Search results

Literature on critical and institutional theories are often perceived to be incompatible, despite a shared conceptual grounding. By clearly defining and understanding the concepts of “hegemony” and “role obligations” one might address this misconception of incompatibility, and allow the development of a framework to bridge the concepts of institutions and critical theory. This bridge allows the two streams of literature to meaningfully benefit from each intellectual space. This bridge can ultimately be used to inform both theory and practice in the study of organizations.

Service scholars are finding that institutions – enduring social structures, such as rules, norms, beliefs – are increasingly important in theorizing on service-related phenomena. The purpose of this paper is to advance the use of institutional theory in service research by synthesizing the key insights from institutional theory that have been applied to service-related phenomena and developing a research agenda to guide the future use of institutional theory in service research.

This paper is an integrative literature review covering 68 articles from major service research and marketing journals that adopt institutional concepts and frameworks to study service-related phenomena.

The paper maps the “institutional turn” of service research, that is, the increasing tendency to draw on institutional theory for theoretical insights within service research and builds a conceptual framework of the institutional stabilization and destabilization mechanisms that explain endurance and change in service phenomena. The paper also proposes a research agenda that outlines four previously ignored aspects of institutions that have important implications for service research.

In addition to synthesizing insights and proposing directions for future research, the paper highlights specific theoretical and methodological considerations for the future use of institutional theory within service research. The literature review is limited to the 13 major service research and marketing journals.

This paper is the first literature review of the use of institutional theory in service research.

Once introduced and conceptualized as a factor that causes erosion and decay of social institutions and subsequent deinstitutionalization, the notion of entropy is at odds with predictions of institutional isomorphism and seems to directly contradict the tendency toward ever-increasing institutionalization. The purpose of this paper is to offer a resolution of this theoretical inconsistency by revisiting the meaning of entropy and reconceptualizing institutionalization from an information-theoretic point of view.

It is a theoretical paper that offers an information perspective on institutionalization.

A mistaken understanding of the nature and role of entropy in the institutional theory is caused by conceptualizing it as a force that counteracts institutional tendencies and acts in opposite direction. Once institutionalization and homogeneity are seen as a product of natural tendencies in the organizational field, the role of entropy becomes clear. Entropy manifests itself at the level of information processing and corresponds with increasing uncertainty and the decrease of the value of information. Institutionalization thus can be seen as a special case of an increase in entropy and a decrease of knowledge. Institutionalization is a state of maximum entropy.

It is explained why institutionalization and institutional persistence are what to be expected in the long run and why information entropy contributes to this tendency. Contrary to the tenets of the institutional work perspective, no intentional efforts of individuals and collective actors are needed to maintain institutions. In this respect, the paper contributes to the view of institutional theory as a theory of self-organization.

The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of interacting with other institutions in the emerging markets (EMs) of sub-Saharan Africa. The key research question investigated by employing the exploratory qualitative data gathered is: What strategies and global alliances do small local firms (SLFs) in Nigeria adopt to succeed under complex market conditions?

The methodology employed is exploratory qualitative research. The authors conducted extended interviews to generate rich case study data from the top management of the selected SLFs in Nigeria. The interview data were assessed using open, axial and selective coding to uncover macro-narratives that guide SLFs’ strategies and global alliances.

The macro-narratives derived from the qualitative case analysis reveal a theoretical framework centered on three major elements of competitive strategies in Nigeria: build global capacity and strategic alliances from the get-go; develop local strategic alliances; master matching alliance partners’ needs to create innovative payment plans and, when necessary, shift the transaction cost burden to alliance partners. Matching theory rather than traditional network theories is better at explicating SLFs’ alliances in Nigeria. Implementation of these strategies requires flexible strategic initiatives.

The study adapts institutional interaction theory, network theory, matching alliance perspective, trade credit theories and the literature on small firms’ strategies in EMs to explicate successful small local firm strategies and global alliances under complex market conditions in Nigeria. The recognition that SLFs regularly migrate and shift the burden of transactions’ cost to multiple stakeholders in the supply network by matching customers and supplier needs is important. The discovery of matching theory in explicating SLFs’ global alliances in Nigeria is unique to this study.

This study aims to explore the knowledge spillover mechanism in big science projects (BSP) from an institutional perspective by elaborating on the dynamic relationship between institutional dualism and legitimacy.

The study conducts an exploratory research and adopts the grounded theory methodology in the context of BSP. Data draw mainly upon nine semi-structured interviews.

The knowledge spillovers in BSP are driven by institutions, which work through mechanisms of legitimacy perception. Formal and informal institutions influence organizational and individual behavior through legitimacy pressure and support. Formal institutions impose legitimacy pressure on organizations and individuals, forcing them to cooperate closely to solve problems; informal institutions enable them to adopt innovative strategies and positive attitudes through legitimacy support; all these promote knowledge spillovers in research and development (R&D) activities, engineering practice and regional interaction. Knowledge spillovers enable stakeholders to realize their R&D advancement, manufacturing promotion and management sophistication. Further, regional knowledge diffusion and culture transmission promote regional innovation and social capital accumulation.

The study develops a theoretical model that shows how knowledge spillover mechanisms happen in BSP from an institutional perspective (the trigger, the channels/process and the impacts). More specifically, this explanation is provided by explaining how formal and informal institutions influence organizational and individual behavior through legitimacy perceptions.

