Institutional Theory Research Articles

Précis: The Mind-Body Politic

The Mind-Body Politic is a study in the new discipline of political philosophy of mind, that aims to develop an embodied and enactive theory of social institutions, building on our 2009 study of the mind-body relation and mental causation, Embodied Minds in Action. In this sequel, we distinguish between (i) destructive, deforming social institutions–characteristic of contemporary neoliberal nation-states, and (ii) constructive, enabling social institutions, and defend what we call the mindshaping thesis and the enactive-transformative principle. The upshot is an activist, transformative philosophical theory.

Impact of Institutional Isomorphism on Gender Diversity on the Boards of Sport Organizations in Japan

This study utilized institutional theory to examine how the Governance Code implemented in Japan in 2019 increased the number of female board members in national sport federations (NF) recognized by the Japanese Olympic Committee (JOC). Using the three mechanisms of antecedents that lead to changes in institutional isomorphism as a framework (coercive isomorphism, mimetic processes, and normative pressures), we conducted semi-structured interviews with board members of sport organizations and analyzed the obtained data using thematic analysis. The results revealed institutional isomorphism influenced gender diversity on NF boards and identified the mechanisms that promote gender diversity on the boards of sport organizations.

Electric Vehicle Battery Remanufacturing: Circular Economy Leadership and Workforce Development

Given the increasing momentum globally towards sustainable transportation, the remanufacturing of used electric vehicle lithium-ion batteries (EV LIBs) emerges as a critical opportunity to promote the principles of the circular economy. Existing research highlights the significance of remanufacturing in resource conservation and waste reduction. Nevertheless, detailed insights into South Africa’s (SA’s) specific capabilities and strategic approaches in the context of used EV LIBs remain sparse. By utilizing in-depth interviews with fifteen key industry stakeholders and drawing on institutional theory, this qualitative study evaluates SA’s infrastructure, technical expertise, and regulatory frameworks in the EV LIB remanufacturing sector to address this gap. The findings reveal proactive strategies, including technical expertise, sustainable infrastructure, and robust regulatory frameworks aligned with global standards. This study proposes strategic initiatives like the Interdisciplinary Innovation Hub and Mobile Remanufacturing Labs, which are analytically derived from stakeholder insights and aim to predict potential pathways for workforce development, especially in rural areas. Innovative training programs, including the Virtual Reality Consortium, Circular Economy Institutes, and the Real-world Challenges Program, will ensure a skilled workforce committed to sustainability and circular economy principles. The conclusions highlight SA’s potential to become a leader in EV LIB remanufacturing by integrating circular economy principles, enhancing technical expertise, and fostering international collaboration.

Do effective and sustainable corporate governance mechanisms affect the relevance of non‐financial information?

AbstractThe aim of this paper is to investigate the value relevance of non‐financial information (NFI) under the EU Directive 2014/95/EU, since its increasing importance over recent years. Adopting a panel data set with all listed firms in Germany, Spain, France and Italy, we obtain a final sample of 10,025 firms‐year‐observations in the period from 2017 to 2021. Through the lens of institutional theory, it emerges that firms adopt coercive, mimetic and normative pressure to be recognised by investors in their NFI practices. Furthermore, the presence of effective and sustainable corporate governance mechanisms improve accounting information (namely, Earnings Per Shares and Book Value of Equity Per Shares) and NFI. The contribution of this study is twofold. First of all, it enriches the literature about value relevance of NFI; second, it is beneficial for practitioners, such as investors, policy makers and regulators on the strategic levels of effective corporate governance mechanisms. NFI has a positive effect on capital market and improve investors' decision‐making by providing information on diversity, environmental matters, social and employees matters, human rights and anti‐corruption and bribery matters, which will favour the firms' implementation of more sustainable actions. Indeed, if investors recognise the importance of a certain firm's NFI, the market value of that firm will increase with consequent reputational and economic‐financial benefits. To the best of authors' knowledge, this is the first study that investigates the role of effective and sustainable corporate governance mechanisms on the value relevance of NFI.

