Institutional Theory Research Articles

Social Enterprises as Agents of Social Justice: A Rawlsian perspective on institutional capacity

Many scholars of organizations see social enterprise as a promising approach to advancing social justice but neglect to scrutinize the normative foundations and limitations of this optimism. This article draws on Rawlsian political philosophy to investigate whether and how social enterprises can support social justice. We propose that this perspective assigns organizations a duty to foster institutional capacity, a concept we define and elaborate. We investigate how this duty might apply specifically to social enterprises, given their characteristic features. We theorize six different mechanisms through which social enterprises might successfully discharge this duty. These results affirm the value of conversation between organizational studies and political philosophy and shed new light on debates regarding social enterprise, institutional theory, and several other topics.

How Does Internationalization Help Reputation? The Role of the Learning Gap

This study delves into the intangible effects of internationalization on reputation, and proposes a mechanism by which internationalization can lead to improved reputation. Grounded in institutional and signaling theories, we begin by proposing that internationalization signals learning advantages deriving from experience in host environments and responses to foreign institutional pressures. Then, we derive the learning gap construct from two principal dimensions of the diversity of location portfolio, namely home—host cognitive distance and power asymmetry; and posit that this learning gap explains the link between internationalization and reputation. Analyses based on the legal service industry demonstrate that while international diversification is important in predicting reputational benefits at home, its effect is mediated through the learning gap deriving from each firm's internationalization, underscoring potential advantages of home—host differences.

Exploring Environmental, Social and Governance research in the wake of COVID‐19: A bibliometric analysis of current trends and recommendations for future research

AbstractThis study offers a systematic review of the evolution and characteristics of research on corporate Environmental, Social, and Governance (ESG) performance, with a particular focus on changes influenced by the COVID‐19 pandemic. Using bibliometric analysis, this research examines 340 scholarly articles on ESG performance published between 2006 and January 2023, documenting the expansion of ESG research in the post‐COVID‐19 era. Our findings identify key ESG themes, including social responsibility, sustainability reporting, corporate strategy, financial performance, and environmental performance. The study introduces a theoretical framework rooted in the resource‐based view, legitimacy, institutional, and stakeholder theories to explore the financial impacts of ESG implementations during and after the COVID‐19 pandemic. It highlights the essential roles played by influential journals, authors, and countries such as China, the USA, and Italy, demonstrating the interdisciplinary growth of ESG studies. Additionally, the research underscores the pandemic's impact on ESG practices, stressing the necessity for standardized ESG metrics and the crucial role of regulatory frameworks. The study recommends adapting ESG frameworks to align with post‐pandemic realities and calls for the inclusion of both qualitative research and a global perspective in future ESG research.

Institutional Factors in Reproductive Decision-Making Among Large Families in Russia

Amidst pressing global challenges and internal demographic threats, it is crucial to understand the institutional dynamics shaping the well-being of large families. This study delves into the intricate web of institutional factors that influence the prosperity of such families, examining key theoretical frameworks including institutional theory, human and social capital theories, and concepts of family. The empirical investigation draws upon extensive data sources, encompassing population censuses spanning five decades (1970–2020) and the comprehensive 2021 All-Russian sociological study Demograficheskoe samochuvstvie regionov Rossii [Demographic Well-Being of the Regions of Russia]. We conducted 22 in-depth interviews with members of large families across 10 regions. These interviews gave us a nuanced picture of the trends in family structure and the reasons behind reproductive decisions within these families. While institutional support is viewed as a “bonus” rather than a decisive factor in reproductive decisions, parents require various resources, including material, temporal, socio-psychological, informational, and educational resources, to develop necessary family and human capital skills. Furthermore, the study identifies the institutional conditions and resources crucial for bolstering the well-being of large families as well as the importance of effective family policies.

Hong Kong’s changing regulatory approaches to corporate environmental, social, and governance (‘ESG’) disclosure: an evidence-based assessment

ABSTRACT Though the Stock Exchange of Hong Kong has heightened the environmental, social, and governance (‘ESG’) reporting regulation throughout the past eight years, little of the existing scholarship has investigated Hong Kong-listed companies’ ESG reporting performance. This research aims to fill this gap by examining how the tightening of ESG reporting regulations affects environmental disclosure quality of Hong Kong-listed Chinese companies. Drawing on legitimacy theory and institutional theory, this study constructs a theoretical framework tailored to Hong Kong-listed Chinese companies. Using a sample comprising ESG reports of 100 Hong Kong-listed Chinese companies in financial years 2015–2021, the analysis shows that environmental disclosure quality was on a rising trend in the wake of stricter ESG reporting regulations. Moreover, this study contributes to the existing literature by differentiating the applicability of legitimacy theory and institutional theory to ESG reporting performance in Hong Kong from that in the western developed economies.

