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The Evolution of Institut Theory and Its Potential
in Accounting ResearchBy: Ersa Tri Wahyuni,PhD
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Agenda
Introduction to Institution Theory
*e+ Institutional Theory
Institutional ogic
Institutional Entre&reneurshi&
Institutional Wor-
World #ociety Theory
.uestions and Ans+ers
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What is an Institution/
Institutions are social structures that have attained a high
resilience0 1They2 are co"&osed of cultural3cognitive, nor"regulative ele"ents that, together +ith associated activitieresources, &rovide sta4ility and "eaning to social life5
Institutions are trans"itted 4y various ty&es of carriers, incsy"4olic syste"s, relational syste"s, routines, and artifaco&erate at di6erent levels of jurisdiction, fro" the +orld sylocali7ed inter&ersonal relationshi&s0 Institutions 4y de8nitsta4ility 4ut are su4ject to change &rocesses, 4oth incre"ediscontinuous95 #cott, (;;%<
Institutions are social structures that are constructed 4y hu&rovide sta4ility and "eaning to life0 They are the =rules ofthat 4oth ena4le and constrain hu"an 4ehaviour0
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E@a"&les of Institutions5
rganisations
o"&anies
Industry
Universities
arriage
A class roo"
A household
Religions C hurch C os!ue
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Pillars of Institutions
Pillars
Regulative *or"ative ultura
Basis ofco"&liance
E@&edience #ocial 4ligation Ta-en3fshared
Basis of order Regulative rules Bindinge@&ectations
onsul
echanis"s oercive *or"ative i"eti
ogic Instru"entality A&&ro&riateness rthod
Indicators Rules, a+s,#anctions
erti8cation,Accreditation
o""#hared
Basis of legiti"acy egallysanctioned
orallygoverned
o"&rRecognultura
Institution constraints organisational activity through three di6di"ensions:
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*e+ Institutional Theory
What "a-es organisations so si"ilar/
I#RPI# oercive, i"etic, *or"ative
rganisational Iso"or&his" increase +ith:
Resource centralisation and De&endency
Foal a"4iguity and technical uncertainty
Professionalisation
#tructuration
WG/ To 4e vie+ed legiti"ate#ource: Diaggio and Po+ell (;H?<
The IsDecou
What 4eco"i"&orconse
egiti"a&&ro
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Institutions and egiti"acy
rgani7ations re!uire "ore than "aterial resources and techninfor"ation, they also need social acce&ta4ility and credi4ility $'''<
E@a"&le of legiti"acy:
In&ut egiti"acy and ut&ut egiti"acy Bot7e" Do4usch, $'($
Technical egiti"acy e0g : I#<
What can i"&rove legiti"acy: Due &rocess
egal #u&&ort
Endorse"ent fro" &rofessional
Di6usion of ado&tion 4y industry
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o+ Institutions Res&onse to&ressures/
liver (;;(< Jra"e+or- #trategic Res&onse toinstitutional &ressures
A!uiescence
o"&ro"ise
Avoidance
De8ance
ani&ulations
liver (;;$< discussedLdeinstutionali7ation9
liver (;;(< fra"e+or- is &o&ulaanalyse organisations +ith c
The conce&t of deinstitutionali7atio
#udda4y $'')< to devel
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Institutional ogic
The ter" Linstitutional logic9 +as introduced 4y Alford and Jried
to descri4e the contradictory &ractices and 4eliefs inherent in thof "odern +estern societies0
ore institutions of society : a&italist "ar-et, 4ureaucratic #tatDe"ocracy and Religion, 3 each has a central logic that constrai"eans and ends of individual 4ehaviours0
An institutional logic is the +ay of &articular social +orld +or-s0
IJR# is an accounting standard, +hich is a socially constructed &result of &olitical struggle of interested actors0 Does IJR# has logthe logics of IJR#/
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Institutional ogic
Usually used to descri4e institutional change in a "icro lev
Used e@tensively in "anage"ent accounting case studies
#o"eti"e can 4eco"e a &aint 4rush ter" +here &eo&le usLinstitutional logic9 +ithout a dee&er understanding
Institutional logic is not very easy to 8nd0
*e+ develo&"ent of this theory is Lhy4rid logic9 and L situ E@a"&le of institutional logics for the case of the &rivatisat
co"&any>s: Pu4lic #ervice, technical eMciency, co""ercia
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Institutional Entre&reneurshi&Diaggio, (;;H N Battilana, eca, Bo@en4au" : $'';<
Who hange Institutions/
The Parado@ of E"4edded Agency : an an Individual reallinstitution/
Get "any evidence : Fandhi, artin uther Oing, Elvis Presley, T+eedie,
o+ to distinguish Institutional Entre&reneur and just -ey a
Institutional Entre&reneurshi& Diaggio,(;HH
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Institutional Wor-
Institutional Wor- a+rence and #udda4y, $'')N a+ren$'';<
Institutional +or- re&resents a ne+ idea connecting, 4ridging the +or- of institutional entre&reneurshi&, institutional changeand deinstitutionalisations a+rence et al0, $'';<
Institutional +or- : Lthe &ur&osive action of individuals and org
ai"ed at creating, "aintaining and disru&ting institutions90 #udda4y $'')<
Institutional Wor- used three categories: reating InstitutioDisru&ting Institution and aintaining Institutions
Jocus on the +or- and actions of actors +hich change inst
#o"e case studies of institutional +or- are focusing on Lcrinstitutions
Usually are used at organisational level or 8eld level of stu
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World #ociety Theory
World #ociety Theory eyer, (;;K N Drori $''?N Drori et
World society theory sees glo4alisation as "ore than intense +transaction 4ut also includes an additional conce&tual shift to+universal, and is thus a cultural &rocess in addition to 4eing an&olitical &rocess
#ociological theories
oderni7ation theory
World #yste"s Theory W#T< C de&endency theory
World &olity theory WPT< C institutional theory
World #ociety Theory see the +orld as a Lvillage9 +ith its o+n&olity0 Flo4ali7ation are the result of &eo&le ado&ting the L+o
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References
Battilana, 0, eca, B and Bo@en4au", E0 $'';0 $ o+ Actors han
To+ards a Theory of Institutional Entre&reneurshi&0 The Academ Annals, ?, )%3('K0Bot7e", #0, Do4usch, 0 $'($
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References
a+rence, T0 B0, #udda4y, R0 eca, B0 $'';< Institutional !and Agency in Institutional Studies of Organizations0 *e+ a"4ridge university &ress0
eyer, ohn W0 and Ro+an, Brian (;KK
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Than- Gou
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