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Institutional Theory of Organizations

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Global Encyclopedia of Public Administration, Public Policy, and Governance

Synonyms

Institutionalism; Institutional analysis; Institutional theory; New institutionalism; Organizational institutionalism

Definition

The institutional theory of organizations puts institutions at the core of the analysis of organizations’ design and conduct. From this point of view, organizations are local instantiations of wider institutions. Institutions, understood as taken-for-granted beliefs, rules, and norms, shape the creation and spreading of organizational forms, design features, and practices. Complying with institutionalized prescriptions is considered a means for gaining legitimacy, decreases uncertainty, and increases intelligibility of organization’s actions and activities.

Introduction

The rise of institutional arguments in organizational analysis reflects a sense of dissatisfaction with theories that put efficiency at the core of organizational action. Organizations do not operate in a vacuum. They must deal with a multitude of external influences, such as cultural...

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Author information

Authors and Affiliations

  1. Department of Management, Freie Universität Berlin, Berlin, Germany

    Olivier Berthod

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  1. Olivier Berthod
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Correspondence to Olivier Berthod .

Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, Florida, USA

    Ali Farazmand

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Berthod, O. (2016). Institutional Theory of Organizations. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_63-1

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  • DOI: https://doi.org/10.1007/978-3-319-31816-5_63-1

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  • Publisher Name: Springer, Cham

  • Online ISBN: 978-3-319-31816-5

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