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Management and Organization Theory: A Jossey-Bass Reader by Jeffrey A. Miles

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17

Institutional Theory

Institutional theory addresses the central question of why all organizations in a field tend to look and act the same (DiMaggio & Powell, 1983). The core concept of institutional theory is that organizational structures and processes tend to acquire meaning and achieve stability in their own right, rather than on the basis of their effectiveness and efficiency in achieving desired ends, such as the mission and goals of the organization (Lincoln, 1995). In the initial stages of the organizational life cycle, there is considerable variety in organizational forms. Over time, however, there is startling homogeneity in organizational structures and practices.

Institutional theory posits that institutions are a critical component ...

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