This study employs both institutional theory and RBV to develop its conceptual framework and hypotheses. Institutional theory examines the influence of external pressures on the firm (Hirsch, 1975) and how enterprises adopt policies and implement strategies that are legitimate within their organizational fields (Scott and Christensen,1995). Organizations consider industry norms, firm tradition, and management fads,among other concerns, to formulate their strategies (Meyer and Rowan, 1977; Zucker,1987). There are three major sources of external pressure: functional, political, and social (Oliver, 1992) which force organizations to implement appropriate strategic actions (Dacin et al., 2002)