Agile transformation in uncertain times: exploring diffusion strategies and organisational maturity

ABSTRACT The turbulent and dynamic environment in which organisations are evolving today forces them to adapt in a timely manner and strengthen their resilience. Agility represents one of the recognised capacities to reach that resilience in a VUCA environment. However, consensus is not yet reached regarding how to become agile, and which ‘agility’ better matches the organisation’s needs and trajectory. Based on a qualitative exploratory approach of 15 expert narratives, dominantly from IT field, this study seeks to answer how does the adoption of agility in companies operating in uncertain business environments affect and reflect their level of organisational maturity. The research analyses the variety of strategies used by organisations to embrace agility and how these strategies correlate with levels of organisational maturity. Utilising New Institutional Theory (NIT) – a widely acknowledged framework in modern social sciences – this research uncovers the agility triggers in the organisation. Moreover, the findings highlight a continuum to agile organisation of three stages. The research also takes a fresh look at the concept of maturity. Maturity in the context of agile transformation lies a convergence point that reflects a global coherence in the system: the individual, the collective, the organisational, as well as the external, that of the organisations implementing agile practices.

Nudging manufacturing small and medium enterprises in developing communities to energy management: exploring the role of institutional pressure dimensions

Purpose This paper aims to investigate whether all the dimensions of institutional pressures matter for energy management (EM) of manufacturing small and medium enterprises using evidence from Uganda. Design/methodology/approach This study used a cross-sectional design using evidence from 195 manufacturing small and medium enterprises in Uganda. The study was conducted by administering a questionnaire to obtain quantitative data which were analyzed using Smart Partial Least Square Structural Equation Modeling. Findings The findings revealed that two dimensions of institutional pressures (coercive and mimetic) positively and significantly predict EM, unlike normative pressures. Notable is that coercive pressures contribute more to EM than mimetic pressures. Research limitations/implications This study uses a quantitative design; thus, future studies through interviews would offer more knowledge on EM. The government should reinforce regulations to achieve sustainable energy for all communities. Additionally, governments and industry associations should pay attention to the critical pressures (coercive and mimetic) to step up EM. Moreso, enterprise managers should comprehend government regulations and peers’ actions for effective EM. Originality/value This study contributes to EM literature by using institutional theory to examine the contribution of individual dimensions of institutional pressures to EM from the context.

Integrating ecosystems: The synergistic effects of digital innovation hubs on start-up growth

Background: South Africa faces significant socio-economic challenges, with unemployment rate. This highlights the need for economic strategies to generate employment, and start-ups are crucial in this context, as they foster innovation, create jobs and increase competitiveness.Aim: The study aims to investigate how digital innovation hubs (DIHs) influence start-up growth, focusing on their roles and functions.Setting: The research is set within the context of DIHs in Africa, specifically examining the 12 DIHs established under the AEDIBNET programme.Methods: A qualitative methodology was employed, using semi-structured interviews with six DIH managers and 28 entrepreneurs or start-up founders.Results: Supporting start-up growth, holistic development support and integrated ecosystem enhancement by DIHs emerged as key themes. These factors foster a conducive environment for innovation and sustained growth.Conclusion: Digital innovation hubs play a crucial role in supporting start-up growth by providing comprehensive and integrated support systems. Their functions collectively enhance start-up growth.Contribution: This study fills a critical gap in the existing literature on DIHs, offering empirical insights into their impact on start-up growth within the African context. The findings provide valuable implications for policymakers, practitioners and researchers aiming to foster the growth of start-ups. Additionally, the study integrates and expands upon knowledge spillover theory, institutional theory and cluster theory. It demonstrates how DIHs facilitate knowledge sharing, provide formal support structures, foster informal networks, and create and sustain entrepreneurial clusters.

Profit Tax as a Character of Regional Budget of Our Time

The authors develop approaches to tax decentralization based on the theory of imperfect institutions by T. Eggertsson, in terms of the critically important profit tax for regional budgets of Russia. We see the goal of our research in finding a balance between the action of formal rules and informal, social norms, technologies, and models for distributing the profits of the largest Russian companies as a tax base between the federal center of Russia and the regions depending on the actual location of employees and assets. The article is devoted to the action of a successful and unique formal rule of the tax institution for the Russian Federation – the formation of consolidated groups of taxpayers (CGT). The novelty of the article lies in the study of the phenomenon of transformation of the domestic system of paying profit tax in 2023 as a replacement of one formal rule (action of CGTs) with another formal rule – the introduction of a new excess profit tax for Russia. An empirical study of the regional distribution of payments of legal entities-payers of profit tax according to the formal rules of the CGTs from among the largest Russian companies registered outside Moscow was conducted. Based on the results of the study, a general conclusion was made about the acute contradiction of the current economic policy in Russia in the content of the tax institution: between the new informal social norm on territorial decentralization of the largest Russian companies and the opposite formal rules of tax centralization in terms of profit tax. In this regard, the current policy of coincidence of territorial and tax decentralization in terms of state-owned companies in China deserves attention.

