Abstract
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 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 permeate research on organizations and management. In the early 1990s, institutional discussions derived in criticisms despite the fact that 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).
The new organizational theory applied in organizational 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 on basic epistemologies, ontologies and empirical issues concerning with the institutional logics enacted at macro and micro organizational levels aimed to manage strategically incompatible moral expectations (Greenwood et al., 2017; Fuenfschilling, 2019). 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; Scott, 2014). This concept of institution is like others developed in economics and organizational studies (Hodson, 2006; North, 1991).
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 the levels of analysis can separate the factors to exert force on each other, which count on the less force has over social interactions of an organizational authority or institution, the configurations is more loosely coupled. Institutional and organizational tight and loosely coupled to social interactions (Hallet & Hawbaker, 2021). Social interactions are loosely coupled to institutional and organizational commitments.
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 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 et al., 2016; Sartor & Beamish, 2014; Schwens et al., 2011). The institutional distance construct develops the concepts of institutional embeddedness across borders and its institutional distance effects on organizational outcomes.
Analysis and synthesis of the theoretical and empirical literature review are aimed to identify robust findings in institutional distance on organizational outcomes including choices on locations, entry modes, performance, gaps, and problems, among others. Research on institutional theory should focus on the institutional forces leading organizations to be receptive to social needs. Institutional theory relies on a nested approach that conceptualizes nested individuals inside organizations nested inside institutions (Hallett & Hawbaker, 2021). Maintaining a critical view on intertwining institutions, organizations, and social interaction influencing social outcomes aimed to improve social life.
Key Terms in this Chapter
Organizational Behavior: is a kind of evaluative circle that seeks to clarify how people behave within an organization, why they act that way and what are the impacts of their ways of acting.
Complexity: The quality of what is composed of various elements.
Organizational Variables: A qualitative nature, and a set of attributes, in time and space, which give significance to its raison d'être, its object that generates the administrative dynamics of the organization and its respective management philosophy.
Organizational Culture: Those norms and values by which a company is governed. Some principles related to the structure of the company, with the methods of work performance, and even the way in which the staff is related. It is, in Roman Paladino, the psychology of the organization, its core.
Organizational Structure: The way in which the functions and responsibilities that each member has to fulfill within a company are assigned to achieve the proposed objectives.
Uncertainty: Refers to epistemic anomalies involving imperfect or unknown information. Applies to predictions of future events.
Strategy: The art of projecting and directing military operations, especially those of war. A series of well-considered actions, directed towards a specific goal.
Process: A process is a sequence of actions that are carried out to achieve a specific end.