Professional Documents
Culture Documents
Agenda
Institutional Logic
Institutional Entrepreneurship
Institutional Work
What is an Institution?
Examples of Institutions
Organisations
Companies
Industry
Universities
Marriage
A class room
A household
Pillars of Institutions
Institution constraints organisational activity through three different
dimensions:
Pillars
Regulative
Normative
Basis of
compliance
Expedience
Basis of order
Regulative rules
Binding
expectations
Consultative Scheme
Mechanisms
Coercive
Normative
Mimetic
Logic
Instrumentality
Appropriateness
Orthodoxy
Indicators
Rules, Laws,
Sanctions
Certification,
Accreditation
Common beliefs
Shared logic of action
Basis of legitimacy
Legally
sanctioned
Morally
governed
Comprehensible.
Recognizable,
Culturally Supported
Cultural-Cognitive
The Issue of
Decoupling:
What is appropriate
become more
important than what is
consequential
Legitimate behaviour is
appropriate behaviour
Example of legitimacy:
Input Legitimacy and Output Legitimacy (Botzem & Dobusch, 2012) (e.g : IFRS)
Due process
Legal Support
Aquiescence
Compromise
Avoidance
Defiance
Manipulations
Institutional Logic
The term institutional logic was introduced by Alford and Friedland (1985)
to describe the contradictory practices and beliefs inherent in the institutions
of modern western societies.
Core institutions of society : Capitalist market, bureaucratic State, Family,
Democracy and Religion, - each has a central logic that constraints both
means and ends of individual behaviours.
An institutional logic is the way of particular social world works.
IFRS is an accounting standard, which is a socially constructed product as a
result of political struggle of interested actors. Does IFRS has logics? What are
the logics of IFRS?
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Institutional Logic
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Institutional Entrepreneurship
(DiMaggio, 1998 ; Battilana, Leca, Boxenbaum : 2009)
Yet many evidence : Gandhi, Martin Luther King, Elvis Presley, Sir David
Tweedie,
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Institutional Work
2009)
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World Society Theory (Meyer, 1997 ; Drori 2003; Drori et al., 2006)
Sociological theories
Modernization theory
World Systems Theory (WST) / dependency theory
World polity theory (WPT) / institutional theory
World Society Theory see the world as a village with its own culture and
polity. Globalization are the result of people adopting the world culture
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References
Battilana, J., Leca, B and Boxenbaum, E. 2009. 2How Actors Change Institutions:
Towards a Theory of Institutional Entrepreneurship. The Academy of Management
Annals, 3, 65-107.
Botzem, S., & Dobusch, L. (2012). Standardization cycles: A process perspective on
the formation and diffusion of transnational standards. Organization Studies,
33(5-6), 737-762.
DiMaggio, Paul J., and Walter W. Powell 1983. The iron cage revisited: Institutional
isomorphism and collective rationality in organizational fields, American
Sociological Review 48:147-60.
Drori, G. S. (2003). Science in the modern world polity: Institutionalization and
globalization: Stanford University Press.
Drori, G. S., Meyer, J. W., & Hwang, H. (2006). Globalization and organization: World
society and organizational change: Oxford University Press.
Lawrence, T. B. & Suddaby, R. (2006) 1.6 Institutions and Institutional Work. In: Clegg,
S. R., Hardy, C., Lawrence, T. & Nord, W. R. (eds.) The Sage Handbook of
Organization Studies. London: Sage,pp.215-254
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References
Lawrence, T. B., Suddaby, R. & Leca, B. (2009) Institutional Work: Actors
and Agency in Institutional Studies of Organizations. New York:
Cambridge university press.
Meyer, John W. and Rowan, Brian (1977)Institutionalized organizations:
Formal structure as myth and ceremony. American journal of sociology
83: 340363.
Meyer, J. W., Boli, J., Thomas, G. M. & Ramirez, F. O. (1997) World Society
and the NationState. American Journal of Sociology, 103(1), pp.144181.
Oliver,C. (1991) Strategic responses to institutional processes. Academy of
Management Review. Vol.16 (1) : 145-179
Scott, W. Richard 1995. Institutions and Organizations. Thousand Oaks, CA:
Sage
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