Organizational Culture and Performance of Quasi-Public Institutions Within the Pension Industry in Kenya: A Case of Local Authorities Pension Trust

This study intended to examine the organizational culture and performance of quasi-public institutions within the pension industry in Kenya with a focus on Local Authorities Pension Trust. Key theories under review in this research paper were the Balance Score Card theory, Scheins organizational culture theory and Institutional theory. Descriptive research design was employed and utilized by this research. The 224 staff working in Local Authorities Pension Trust offices across the country formed the target population of this study. In order to determine the sample size, simple random sampling was utilized. For this research, the researcher utilized a questionnaire to collect data from responders. There were both open-ended and closed-ended questions on the survey. To determine the connection between organizational culture and performance, the researcher did a multiple regression analysis. Questionnaires were utilized for gathering quantitative data, which were then evaluated employing descriptive statistics in SPSS and displayed in the form of tables, pie charts, and bar graphs. The data gathered was leveraged to create pie charts, bar graphs, and tables that illustrated facts about the link between organizational culture and performance at Local Authorities Pension Trust. The study found that a balanced mix of clan culture, adhocracy culture, market culture and hierarchical culture had a positive significant effect on the performance of LAPTRUST. The study concludes that in a clan culture, employees are encouraged to participate in decision-making processes, share their ideas, and contribute to the overall success of the organization. The study recommended that the organization should encourage cross-functional teams and collaboration across departments to break down silos and promote innovation. The organization should invest in training programs that enhance employees' market knowledge and skills can contribute to a market culture. The organization should clearly define and communicate the roles and responsibilities of each level within the hierarchy, ensuring that employees understand their position and how it fits into the overall organizational structure.

Sustainability Management Accounting in Urban Development: A Case Study of an Egyptian State-Owned Enterprise

The public sector literature on sustainability management accounting (SMA) has grown significantly in recent years, with numerous theoretical and empirical studies examining the purported link between management accounting and corporate sustainability within organisations. However, despite this surge, prior studies have largely confined their analytical scope to traditional SMA issues, such as corporate social, environmental, and governance responsibilities. Their analyses have predominantly concentrated on largely investigated elements such as situational linkages, transformational dynamics, agency issues, resistance, and conflicts. This study aims to address these limitations by examining corporate SMA systems within the burgeoning field of urban development. It utilises institutional theory and a case study from Egypt, a developing country, to explore how urban development could impact adopting a corporate SMA system in politically sensitive state-owned enterprises (SOEs). Contrary to existing literature, the findings indicate that urban development has created financial pressures for national governments, which have used these as a political instrument to implement a corporate SMA system within related SOEs. Additionally, the findings highlight the significant role of management accountants as central figures in integrating and standardising a corporate SMA system into the daily practices of current executives through advanced enterprise resource planning (ERP) technology. Moreover, as a development of institutional theory, the findings demonstrate the influence of corporate SMA reports on the decision-making processes of national governments in the context of urban development.

Perceived Financial Value and the Adoption of the Cashless Payment System in the Matatu Transport Sector in Nairobi County, Kenya

Cashless payment systems have emerged as a transformative force in the global financial landscape, offering convenience and efficiency in transactions. Despite their widespread development, the adoption of these systems has been uneven, with only a select number of companies in specific countries making notable progress. This research investigated the correlation between perceived financial value and the adoption of cashless payment systems in Nairobi's Matatu sector. The central question was how perceived financial value influences this adoption. This research was grounded on institutional theory, the study used an explanatory research design with a target population of 1,176 Matatu SACCO managers and staff, from which a sample of 289 was selected using stratified and simple random sampling. Data was collected via a questionnaire, with validity assessed through Pearson Moment Correlation and reliability through the test-retest method. Quantitative analysis was conducted using SPSS. The findings revealed a significant impact of perceived financial value on cashless payment adoption (β=0.534, t=10.744, p<0.05) and a 67.9% positive correlation. The study concluded that a suitable legal and institutional framework is needed, requiring collaboration between the private and public sectors to support technological adoption among Matatu operators in Nairobi. In light of the study's findings, the researchers recommended that the lack of a suitable legal and institutional framework for e-payments necessitates a joint effort from both the private and public sectors to establish the necessary legal and institutional structures, thereby fostering an environment conducive to technology integration among Matatu operators in Nairobi and beyond.

