Institutional theory, therefore, has several implications for a resource-based view of firm variation: (1) firms can be captives of their own history and make inappropriate resource decisions; (2) sunk costs can be cognitive rather than economic and lead to suboptimal resource choices; (3) cultural support for resource investments may be an important determinant of their success; (4) firms may be unwilling ratun able to imitate resources and capabilities,her than especially when those resources lack legitimacy or social approval; and (5) social influences exerted on firms reduce the potential for firm heterogeneity. These implications for resource decisions and firm heterogeneity are elaborated below at the individual, firm, and inter firm levels of analysis.