Institutional distance refers to the differences between the institutional environments of two countries, regions, or organizations, which can affect cross-border interactions such as international business, investment, or cooperation. It captures the extent to which regulatory, normative, and cognitive institutions diverge, influencing how entities operate and interact. Institutional distance is analyzed from diverse institutional perspectives by examining three main pillars: regulatory (formal rules, laws, and enforcement), normative (social norms, values, and expectations), and cognitive (shared beliefs and common understandings). Researchers assess institutional distance by comparing these pillars across contexts using quantitative indices, qualitative assessments, or mixed methods. For example, in international business, institutional distance helps explain challenges in foreign market entry, adaptation strategies, and performance outcomes. Analyses often involve measuring differences in legal systems, governance quality, cultural norms, and business practices. By integrating multiple institutional perspectives, scholars and practitioners gain a nuanced understanding of how institutional disparities impact organizational behavior and strategy.