This paper takes for the view that the stress of strategic management theories is to explore the origin of the organizational ability，thus it mistakes the way to strategic management research. In the paper, we introduces the concepts of ‘institutional environment’,‘legitimacy’ and ‘organizational isomorphism’ from New Institutionalism and makes the discussion about its nature and theoretical contributions to Organizational Study and Management as well as the theoretical limitations on Strategic Management Research. At last, after the discussion on the specific nature of institutional environment and organizational isomorphism in the transitional stage, the paper presents two key points for China strategic management research.