ABSTRACT
A key challenge for scholars interested in non-market strategy is to improve understanding of the complex risks that fi rms face and to formulate effective strategies for responding to them. Non-market risks, which include social, political, legal, environmental, and technological risks (among others), can create major business disruptions and threaten fi rm survival. The cause of these risks is generally attributed to factors outside the control of most fi rms. To gain a comprehensive understanding of these risks, scholars and managers must not only examine the risks themselves, but the broader context in which they occur. The institutional environment can greatly infl uence the likelihood that a major risk will occur, the severity of the risk, and the appropriate strategic responses available to managers (Doh, Lawton, and Rajwani, 2012; Lawton, McGuire, and Rajwani, 2013).