First, policymakers should recognize and value the guiding, supporting and coordinating role of formal institutions and enrich capital forms to release the legitimacy pressure of stakeholders. Second, management of BSP needs to be capable of coordinating stakeholder relationships and interactions, while management should focus their attention on fostering good organizational routines and shared group value. Third, the local culture and customs should be taken into consideration since it can be an enabling or constraining of BSP. Finally, industries can take advantage of the opportunity to coordinate their R&D efforts to gain competitiveness.

First, the authors introduce the institutional perspective to analyze the construction process of BSP, which helps to better understand the interactions of stakeholders under the influence of institutions, the dynamic process and impacts of knowledge spillovers. Second, the authors are committed to contributing to the development of knowledge spillover theories by adopting an institutional perspective. The authors furthermore explore and propose the presence of a dynamic mechanism between institutional dualism and knowledge spillovers. In consequence, the authors introduce the concept of legitimacy perceptions, which is a bridge to understanding the interaction between them. Third, by explicitly discussing the actual meaning of our framework, the authors explore the unique potential of institutional arrangement in promoting the knowledge management of complex cross-border cooperation, while seeking to promote its management and administrative practices.

The purpose of this paper is to develop a conceptual model for the mode of entry in a particular case of global MNEs entering into emerging markets.

The conceptual model builds on institutional theory and follows an integrated approach of entry mode theories using bargaining theory, the liability of foreignness and local legitimacy.

The conceptual model introduces five propositions.

The study has policy implications for emerging market institutions. Also, the model highlights the significance of long-term vision in global MNEs’ sustainability. However, the model excludes the MNEs’ internal institutions, home country institutions, as well as institutional and cognitive distances.

The conceptual model addresses the dynamics of MNEs’ entry decisions with long-term strategic vision. It helps to recognize the global MNEs’ internalization of the host country’s formal and informal institutions when the bargaining power is in imbalance.

Institutions play a central role in service-dominant logic. However, the discussion regarding how institutional theory supports service-dominant logic advancements is still insufficient. This paper aims to contribute to a discussion on the multiple service-dominant logic approaches to institutions.

This conceptual paper presents the characterization of the existing streams in the broad institutional literature, highlighting the differences among those streams and elaborates on how one of the discussed streams – neo-institutionalism – is suitable to support service-dominant researchers in understanding the role of institutions in markets and value co-creation.

The paper shows that the three institutional perspectives presented are used indistinctly by service-dominant logic and a greater fit between the service-dominant logic and the neo-institutionalism stands out.

The paper proposes that service-dominant researchers should look at the neo-institutional stream as a particularly fertile ground for furthering their research.

Schmoller tried to combine reasoning and economic analysis to give a new foundation to German economic theory in the nineteenth century. Opposing the economic philosophy of Fichte, Schmoller preferred an institutional approach to the extremes of pure market and pure state economy. His ideas on economic welfare as a collective rather than as an individualistic idea are discussed.

The purpose of this paper is to focus on conceptualizing the origin of legitimacy, the legitimation process and its trustworthiness toward the people, regulators, society and stakeholders. In achieving the purpose of the study, an inclusive research gap concerning the roles of the Shariah Supervisory Board (SSB) as a Shariah regulatory authority or an internal mechanism of Shariah Governance Framework (SGF) in the development and formation of Islamic financial institutions (IFIs) would also be addressed.

The paper implements an analytical approach to investigate the legitimation process of SSB, and its presence, significance, as well as credibility to the stakeholders.

This study proposes an additional authority of legitimacy, namely, SSB/Shariah regulatory authority, along with regulators, professionals and people. These could be derived from the internal mechanism of Shariah Governance (SG) practices of IFIs. The study also proposes another type of legitimacy (ethical/Shariah legitimacy) that derives from the organizational SG practices through its internal mechanisms. The formation of SSB is mandatory and more significant for the isomorphic identification of IFIs, SG system, legitimacy and broader acceptance to stakeholders.

The rational argument shows that SSB legitimates the overall functions of IFIs, SG practices, processes and structures. It is more apposite because it has substantial validity, dominance, recognition and acceptability along with three external bodies. Besides, IFIs and their SG do not have the proper value to the general people, society, regulators and other stakeholders without the legitimization of SSB. Thus, theorists and academicians may consider SSB as the fourth party of legitimacy along with three legitimacy providing authorities (regulators, professionals and people).

The paper focuses on illustrating and extending the border knowledge concerning the legitimacy from SG and how do SSBs legitimize IFIs and enhance their credibility to the general people, government, society and other stakeholders. The paper first clarified the internal legitimacy concerning SGF and contributed to the area of Islamic finance, legitimacy, institutional theory, legitimacy theory and internal legitimacy.

The aim of this paper is to discuss the similarities and differences of both conventional and Islamic financial institutions from various institutional perspectives.

This conceptual paper describes the insights held by the financial institution theory which is discussed from the perspectives of the economics of the financial institution, legal environment, the political aspect of an institution, the philosophical underpinning, the components of institution and also the ethical role of institution. Then, this paper will proceed to justify the similarities and differences that have been observed between both institutions.

Discussions in this paper will reveal that specifically specific similarity is prevalent on the nature of the supervisory role. The differences between both institutions from the aspects of business organization, economic roles and law of origin have also been found.

The similarities and differences that are established on both institutions will affect the structure of the financial contract and the design of financial systems.

The paper will contribute a new knowledge specifically on the design of the Islamic financial contract based on Shariah law at the initial phase.