E-Procurement Systems and Organizational Performance in Germany

Purpose: The aim of the study was to analyze the e-procurement systems and organizational performance in Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The implementation of e-procurement has streamlined procurement processes, reducing costs and improving efficiency through automation and better supplier management. Organizations adopting e-procurement systems report enhanced transparency, reduced procurement cycle times, and improved compliance with procurement regulations. Additionally, the data-driven nature of e-procurement allows for better decision-making and strategic sourcing, contributing to overall organizational effectiveness and competitiveness in the market. Unique Contribution to Theory, Practice and Policy: Technology acceptance model (TAM), resource-based view (RBV) & institutional theory may be used to anchor future studies on analyze the e-procurement systems and organizational performance in Germany. Establish regular and comprehensive training programs tailored to the needs of procurement staff to ensure effective utilization of e-procurement systems. Develop a national policy framework that encourages e-procurement adoption in both public and private sectors.

Globalization and Local Procurement: A Study of Supply Chain Dynamics in Australia and Bangladesh

Purpose: The aim of the study was to analyze the globalization and local procurement: a study of supply chain dynamics in Australia and Bangladesh. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on strategic sourcing's impact on cost reduction in Australia and Bangladesh manufacturing firms demonstrated significant positive results. It showed that strategic sourcing led to notable reductions in procurement costs, enhanced supplier management, negotiation, and risk mitigation strategies. The findings underscored the importance of aligning procurement strategies with organizational goals for sustainable cost reductions and competitive advantages in the sector. Unique Contribution to Theory, Practice and Policy: Resource dependence theory (RDT), transaction cost economics (TCE) & institutional theory may be used to anchor future studies on analyze the globalization and local procurement: a study of supply chain dynamics in Australia and Bangladesh. Businesses in both Australia and Bangladesh should prioritize building strong relationships with local suppliers to enhance supply chain resilience. Policymakers in both Australia and Bangladesh should create supportive regulatory frameworks that promote local procurement practices.

Emissions trading, corporate social responsibility, and innovation quality -based on the perspective of formal and informal institutions

ABSTRACT High-quality green innovation plays a significant strategic support role in high-quality economic developments. Drawing upon institutional theory and property rights theory, this paper investigates the drivers of green innovation quality (GIQ) from the perspectives of formal and informal institutions. Emissions Trading Schemes (ETS) represent formal institutions designed and implemented by governments, while Corporate Social Responsibility (CSR) represents informal institutions. The study finds that ETS significantly enhances GIQ. Moreover, CSR significantly and positively moderated the relationship between ETS and GIQ, indicating that the synergistic interaction between formal and informal institutions stimulates superior innovation quality. This paper contributes to the understanding of the relationship among government regulations, corporate ethics and responsibility, and innovation quality. This paper offers recommendations for environmental policy and management strategies.

Procurement Ethics and Corruption: An Examination of Italy and Zimbabwe

Purpose: The aim of the study was to analyze the procurement ethics and corruption: an examination of Italy and Zimbabwe. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on procurement ethics and corruption in Italy and Zimbabwe reveals significant contrasts between the two countries. In Italy, procurement processes are more structured, with stringent regulations aimed at curbing corruption, yet challenges persist, particularly in the enforcement of these regulations. In contrast, Zimbabwe faces more profound issues with systemic corruption deeply embedded in its procurement practices, exacerbated by weaker institutional frameworks and lack of transparency. Unique Contribution to Theory, Practice and Policy: Principal-agent theory, institutional theory & ethical decision-making theory may be used to anchor future studies on analyze the procurement ethics and corruption: an examination of Italy and Zimbabwe. Organizations in both Italy and Zimbabwe should implement robust ethical training programs for procurement officials to promote integrity and accountability. Policymakers in Italy and Zimbabwe should collaborate to develop comprehensive anti-corruption frameworks that address the unique challenges faced in each country’s procurement landscape.

Impact of Regulatory Changes on Financial Market Stability in Germany

Purpose: The aim of the study was to examine the impact of regulatory changes on financial market stability in Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The impact of regulatory changes on financial market stability in Germany has been significant, contributing to a more resilient financial system. Stricter regulations, particularly after the 2008 financial crisis, have enhanced risk management practices, increased capital requirements for banks, and improved transparency in financial transactions. These measures have reduced systemic risks and bolstered investor confidence, helping to maintain market stability even during periods of economic uncertainty. However, the increased regulatory burden has also posed challenges for financial institutions, leading to higher compliance costs and adjustments in business strategies to meet new standards. Unique Contribution to Theory, Practice and Policy: Theory of financial regulation, adaptive market hypothesis (AMH) & the institutional theory may be used to anchor future studies of the impact of regulatory changes on financial market stability in Germany. Practically, financial institutions and market participants need to adapt to evolving regulatory environments with robust risk management and compliance strategies. Policymakers should ensure that regulatory frameworks are designed to promote financial stability while accommodating the needs of financial institutions.

