The challenges of teaching strategic management: Including the institution based view

Dealing with the institutional differences is increasingly important in the globalizing world economy. While an Institutional Based View (IBV) is gaining prominence in strategic management scholarship, it is under-represented in strategic management courses. The resource based view (RBV) and Industrial Organization Economics (IO) commonly represented by Porter's Five Forces, remain the significant theories within strategic management courses in the U.S. We summarize the tenants of the Institutional Based View, demonstrate how it relates to the Resource Based View and Industrial Organization Economics and present an experiential exercise for introducing basic aspects of the IBV in the strategic management classroom.