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Which of the following is most true regarding the strategic value of institutional logics? question 5select one:

a. institutional logics are valuable because they raise the costs for firms adapting to their environments
b. competitive advantage must come on some other dimension than institutional logic if firms share that institutional logic
c. when institutional logics are stable, they have the most strategic importance
d. institutional logics are coveted by firms (not taken for granted)
e. if firms share an institutional logic, the logic provides a basis for relative advantage among firms

1 Answer

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Final answer:

The most true statement about the strategic value of institutional logics is that firms must seek competitive advantage on other dimensions when they share the same logic, as this shared logic does not provide a basis for relative advantage.

option a is the correct

Step-by-step explanation:

The strategic value of institutional logics in the context of firms and their environment is a topic of interest in international relations and business studies.

Focusing on the question 'Which of the following is most true regarding the strategic value of institutional logics?', the correct answer is that competitive advantage must come on some other dimension than institutional logic if firms share that institutional logic.

When firms share the same institutional logic, they have to find ways to differentiate themselves to gain a competitive edge, as the shared logic does not provide a direct basis for relative advantage.

In institutional theory, institutional logics refer to the frameworks of cultural beliefs and rules that structure the behavior of organizations within a social system. Institutions, including rules, norms, and beliefs, shape the actions and strategies of firms but do not necessarily confer a competitive advantage on their own. Firms must thus seek other ways to distinguish themselves in the market.

It is worth noting that institutional logics do not inherently raise costs for firms adapting to their environments, nor is it true that their strategic importance is highest when they are stable; they are considered an inherent part of the business environment rather than a coveted, rare resource.

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