The Mechanism Analysis Of The Origin Of Competitive Advantage In Institution-based View

With China’s economy suffering through great variation in the transformation period, the characteristic of the institution pressed the enterprises to make more efforts to meet the requirements of the institution subjects, that is, the legitimacy needs to reach a certain threshold-like requirements. And because of the fact that enterprises are economic subjects that aimed at profit purposes and the fact that the result of the competition is to pursuit profit, when institution subjects want to associate the legality with the product or service, enterprises can take some strategic behaviors in the market to create extra profits, what we call competitive advantage. Based on the Institution-Based View and the Resource-Based Theory of the strategic management, this paper attempts to research the resources of competitive advantage, and conducted the study on point of private strategic behavior.In this context, this paper tries to explain the fact that the competitive advantage of enterprises are different in different institution environment, and to establish a relationship between legitimacy, privately strategic behavior and competitive advantages by using theoretical derivation and case analysis method. Then, after analyzing this connection, this paper made an exploration of the factors which affect the sustainable competitive advantage. Finally, by discussing the results concluded, we dedicated our effort to give a suggestion to the enterprise on how to create competitive advantage under the institution environment.