Abstract
The role of the external environment is critical to understanding international entrepreneurial behavior. Scholars in this area seek to understand the role that the state and international organizations play in entrepreneurship, often employing an institutional theory perspective to analyze the phenomenon. However, the existing literature conceptualizes institutional theory in a very limited way, relying mainly on Scott's “three pillars”. We review recent work on institutional theory and international entrepreneurship in order to understand how scholars have applied institutional theory. We then discuss current trends in institutional theory. We conclude with suggestions for a deeper application of institutional arguments in international entrepreneurship research, with extensions from current literature in organization studies that can contribute to a richer research agenda.
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