Business Atlas

How Enterprise Is Built
Sign In
Text size
100%
Theme
Management Theory

Institutional Theory

Behavioral, Human Relations and Contingency Theories

Institutional theory, as applied to organizations, examines how the structures, rules, and practices of organizations are shaped not only by the pursuit of efficiency but by pressure to conform to the expectations, norms, and rules of their broader social and institutional environment. A key contribution associated with the theory is the concept of institutional isomorphism, developed by Paul DiMaggio and Walter Powell in a widely cited 1983 paper, which describes coercive, mimetic, and normative processes that cause organizations operating in the same field to become more similar to one another over time. The theory is widely used in organizational studies to explain why organizations often adopt similar structures and practices even when those choices are not clearly justified by efficiency alone.

Facts
Disputed
Origin Year
1977 1
No single founding year is stated anywhere in the cited article; it names Meyer and Rowan (1977) alongside DiMaggio and Powell (1983) as the foundational references for institutional isomorphism, without calling either one the theory's origin.
Core Claim
Institutional theory examines how structures, including schemes, rules, norms and routines, become established as authoritative guidelines for social behavior within organizations. 1
Classification
Topic (Functional Area)
Organizational Behavior 1
Connections

Associated With

Institutional theory own account of organizational bureaucratization draws directly on Weberian bureaucratic theory.

Both are core organizational-economics theories explaining why firms adopt particular structures and boundaries, routinely taught and compared together.

In the Other Atlases
Sources
1. Wikipedia, Institutional Theory
Wikipedia
  • Wikipedia, Institutional theory lead section
    It considers the processes by which structures, including schemes, rules, norms, and routines, become established as authoritative guidelines for social behavior.
  • Wikipedia, Institutional theory, isomorphism discussion
    organisations must conform to the rules and belief systems prevailing in the environment (DiMaggio and Powell, 1983; Meyer and Rowan, 1977)
  • Introduction, functional area topic classification
    In sociology and organizational studies, institutional theory is a theory on the deeper and more resilient aspects of social structure.
View the Source
Comments (0)
No comments yet. Be the first to share a thought.
Reader Challenges (0)
No disputes yet. Spotted an error or a better source? Open the first one.