| This Paper Shows Origination, development and main contents of strategy advantage and corporate culture, reveals their inner contact in the practice of enterprise management, namely the principle that the compatibility of strategy and corporate culture must be necessary. The paper takes it as the foundation. At first. Inquires into the different and same in two theories. And it enlightens managerial staff. The second. Discuss the function of two theories. And mutual strengthen and complement of two functions. The third. Emphasizes on the interaction of two theories in the practice of enterprise management. At last, according to the problem that the management cost of country is high during reform of economic system, the paper puts forward institutional innovation ,at the time same, rebuilds corporate culture that fit in with institutional economics ,and have efficiency as well, as suitable to the condition of our country. |