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Article
Publication date: 10 January 2022

Herman Aksom

Institutional theory had been developed for the purpose of explaining widespread diffusion, mimetic adoption and institutionalization of organizational practices. However…

Abstract

Purpose

Institutional theory had been developed for the purpose of explaining widespread diffusion, mimetic adoption and institutionalization of organizational practices. However, further extensions of institutional theory are needed to explain a range of different institutional trajectories and organizational responses since institutionalized standards constitute a minority of all diffusing practices. The study presents a theoretical framework which offers guidelines for explaining and predicting various adoption, variation and post-adoption scenarios.

Design/methodology/approach

The paper is primarily conceptual in nature, and the arguments are developed based on previous institutional theory and organizational change literature.

Findings

The notion of institutional inertia is proposed in order to provide a more detailed explanation of when and why organizations ignore, adopt, modify, maintain and abandon practices and the way intra-organizational institutional pressures shape, direct and constrain these processes. It is specified whether institutional inertia will be temporarily eclipsed or whether it will actively manifest itself during adoption, adaptation and maintaining attempts. The study distinguishes between four institutional profiles of organizational practices – institutionalized, institutionally friendly, neutral and contested practices – which can vary along three dimensions: accuracy, extensiveness and meaning. The variation and post-adoption outcomes for each of them can be completely characterized and predicted by only three parameters: the rate of institutional inertia, institutional profile of these practices and whether they are interpretatively flexible. In turn, an extent of intraorganizational institutional resistance to new practices is determined by their institutional profile and flexibility.

Practical implications

It is expected that proposed theoretical explanations in this paper can offer insights into these empirical puzzles and supply a broader view of organizational and management changes. The study’s theoretical propositions help to understand what happens to organizational practices after they are handled by organizations, thus moving beyond the adoption/rejection dichotomy.

Originality/value

The paper explores and clarifies the nature of institutional inertia and offers an explanation of its manifestation in organizations over time and how it shapes organizational practices in the short and long run. It challenges a popular assumption in organizational literature that fast and revolutionary transition is a prerequisite for successful change. More broadly, the typology offered in this paper helps to explain whether and how organizations can successfully handle and complete their change and how far they can depart from institutional norms.

Details

Journal of Organizational Change Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0953-4814

Keywords

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Book part
Publication date: 15 December 2016

Karen D. W. Patterson, Michelle Arthur and Marvin Washington

Rigid environments, those with exceptionally strong cultural and traditional barriers to change, present unique challenges for institutional entrepreneurs attempting to…

Abstract

Rigid environments, those with exceptionally strong cultural and traditional barriers to change, present unique challenges for institutional entrepreneurs attempting to initiate change. We utilize such a setting to examine what support mechanisms, both individual and contextual, have been utilized when attempting change in rigid environments. We examine the case of successful and unsuccessful attempts to make golf more inclusive to women. Our research supports the claim that rigid environments require more complex combinations of support mechanisms than other settings, illustrating the importance of institutions in both enabling and constraining change in such settings.

Details

How Institutions Matter!
Type: Book
ISBN: 978-1-78635-429-7

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Book part
Publication date: 6 August 2018

Ana M. Aranda and Tal Simons

We explore the simultaneous influence of activist organizations and corporations on institutional change. Focusing on protests, campaign contributions, and lobbyists as…

Abstract

We explore the simultaneous influence of activist organizations and corporations on institutional change. Focusing on protests, campaign contributions, and lobbyists as the strategies used by activist organizations and corporations to influence institutional change, we study the dynamics between movements and counter-movements and their influence on the probability of institutional change. In the context of the US tobacco industry, the results shed light on the effectiveness of these strategies and uncover potential moderators of this relationship. Overall, we demonstrate the simultaneous and asymmetric effects of activist organizations and corporations that use conspicuous and inconspicuous strategies to change institutions.

Details

Social Movements, Stakeholders and Non-Market Strategy
Type: Book
ISBN: 978-1-78754-349-2

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Book part
Publication date: 8 June 2012

Aycan Kara and Mark F. Peterson

Many international management scholars have expressed concern about whether societal culture changes so rapidly that research which attempts to represent it has little…

Abstract

Many international management scholars have expressed concern about whether societal culture changes so rapidly that research which attempts to represent it has little utility. We address this fundamental concern of international management by providing three theoretical lenses to examine the forces that produce and maintain a society's culture: functional theory, neo-institutional theory and complexity theory. We consider principles of progressive change and problems of social psychology from functional theory, the three pillars and conflicting institutional logics of neo-institutional theory and the ideas of stable equilibrium, oscillations and chaos of dynamic systems from complexity theory. Although these three theoretical lenses sometimes produce conflicting explanations of culture change, they often complement each other. Together, they provide a more realistic picture of the dynamics of the societal cultural milieu of organizations than do cultural representations that favour stability or those that completely discount the utility of any attempt at representing cultural continuity.

Details

Institutional Theory in International Business and Management
Type: Book
ISBN: 978-1-78052-909-7

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Book part
Publication date: 25 November 2019

Riku Ruotsalainen

Leaders derive their capacity for driving institutional change from their power over organizations, but prior research says little about how leaders with limited power…

Abstract

Leaders derive their capacity for driving institutional change from their power over organizations, but prior research says little about how leaders with limited power over a dominant intraorganizational group can acquire such a capacity for institutional action. This chapter develops a multilevel model that helps to understand how leaders of public service organizations were able to introduce “contract organization” form of organizational governance that enabled them to outsource the provision of public services to private firms. By doing so, this chapter adds to existing accounts of how power and political processes can give rise to organizational and institutional change.

