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At Its Core, the Institution-Based View Focuses on How Certain

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Essay

At its core, the institution-based view focuses on how certain strategic choices are diffused from a few firms to many. Such forces of institutionalization are driven by a combination of regulatory, normative, and cognitive pillars. Think of an example of how a firm has strategically responded to an ethical challenge. Describe that challenge and indicate which of the four strategic choices given in the text you think the firm used to address that challenge. Explain why it used that type of response.


Definitions:

Core Principle

A fundamental belief or guideline that serves as the foundation for a system, program, or organization's operation.

Visionary Leadership

Involves leading an organization towards a unique and inspiring vision of the future, often characterized by innovation and risk-taking.

Coercive Power

The ability of a person to influence others' behavior by punishing or threatening punishment if they do not comply with demands or expectations.

Legitimate Power

The authority or power that is recognized and accepted within an organizational or societal structure, often based on a position of leadership or role.

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