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Literature Review from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: 0.933, EBS European Business School gGmbH, course: Academic Writing, language: English, abstract: The institutional environment in the home country of a firm is a basis for its organization and management and its strategy overall. It shapes the individual constitution and thus the organizational constitution in the regulative, normative and cognitive dimension. To conclude, in order to become successful international it is necessary to understand the host countries institutional environment and the differences between the host and the home country. With this knowledge base a firm needs to evaluate if it needs to tangible and intangible resources. Afterwards, it needs to choose an entry mode with respect to the resource allocation it needs.