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Management Theories

Institutional Theory

Behavioral, Human Relations and Contingency Theories

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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
Cross-Tradition Connections

Associated With

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

Sources
1. Wikipedia, Institutional Theory
WikipediaWikipedia, Institutional theory lead section
Quote, 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.
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1. Wikipedia, Institutional Theory
WikipediaWikipedia, Institutional theory, isomorphism discussion
Quote, 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)
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