Final answer:
The major drawback of an institution-based view is that it suggests that firm performance around the globe would be entirely uniform.
Step-by-step explanation:
The major drawback of an institution-based view is that when this view is pushed to its logical extreme, it suggests that firm performance around the globe would be entirely Uniform. According to the institutional view, firms' performance is highly influenced by the institutional context in which they operate, including formal and informal rules, norms, and values. However, assuming that all firms would perform in the same way across different institutional contexts is not realistic. Firms may face different challenges, opportunities, and market conditions in different countries, leading to variations in their performance.