Entrepreneurs, who uncover and exploit opportunities to create customer value through introducing innovative products and services (Choi, Levesque, & Shepherd, 2008; Shane & Venkataraman, 2000) are constrained by extensive and complex regulatory environments. Regulations shape the environment in which entrepreneurs are embedded and influence the variety of opportunities entrepreneurs may uncover as well as limit their means of exploitation (Meek, Pacheco, & York, 2010). Nevertheless, the regulatory constraints that entrepreneurs face are malleable (cf. Endicott, 2001; Phillips et al., 2004), which means entrepreneurs may be able to change regulatory constraints in order to pursue favorable outcomes. This study examines the role that firms’ institutional capabilities may play in expanding or retracting regulatory constraints in order to either obtain access to a greater number of opportunities or to increase the value of opportunities they are already exploiting.