management, University of Texas at Dallas, Box 830688, SM 43, Richardson, TX 75083, USA. Tel: +1 972 883 2714; Fax: +1 972 883 6029; E-mail: mikepeng@utdallas.edu

Received 20 December 2004; Revised 27 February 2007; Accepted 14 May 2007; Published online 3 April 2008.

Abstract

Leveraging the recent research interest in emerging economies, this Perspective paper argues that an institution-based view of international business (IB) strategy has emerged. It is positioned as one leg that helps sustain the "strategy tripod" (the other two legs consisting of the industry- and resource-based views). We then review four diverse areas of substantive research: (1) antidumping as entry barriers; (2) competing in and out of India; (3) growing the firm in China; and (4) governing the corporation in emerging economies. Overall, we argue that an institution-based view of IB strategy, in combination with industry- and resource-based views, will not only help sustain a strategy tripod, but also shed significant light on the most fundamental questions confronting IB, such as "What drives firm strategy and performance in IB?"