Institutional pressure and low carbon innovation policy: the role of EMS, environmental interpretations and governance heterogeneity

As the global community deals with the urgent need for sustainable development, the formulation and implementation of effective low carbon innovation policies have emerged as a critical challenge. However, the extant literature is unclear in examining low carbon innovation policy. Underpinned by institutional theory, the current study addresses the role of institutional pressure in the development of low carbon innovation policies. Additionally, the study examines the role of environmental management systems as a mediation and environmental interpretations and governance heterogeneity as moderators. Methodologically, the data were collected from the manufacturing sector of Pakistan. The findings suggest that institutional pressure greatly influences low carbon innovation policies. Furthermore, the findings from environmental management systems strongly suggest that they significantly encourage institutional pressure on low carbon innovation. Additionally, the roles of environmental interpretations and governance heterogeneity have a significant effect on the relationship. We use a non-profitability sampling technique. In October 2023, a total of 432 questionnaires were disseminated to manufacturing firms, yielding 299 valid responses for Time-1 and Time-2, respectively.

The impact of cross-organizational private relationships on cooperative behavior in construction projects: evidence from Chinese construction industry

PurposeAntagonistic relationship among the participants of construction projects has significantly improved, and further improving cooperation quality are committed. In this context, expanding new ways to improve cooperation quality has become a new topic in cooperation research. This study is dedicated to exploring the mechanism of cross-organizational private relationships on cooperative behaviors, which is rarely addressed in current research on construction projects, and provides reference for the rational use of cross-organizational private relationships.Design/methodology/approachBased on analysis of studies related to relational governance theory, institutional theory and project complexity, this study constructs the theoretical model. This study uses survey data from 395 construction professionals in China to test the theoretical model by using structural equation modeling (SEM) and explains the direct and indirect mechanism of cross-organizational private relationships on cooperation behavior.Findings(1) Cross-organizational private relationships have direct and indirect facilitating effect on cooperation behavior. (2) Relational norms as mediating variables contribute to the expansion of the positive effects of cross-organizational private relationships on cooperation behavior. (3) Institutional environment and project complexity have the moderating effect between cross-organizational private relationships and cooperation behavior.Originality/valueThis research investigates the impact mechanisms and boundary conditions of cross-organizational private relationships at the micro level on the cooperative behaviors in construction projects and conducts empirical research. It is a topic that has not been adequately researched in the field of project management. The research results expand the scope of research on relational governance and deepen the research on the antecedents of relational norms. It provides the base for the proposed contingency theory of relational governance.

Sustainability communication in marketing: a literature review

Purpose This study aims to explore the foundations and current research streams of sustainability communication (SC) within the marketing field through a comprehensive analysis of the existing literature. Furthermore, it identifies promising areas, gaps, and guides for future contributions in SC literature. Design/methodology/approach This study relies on a sample of 103 articles published in high-ranked marketing journals. Through co-citation and qualitative thematic analyses, it examines a network over the foundations and central themes in current literature. Findings In the marketing field, the foundations of SC rest on institutional and stakeholder theories, corporate social responsibility (CSR) communication and its effectiveness, green advertising, ethical consumerism and marketing strategies, and social marketing for sustainable consumption. Additionally, the analysis reveals four core current themes: reporting sustainability, sustainability advertising, consumer reactions, and promoting pro-sustainable behaviour. Research limitations/implications This paper defines the foundations and boundaries of SC in marketing based on a comprehensive evaluation of existing research. By doing so, it offers a valuable reference for future research, enabling scholars to understand better the past and current state of SC in marketing and to identify areas for further investigation. Practical implications Businesses and marketers can use the findings to develop more effective SC strategies and to focus on the main topics that require their attention. Social implications This research is of societal importance because it deepens our understanding of SC in marketing. It illuminates uncharted territory and helps decision-makers across sectors create a more sustainable future. In essence, this research enriches society by promoting sustainability awareness and guiding the development of practices that emphasize the value of SC. Originality/value This study advances previous literature reviews on SC in the marketing field by providing a roadmap for researchers to delve deeper and contribute to the field of SC in marketing, advancing our understanding of the importance of organizations effectively communicating their sustainability strategies to stakeholders.

