Institutional Theory
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Institutionalism
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Within the broader area of organizational studies, institutional theory is a major theoretical perspective. It is used to understand organizational behavior as situated in and influenced by its environment. Organizations operate in a social environment that changes, as a result of new laws, the emergence of new standards, rules or norms, new patterns of behavior, and new participants. Institutional theory seeks to explain how elements such as structures, processes, and professions are created and diffused within and between organizations (Greve 2003 , p. 172). It asserts that institutional environment has often more profound impact on the development of those elements than market pressures (Meyer and Rowan 1977 ), and, as such, it explains organizational behaviors that defy economic rationality (Suddaby 2013 ). The reason for the power of noneconomic drivers is that organizations are striving for legitimacy (see “Legitimacy Theory” and “Social...
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Department of Management Theory, Warsaw School of Economics, Warsaw, Poland
Maria Roszkowska-Menkes
Department of Management, Tilburg School of Economics and Management, Tilburg, Netherlands
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London Metropolitan University, Guildhall Faculty of Business and Law London Metropolitan University, London, UK
Samuel Idowu
Cologne Business School, Ingolstadt, Germany
René Schmidpeter
College of Business, Loyola University New Orleans, New Orleans, LA, USA
Nicholas Capaldi
International Training Centre of the IL, International Labor Organization, Turin, Italy
Liangrong Zu
Department of Economics, Society and Politics, University of Urbino Carlo Bo, Urbino, Italy
Mara Del Baldo
Instituto Politécnico da Guarda, Guarda, Portugal
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University of Canberra, Canberra, ACT, Australia
Benedict Sheehy PhD
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Roszkowska-Menkes, M. (2022). Institutional Theory. In: Idowu, S., Schmidpeter, R., Capaldi, N., Zu, L., Del Baldo, M., Abreu, R. (eds) Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-030-02006-4_389-1
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DOI : https://doi.org/10.1007/978-3-030-02006-4_389-1
Received : 09 February 2022
Accepted : 13 February 2022
Published : 06 October 2022
Publisher Name : Springer, Cham
Print ISBN : 978-3-030-02006-4
Online ISBN : 978-3-030-02006-4
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