A theoretical perspective that contends that organizations are limited in their ability to adapt to the conditions around them. A theoretical perspective that contends that an organization can, at least in part, create an environment for itself that is beneficial to the organization by putting strategies in place that reshape competitive conditions in a favorable way. 1. Enactment 2. Environmental determinism 3. Institutional Theory The extent to which companies copy one another's strategies. A theory that centers on whether it is cheaper for a company to make or to buy 4. Transaction Cost Economics the products that it needs