# Institutional Theory Flashcards Preview

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Flashcards in # Institutional Theory Deck (9)
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1
Q

Define institutions

A

Rules of game in a society

Structures and activities that provide stability and meaning to social behavior.

2
Q

What are the 3 pillars of institutions?

A

Regulative

  • Rules, regulation and policies that “promote certain types of behavior and restrict others”
  • Works through enforcement and coercion
  • Company’s confidentiality policies

Normative

  • Social norms beliefs that are socially shared an carried out by individuals
  • The “correct” way of doing things
  • E.g. Environmental attitude

Cognitive-cultural

  • Generally shared perceptions and values
  • Not always a logical rationale
  • Works through imitation
  • E.g. the recognition of individuals in a society
3
Q

Difference between normative and cognitive-cultural pillars*

A

Normative can be explained logically, cognitive-cultural cannot necessarily be explained logically.
E.g. The value and recognition of individuals in a society cannot be explained logically, but belongs to the cognitive-cultural pillar of institution.

4
Q

Examples of measures for each institutional pillar

A

Regulative
- Selected world governance indicators, e.g. Antitrust regulation

Normative
- Selected world governance indicators, .e.g. Government transparency

Cognitive-cultural
- Hofstede’s dimensions

5
Q

Levels of institutions

A
  • World
  • Country / society
  • Industry / organizational field
  • Organization
  • Organizational department / subsystem
6
Q

Isomorphism

A

Becoming similar, a process of homogenization. “ Constraining process that forces one unit in a population to resemble other units that face the same set of environmental conditions”

7
Q

What are the types of isomorphism and how do they relate to pillars of institutions?

A

Coercive isomorphism - regulative: legislative pressures force the firm to conform

Normative isomorphism - normative: Customer preferences & expectations force the firm to adapt

Mimetic isomorphism - cognitive-cultural: Uncertainty about suitability of product or practice and habits and inertia force the firm to imitate.

8
Q

What is organizational legitimacy according to institutional theory

A

Legitimacy: acceptance through conforming to rules and norms .
Organization strive for legitimacy &credibility – can gain it through isomorphism. Is consistent with profit maximization.

9
Q

Describe imitation

A

2 types:

  • Frequency based: follow the crowd / do what most do
  • Trait-based: Do what the successful do