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)