External Factors and Risk Considerations: Applying the Institutional-Based View of Management

Mark William Cawman, David Min

Abstract

This research builds on the Institution-based view of strategic management. It introduces an expansion of the PEST model to the PESTLEEG Analysis Model for analysis with a Failure Mode/Effects Analysis (FMEA). This is to provide a ranking methodology for evaluating both domestic and international target environments. This is especially pertinent to small/mid-size businesses, expanding or transitioning industry (e.g., manufacturing or similar) into new environments. This study has both academic (Strategic Management and International Business) and industry significance with timely application in the current globalization and political environments. Opportunities exist for further research, both horizontally (e.g., extensions, industries, and PESTLEEG factor applications) and vertically (e.g., proof through case studies) due to the recent formalizing of the Institution-based view theory and the PESTLEEG analysis model’s use with a FMEA application process.