Institutions Under a Microscope: Experimental Methods in Institutional Theory

Abstract

Recent literature on institutional theory is replete with calls for greater use of experimental designs to explore the micro-foundations of institutions (Bitektine, 2011; Green, 2004; Kennedy and Fiss, 2009). Well-conceived and -developed experiments can enable institutional theory scholars not only to scrutinize difficult-to-isolate relationships (David and Bitektine, 2009), but also to explore institutions as multilevel processes that form the foundation of organizational life (Thornton et al., 2012). Nevertheless, experimental methods have yet to occupy their due place in the toolkit of institutional researchers. The purpose of this chapter is to draw researchers’ attention to the potential of experiments to generate interesting and relevant insights for understanding institutions in organizational contexts, as well as to provide some guidance for scholars interested in using experimental studies in institutional theory research. In the following sections, we briefly elaborate the importance of micro-level processes in institutional theory, discuss the advantages and challenges of experimental studies of institutional practices, and review examples of extant experimental research in institutional theory, with an emphasis on their methodological distinctions and the theoretical questions that they address. We close with practical recommendations for the design and implementation of experimental studies exploring micro-foundations of institutions, and a discussion of promising future directions for experimental research in institutional theory.