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Book part
Publication date: 12 August 2009

Rick Vogel

In this article, my goal is to approach Thomas S. Kuhn's account of scientific development from the perspective of institutional theory. Reading it this way, his main work…

Abstract

In this article, my goal is to approach Thomas S. Kuhn's account of scientific development from the perspective of institutional theory. Reading it this way, his main work can be seen as a treatise on endogenous change of an institutional order, occurring under circumstances that do not allow the expectation of such discontinuities when deploying common institutional arguments. To elucidate the underlying mechanisms, I draw on ideology as the set of beliefs incorporated in the system of orientation Kuhn calls paradigm. From his dense description of paradigm shifts, I deduce five propositions on the role of ideology in radical institutional change. Subsequently, I reconcile these propositions with assumptions of institutional theory and identify, in addition to some convergences, points of divergence, which give impetus to extend conceptions of institutional change.

Details

Institutions and Ideology
Type: Book
ISBN: 978-1-84855-867-0

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Book part
Publication date: 25 November 2019

Jan Goldenstein and Peter Walgenbach

Neo-institutional theory has been criticized for equating the macrolevel with the realm of unconsciously constraining institutions and the microlevel with the realm of…

Abstract

Neo-institutional theory has been criticized for equating the macrolevel with the realm of unconsciously constraining institutions and the microlevel with the realm of actors’ reflexive agency and the origin of change. Considering the co-constitution of the macro and micro, the authors propose that change can be explained through reflexivity at the microlevel and through unconscious processes that affect the macrolevel. This chapter contributes to neo-institutional theory’s microfoundation by distinguishing four types of institutional changes. It will help institutionalists to become more explicit about what cognitive processes and what field conditions are related to what kinds of agency and change.

Details

Microfoundations of Institutions
Type: Book
ISBN: 978-1-78769-123-0

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Article
Publication date: 14 August 2021

Kwadwo Oti-Sarpong, Erika Anneli Pärn, Gemma Burgess and Mohamed Zaki

Government initiatives to improve construction have increasingly become more focused on introducing a repertoire of technologies to transform the sector. In the literature…

Abstract

Purpose

Government initiatives to improve construction have increasingly become more focused on introducing a repertoire of technologies to transform the sector. In the literature on construction industry transformation through policy-backed initiatives, how firms will respond to the demands to adopt and use innovative technologies and approaches is taken for granted, and there is scarcely any attention given to the institutional implications of transformation agenda. The purpose of this paper is to discuss these gaps and offer directions for future research.

Design/methodology/approach

Following a synthesis of literature on the UK’s industry transformation agenda, the authors use the concepts of institutional logics, arrangements, complexity and strategic responses to suggest seven research questions that are at the nexus of policy-backed transformation and institutional theory.

Findings

In this paper, the authors argue that increasing demands for the adoption and use of digital technologies, platforms, manufacturing approaches and other “industry-4.0”-related technologies will reconfigure existing logics and arrangements in the construction industry, creating a problem of institutional complexity for general contracting firms in particular.

Originality/value

The questions are relevant for our understanding of the nature of institutional complexities, change, strategic firm responses, field-level dynamics and implications for the construction industry in relation to the transformation agenda. This paper is positioned to spur future research towards exploring the consequences of industry transformation through the lens of institutional theory.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

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Book part
Publication date: 27 September 2012

Mahabat Baimyrzaeva

If donors cannot even agree about what institutions are and do not clearly understand how to promote deliberate institutional change, then what are ideas and assumptions…

Abstract

If donors cannot even agree about what institutions are and do not clearly understand how to promote deliberate institutional change, then what are ideas and assumptions that inform their institutional reforms? In each wave of reforms, donors’ interventions and practices have been grounded in layers of unjustified assumptions – explicit or implicit – on the nature of institutions and institutional change, rather than on robust empirical research and analysis of lessons from previous reforms. These assumptions, despite evidence from previous reforms that they are misguided, have been accumulated and passed on to newcomers in the donor community. These assumptions are referred to here as myths.

Details

Institutional Reforms in the Public Sector: What Did We Learn?
Type: Book
ISBN: 978-1-78052-869-4

Open Access
Article
Publication date: 29 April 2021

Wilquer Silvano de Souza Ferreira, Gláucia Maria Vasconcellos Vale and Patrícia Bernardes

The aim of this article is to test the hypothesis that peer-to-peer technology platforms (Uber) are associated with disruption in the institutional environment, affecting…

Abstract

Purpose

The aim of this article is to test the hypothesis that peer-to-peer technology platforms (Uber) are associated with disruption in the institutional environment, affecting beliefs, norms and users' ways of thinking and acting.

Design/methodology/approach

Probability sample comprising 843 users (446 passengers; 397 drivers) in the city of Belo Horizonte, Brazil, using a set of indicators was specifically designed for this study.

Findings

Uber triggers significant changes in the systems of rewards and sanctions, in social preferences, and in entrepreneurial structure and governance, and promotes the coexistence of an institutional logic, hitherto dominant, with new believes, rules, norms and regulatory systems.

Originality/value

This is a pioneer study that associates institutional approach's elements with technology platforms; the authors also elaborated and utilized an analysis model consisting of a set of completely original indicators capable of mapping and measuring different dimensions of the phenomenon under analysis.

Details

Revista de Gestão, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1809-2276

Keywords

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