The Evolution of Institutional Theory PACS 25 April Revised (1)

8/16/2019 The Evolution of Institutional Theory PACS 25 April Revised (1)

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The Evolution of Institut Theory and Its Potential

in Accounting ResearchBy: Ersa Tri Wahyuni,PhD

Padjadjaran Accounting ollo!uiu" #eries, $%th A&ril $'()

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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:

#ource: #cott, $''(Padjadjaran Accounting ollo!uiu" #eries, $%th A&ril $'()

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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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The Evolution of Institutional Theory PACS 25 April Revised (1)

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