Institutional Theory: The Basics

What Are Institutions?

• Definition by Scott and Meer: Institutions are symbolic and behavioral systems containing representational, constitutional, and normative rules, along with regulatory mechanisms that define a common meaning system, giving rise to distinctive actors and action routines.
• Definition by My and Rowen: Institutions are social processes, obligations, or actualities that take on a rule-like status in social thought or action.
• Role: Institutions are fundamental to social, political, and organizational life, shaping behavior, perceptions, and choices.
• Components: Include governance structures, social arrangements, norms, rules, and ways of thinking and organizing.

Distinction

• Institutions vs. Organizations: Institutions are not organizations.

Why Do Institutions Arise and Persist?

• Arise: Reduce transaction costs and meet social needs.
• Persist: Change is costly, and individuals are embedded within institutions.
• Purpose: Social legitimacy and survival.

Criticisms

• Structures may not always coordinate and control activities effectively.
• Rules may be violated, decisions unimplemented, and evaluations vague.
• External norms, called rationalized myths, influence organizations.
• Activities may be taken for granted, leading to a loose coupling between structure and action.

Organizational Isomorphism

• Definition: Similarity or identity of form, shape, or structure.
• Process: Helps ensure survival and protection of the institution's technical core.

Three Pillars of Institutional Theory

• Regulative:
  • Operates by coercive isomorphism.
  • Compliance is due to expedience.
  • Indicators: Rules, laws, sanctions.
• Normative:
  • Works through normative isomorphism.
  • Compliance through social obligation.
  • Indicators: Certifications, accreditations.
• Cognitive:
  • Works through mimetic isomorphism.
  • Compliance based on what's taken for granted.
  • Indicator: Prevalence.

Application Example: Education

• Regulative: Schools must maintain a safe environment.
• Normative: Accreditations and certifications.
• Cognitive: Presence of teachers and classrooms.

Interaction of Pillars

• Balance: The interaction between the three pillars supports educational institutions.
• Change: As elements like online instruction change, cognitive and normative pillars adjust to maintain balance.
• Isomorphism: Ensures institutions maintain social legitimacy and survival.

This overview captures the essence of institutional theory, emphasizing the interaction of regulative, normative, and cognitive pillars in maintaining institutional structures and legitimacy.