Abstract
Scholars following the resource-based view school of thought are often criticized for overlooking the impact of institutions on their fundamental argument that unique combinations of resources and capabilities contribute to the competitive advantages of organizations. Little is known about how institutional upheavals affect organizational resource bases and how managers respond to institutional changes by re-configuring any existing resources. In our study, we combined the resource-based and the institution-based views to investigate the complex relationship between organizational resources and institutional changes and the role played by dynamic capabilities in mitigating the impact of institutional changes. We explored this relationship by drawing upon an in-depth longitudinal processual case study of a privately owned education trust (PET) that underscored significant growth in India’s rapidly evolving institutional landscape. The findings of our study provide critical theoretical enrichment to the resource-based and institution-based explanations of organizational growth and offer important practical implications.
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