Strategic Responses to Deregulation: An Institutional Theory Perspective

Abstract

Firms adopt distinct strategic orientation in response to change in environment. Deregulation is a drastic change in firm’s environment. This paper attempts to explain strategic orientation exhibited by firms in response to deregulation from an institutional theory perspective. Integrating propositions have been developed to examine congruence of institutional theory concepts of coercive and mimetic isomorphism with stylized strategic orientation. Unique methodology of corroborating propositions with empirical findings from past studies was adopted. While partial support was found for propositions, the inferences drawn provide alternative explanations for results of empirical studies and for expanding the boundaries and scope of institutional theory.