The purpose of this study is to analyze the interacting internal and environmental variables of an institutionalized organizational perspective. It departs from the assumption that the institutional analysis of the interacting relations between the internal and environmental variables are critical to explain the coevolution development of organizations. The method employed originated in the conceptual, theoretical, and empirical literature review as the basis for the application of a meta-cognitive and meta-analytical methods. The analysis concludes that the interactions between the internal and environmental variables using the institutional theory makes relevant contributions to the organizational studies.
TopIntroduction
Debates and controversies on institutional perspectives permeates research on organizations and management. In early 1990s, institutional discussions derived in criticisms despite those organizations do not respond similarly to conflicting institutional processes (Greenwood et al., 2008). Organization studies have abundant research however not yet in transition studies. The analytical perspective of organizational institutionalism and transition studies diverge in epistemology to some degree. Institutional complexity cannot transpose these fields but provide boundary objects for integrative theoretical frameworks (Fuenfschilling, 2019).
Institutionalist theory has evolved into a dominant framework in management and organizational studies and becoming useful for researching the interactions between business and society interact (Greenwood et al., 2017; Brammer et al., 2012). Institutional analysis is a critical examination of conventional organizational models and development premises of management models more morally justifiable that the corporation as the voluntary association of shareholders who own the enterprise and that the only members that count (Selznick, 1996). An arrangement of levels of analysis can identify factors that exert strength over those of lesser strength over the social interactions of an organizational authority or institution (Hallet and Hawbaker, 2021).
However, the new organizational theory applied in organization studies questions the variety of institutional concepts, theoretical arguments and applicability (Peci, 2006). Institutional organizationalism in transition studies has a complicated relationship with fundamental differences, complementarities, and contradictions over basic epistemologies, ontologies, and empirical issues concerning institutional logics enacted at the macro and micro-organizational levels aimed at managing strategically incompatible moral expectations (Greenwood et al., 2017; Fuenfschilling, 2019). Thus, institutional logics and resource dependence motivate organizational actors (Furnari, 2016; Palmer et al., 2013).
An institution is a perennial social practice in any specific organizational field (Baratter 2014; Baratter, et al. 2010). Embedded institutions and institutional embeddedness operate at global, nation-state organizational field, industry, organization and interpersonal levels of analysis (Scott, 1995, 2014). This concept of institution is as others developed in economics and organizational studies (Hodson, 2006, North, 1991). Business and society scholarship uses the theoretical framework of the institutional perspective to approach organizational research to values. The coevolution of organizational ethics from a descriptive approach although does not assess the normative perspective (Haveman & Rao, 1997). Studies in organizational economics analyze the effects of formal and informal institutional distance on outcome variables and construct measures (Zhou, Xie, & Wang, 2016; Sartor & Beamish, 2014; Schwens, Eiche, & Kabst, 2011). The institutional distance construct develops the concepts of institutional embeddedness across borders and its institutional distance effects on organizational outcomes.