The institutionalisation of XBRL in a developing capital market: the Indonesian regulators’ and filers’ perspective

Purpose Drawing on institutional theory analytical perspectives of theorisation and translation, this study aims to explore the institutionalisation of eXtensible Business Reporting Language (XBRL) in Indonesia from a regulatory and filer perspective. Design/methodology/approach The Indonesian capital market offers a unique case of the integration of XBRL regulatory reporting between multiple regulators and a transfer from capital market regulation to state-level regulation. This study uses semi-structured interviews with key actors employed with Indonesian XBRL-regulatory bodies and listed companies (filers). Findings External pressures, monitoring issues and tensions in the implementation process were instrumental in the theorisation and translation of XBRL in Indonesia. Specifically, the findings show that choices made with respect to XBRL regulation and implementation created tensions between XBRL reporting fulfilling a monitoring purpose and serving stakeholders’ interests. The findings also indicate that the Indonesian approach to XBRL regulation and implementation had distinct characteristics compared to XBRL implementation in other jurisdictions. Practical implications This study emphasises the necessity for robust regulatory support and strict enforcement to navigate the complexities and tensions arising from a multi-regulatory approach. Additionally, it stresses the importance of firms’ readiness and expertise in XBRL as more sophisticated implementation strategies are considered. Originality/value Using the analytical lens of theorisation and translation, the study provides a deeper understanding of how a globally diffused accounting technology was institutionalised and legitimised in a developing country. Specifically, this study explains why a conversion approach to XBRL implementation was favoured and how XBRL implementation and reporting were managed and coordinated between different Indonesian regulators.

Revitalizing Performance of Three Star Hotels in Machakos County, Kenya Through the Application of Turnaround Strategies

This study sought to assess the effect of turnaround strategies on performance of selected three-star hotels in Machakos County, Kenya. The specific objectives were to determine the impact of downsizing, divestiture, price bundling, and repositioning on the performance of three-star hotels in Machakos County, Kenya. The research was grounded on the balance scorecard theory, contingency theory, institutional theory, and resource-based view theory. The study adopted a descriptive research design. A total of 454 (Finance staff, HR staff, and Marketing staff, Guests) involved in operation of three-star hotels were targeted. A stratified random sampling technique was used to select a sample size of 135 respondents. Semi-structured questionnaires were utilized to gather primary data. A pilot study was done using 10 participants who were not involved in the final data gathering to check validity and reliability of study instrument. To explore the impact of the link between the independent and dependent variables, multiple regression analysis was performed. The study findings show that coefficient of correlation was 0.789, an indication that the study variables significantly influenced performance of three-star hotels. Coefficient of adjusted determination was 0.615 which translates to 61.5%. This indicates that variations in dependent variable was explained by the independent variables (downsizing strategy, divestiture strategy, price bundling and repositioning strategy). The findings also established that P-value was 0.001 which is less than 0.05 an indication that the study variables significantly influenced performance of three-star hotels. The study concludes that turnaround strategies significantly affect the performance of selected three-star hotels in Machakos County, Kenya. The hotel administrators should come up with reliable communication channels about the reasons behind the downsizing staff and offer support services for affected employees. The three-star hotels should conduct thorough due diligence before divesting any assets. This includes a comprehensive analysis of the financial implications, potential impact on market share, and considerations of the long-term strategic goals of the organization.

Guiding the way: a comprehensive examination of AI guidelines in global media

AbstractWith the increasing adoption of artificial intelligence (AI) technologies in the news industry, media organizations have begun publishing guidelines that aim to promote the responsible, ethical, and unbiased implementation of AI-based technologies. These guidelines are expected to serve journalists and media workers by establishing best practices and a framework that helps them navigate ever-evolving AI tools. Drawing on institutional theory and digital inequality concepts, this study analyzes 37 AI guidelines for media purposes in 17 countries. Our analysis reveals key thematic areas, such as transparency, accountability, fairness, privacy, and the preservation of journalistic values. Results highlight shared principles and best practices that emerge from these guidelines, including the importance of human oversight, explainability of AI systems, disclosure of automated content, and protection of user data. However, the geographical distribution of these guidelines, highlighting the dominance of Western nations, particularly North America and Europe, can further ongoing concerns about power asymmetries in AI adoption and consequently isomorphism outside these regions. Our results may serve as a resource for news organizations, policymakers, and stakeholders looking to navigate the complex AI development toward creating a more inclusive and equitable digital future for the media industry worldwide.