Transcend local for global: ESG as a legitimacy signal in the global expansion of emerging multinational enterprises

Emerging market multinational enterprises (EMNEs) are under increasing pressure to demonstrate robust environmental, social, and governance (ESG) as they expand globally. However, existing research has not thoroughly examined the theoretical relationship between ESG disclosure and the degree of internationalisation of EMNEs. This study addresses this gap by integrating institutional and signalling theories, revealing that superior ESG is positively associated with higher levels of EMNE internationalisation. This relationship is mediated by international financing capabilities and moderated by media attention. The study demonstrates that strategic initiatives related to ESG disclosure can serve as signals of legitimacy for EMNEs navigating institutional complexities on a global scale. These findings are supported by an empirical analysis of panel data from 2011 to 2020, providing theoretical insights into ESG signalling mechanisms. Practically, proactive ESG strategies can offer a competitive advantage for EMNEs as they manage complex foreign expansions amidst growing demands for responsible business conduct.

Institutionalising degrowth regime: a review and analysis of degrowth transition proposals

AbstractThe degrowth project proposes a fundamental reorganisation of contemporary society. The existing literature focuses on explaining why degrowth is needed to tackle the multiple socioecological crises of our time and what needs to change in contemporary society. Recently, there have been explicit calls to moving on to thinking about the question of how a degrowth transition could be achieved. In this task, we identify the ‘end’ of the vision, that is, the cornerstones of a degrowth society, and focus on the suggested changes leading there. Therefore, we conceptualise a degrowth society as a regime that can be studied with the help of institutional theory and the change leading to a degrowth regime as a degrowth transition. To understand the constituents of such a regime, we conducted a systematic mapping of the degrowth literature by focusing on specific change proposals from 2000 to 2020. We analysed these change proposals in the framework of institutional theory and identified three overarching themes forming the backbone of a degrowth society: reduction, reorganisation and localisation. These themes represent the cultural–cognitive dimension of institutionalisation processes and entail varying degrees of normative and regulative dimensions. According to the degrowth change proposals in the literature, reduction is to be achieved mainly through top-down regulation, while reorganisation and localisation require a bottom-up approach to mobilising collective agency and changes in the normative orientation of society. Our analysis regarding the founding pillars of the institutional order of a degrowth society unveils essential signposts that could be considered when formulating policies and narratives compatible with a degrowth transition.

Environmental policies as engines for tourism eco-efficiency: quasi-experimental evidence

Determining the actual effectiveness of environmental policies is paramount for enhancing tourism eco-efficiency. However, few studies have systematically investigated the specific effects of such policies on tourism eco-efficiency. We utilize the slack-based measure data envelopment analysis model to assess tourism eco-efficiency across 30 Chinese provinces from 2003 to 2021. We delve into the environmental policy of China’s Ecological Civilization Pilot Zone, scrutinizing its institutional background and assessing its ramifications for tourism eco-efficiency within the framework of the “Driving forces-Pressure-State-Impact-Response” framework and institutional theory. Moreover, we empirically explore the causal link between this policy and tourism eco- efficiency by adopting the synthetic control and difference-in-differences approaches. Our findings indicate that the implementation of the National Ecological Civilization Pilot Zone policy has led to a 5.16% average enhancement in tourism eco-efficiency. Although significant improvements were observed in Fujian, Jiangxi, and Yunnan, Qinghai experienced a decline, as indicated by the synthetic control method. Furthermore, the impact extends spatially, manifesting both at the local level and as spatial spillover effects on the eco-efficiency of tourism in neighboring regions. These results confirm the policy’s effectiveness and highlight the need for devoting increased attention to economically slower-developing regions in sustainable tourism development.

Institutional Theory and Flight Schools: An Analysis of Conformity in the Skies

This study employs a comprehensive bibliometric and content analysis to explore the application of institutional theory within the context of flight schools and aviation education. Utilizing data extracted from the Web of Science (WoS) database, this research examines the most influential studies, authors, and research trends in this field from 2000 to 2023. The findings highlight the critical role of institutional pressures and logics in shaping the operations and evolution of flight schools. This study contributes to the existing literature by integrating institutional theory with bibliometric methods, offering a comprehensive understanding of the factors influencing aviation education and identifying areas for future research. Limitations include the dataset's restriction to publications indexed in the WoS and the basic NLP tools used for analysis. Future research should incorporate more advanced NLP techniques, consider additional databases, and explore the impact of emerging technologies on aviation education.