Abstract
Through a longitudinal case analytic framework combining qualitative and quantitative methods, we attempt to bridge the gap between the institutional effects of industry regulation and societal norms on firm cognitions and their resultant strategies. We suggest that while regulation has significant effects on firms' strategic behaviors, the norms and preferences of greater society have a strong moderating effect on firm strategy. We argue when regulations oppose the firms' perceptions social norms and cognitions, they will resist these regulations, but when regulations are in line with the firms' perceptions of social norms and cognitions, firms will seek to exceed regulatory requirements.