The impact of the digital technological revolution on the development of crisis management theory

Purpose: is to identify the main directions of changing the theory of crisis management of companies under the influence of digitalization based on the analysis of technological transformations in the economy and institutional prerequisites.Methods: to achieve the purpose of the study, methods of logical, institutional and statistical analysis of economic phenomena and financial and economic data of industrial and digital companies, economic comparative studies using the provisions of various theories are used. The theoretical basis of the research is the synthesis of the theory of technological revolutions by Perez C., the new institutional economic theory, the concept of scientific research programs by Lakatos I.Results: the formulated hypotheses of the study on the need to change the «protective shell» of the theory of crisis management under the influence of factors of the digital transformation of the institutional economy are proved. The changes are associated with the formation of new subjects – digital companies, the transformation of the nature of crises and anti-crisis tools in the context of the digital revolution. The institutional nature of business crises in the context of technological revolutions has been established, due to the discrepancy between the speed of development of the economic institutions and technologies.Conclusions and Relevance: the digital revolution is having a significant impact on business. Its adaptation to digital technological conditions requires the development of the new and improvement of existing institutions. These changes challenge the theory of management, which must adapt its basis to the new technological needs of the business. Сrisis management plays an important role in this: the rapid development of digital technologies is accompanied by the crisis factors, the nature of most of which is institutional in nature. However, to date, despite the obvious need, the directions of transformation of the theory of crisis management have not been determined at the scientific and theoretical level. According to the results of the study, the key artifacts of the digital economy have been identified that determine the directions of transformation of the theory of crisis management by transforming its «protective shell». The institutional nature of the prerequisites for such a transformation is proved. The results of the study determine the future directions of the development of the theory of crisis management.

National Food Policies and Food Security in Kenya's Arid and Semi-Arid Lands

Food insecurity remains a persistent challenge in Kenya's Arid and Semi-Arid Lands (ASALs) due to a combination of frequent climate shocks such as droughts, floods and livestock diseases. These extremes disrupt traditional ways of life and devastate crops and livestock, leaving communities with little to no food. This paper examined the effect of national food policies and strategies on food security in these fragile regions, specifically focusing on initiatives designed to address the recurring problem. The arguments of the decentralization and institutional capacity theories were used to guide the analysis. Methodologically, the study employed a descriptive survey research design to inform data collection and analysis. The research established that despite government interventions, food insecurity remains prevalent in ASAL regions. The causes of this insecurity are multifaceted, encompassing factors such as climate variability, restricted access to resources and socio-economic disparities. The paper recommends a review of national food policies targeting ASALs to align them with the drivers of food insecurity. The review should include community engagement and stakeholder collaboration to attain effective and sustainable solutions.

The logical structure of modular semantic theories of software systems

AbstractThis paper studies the structure of semantic theories over modular computational systems and applies the algebraic Theory of Institutions to provide a logical representation of such theories. A modular semantic theory is here defined by a cluster of semantic theories, each for a single program's module, and by a set of relations connecting models of different semantic theories. A semantic theory of a single module is provided in terms of the set of Σ‐models mapped from the category Th of Σ‐theories and generating a hierarchy of structures from an abstract model to a concrete model of data. The collection of abstract models representing different modules of a program is formalised as the category of institutions INS, where theory morphisms express refinements, integrations, and compositions between couples of modules. Finally, it is required that a morphism in INS at any level occurs iff the same morphism occurs at the lower level alongside the Th hierarchy.

“All roads lead to Rome?” Performance evaluation across different types of community land trusts based on a large-scale survey

ABSTRACT Community land trusts (CLTs) seek to keep homes and other urban spaces permanently affordable and community controlled. As their number across the United States has increased, different iterations of the CLT model seem to have proliferated in practice, stoking scholarly debate as to their varying outcomes and benefits. There has, however, been little attempt to empirically measure the relationship between this institutional diversity and outcomes. Applying institutional theory to a national CLT dataset, we identify five main organizational sub-types of CLT: traditional CLTs, start-up CLTs, government-housed CLTs, nonprofits with a CLT/shared equity (SE) program, and adapted CLTs. Statistical tests confirm a high degree of similarity in operational scope, organizational capacity, and performance outcomes across the most prominent sub-types. The limited statistical differences which can be identified are consistent with known CLT and urban institutional development processes. Further studies might seek to determine how consequential such limited differences may be.

