Institutional theory and emerging markets

Yusaf H. Akbar

Chapter 2 in A Research Agenda for Emerging Markets, 2026, pp 19-32 from Edward Elgar Publishing

Abstract: Institutional theory offers a core perspective for an understanding of how firms operate and compete in developing countries, where institutional development is often weak or opaque. For firms present in developing countries, these contexts present challenges like poor intellectual property protection, weak contract enforcement, and hard-to-predict government processes. These institutional voids compel firms to adjust their strategies, at times attempting to fill gaps themselves, as sources of competitive advantage built in developed economies are weakened. Extant scholarship places institutional factors as a “third leg” of the strategy tripod, alongside industry conditions and resources, highlighting the importance of non-market strategies. This chapter explores institutional voids, isomorphism, and legitimacy, examining how these concepts shape multinational enterprise strategies in diverse emerging market contexts.

Keywords: Institutional Theory; Institutional Voids; Developing Countries; Non-market Strategy; Multinational Enterprises; Legitimacy (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035331574
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