The Action Against of TNI Who Involved in the Election Campaign Reviewed from Institutional and Authority Theory

The Action Against of TNI Who Involved in the Election Campaign Reviewed from Institutional and Authority Theory

Brand equity and financial performance: an institutional view

PurposeThe purpose of this study is to investigate the influence of brand equity on corporate financial performance across various institutional factors in China, encompassing macro (regional economic development and product market development), meso (industry uncertainty), and micro (CEO overseas experience) levels.Design/methodology/approachUsing archival data related to Chinese listed companies, this study employs standard error combined with fixed effect regression for model estimation to empirically evaluate the impact of brand equity on financial performance (Tobin’s q) and its boundary effects.FindingsThis study reveals that in China, the influence of brand equity on Tobin’s q isn’t significant. However, when considering institutional factors across various levels, its impact becomes significant. Specifically, the positive effect of brand equity on Tobin’s q in China is more pronounced in regions with higher economic or product market development, industries with high uncertainty, or when the CEO has overseas experience.Research limitations/implicationsThis study enriches the brand-related marketing literature in China and highlights the potential underperformance of brand equity within this context. Furthermore, this study advances the integration of resource-based view with institutional theory by combining brand equity with institutional factors at the macro-, meso-, and micro-level in China.Originality/valueThis study focuses on brand performance in China, the largest emerging market, emphasizing the importance of integrating brand equity with diverse institutional factors to amplify its beneficial influence on financial performance.

Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

PurposeEmerging economies are increasingly benefiting from Islamic finance principles. The distinctive features of this unconventional form of finance are starting to be considered even in developed economies. Islamic finance operates under prohibitions on interest, gambling, speculation and complex derivatives according to the dogma in the Quran, Sunnah, Ijma and Qiyas. International financial reporting standards (IFRS) allow companies to attract global capital due to overcoming international borders. However, Islamic finance cannot apply all accounting standards. Therefore, this study aims to explore the implementation of international accounting standards in the Islamic finance context to present applications and future research fields.Design/methodology/approachUsing a bibliometric and coding analysis, the study analyses 226 peer-reviewed journal papers extracted from the Scopus database. Using the bibliometrix package, the authors explored the literature’s intellectual, conceptual and social structures, categorising the findings into thematic clusters relevant to traditional and Islamic finance paradigms.FindingsThe results reveal new and interesting elements using the lens of the conceptual, intellectual and social structure. Additionally, the authors find out three main thematic clusters: (1) IFRS and Islamic finance: general principles; (2) IFRS and Zakat; (3) IFRS and Murabaha compatibility; (4) IFRS and Takaful; and (5) IFRS and auditing organisation for Islamic financial institution: governance strategies.Originality/valueThe contribution is original as the authors discover institutional theory perspectives and a diatribe between positivist and ontological approaches.

Taking Science Fiction seriously: Unveiling its relationship with employee’s Innovative Work Behavior

While existing literature acknowledges the role of science fiction in foreseeing technological advancements, a notable gap persists in understanding the underlying factors that drive or hinder individuals from the intention to generate and promote ideas gathered through science fiction. Our research model aims to shed novel light on what factors influence employees’ propensity to generate and promote ideas inspired by science fiction, through the lenses of institutional theory. Purposefully, we frame science fiction methodologies inside the Innovative Work Behavior discourse, as science fiction could be a fruitful tool to generate and promote ideas, and we investigate the interplay of rational and institutional influences on such behaviors. The findings provide valuable insights that can be leveraged to design and implement effective methodologies within organizational settings. Our study, based on data from 480 employees, employs Structural Equation Modeling to reveal the pivotal role of normative influence in idea generation, while idea promotion exhibits a robust association with cultural-cognitive influence, pinpointing the dual phase of science fiction methodologies.

The institutional nature of political power according to new directions in institutional theory

Institutional theory is one of the oldest theories used to analyze political issues and phenomena. In the classical period, this theory emphasized the constitutional and legal aspects, while paying more attention to the official institutions of the state, especially the powers (legislative, executive and judicial). In the 1950s, due to the rise and dominance of the behavioral school, this theory was ignored by researchers in the field. However, the beginning of a new phase of institutional theory in the 1970s; the emergence of all three directions (historical, social, and rational choice) was also a strong factor in attracting researchers to use institutional theory in their studies. At the same time, political power has always been of interest and debate in political analysis, although the concept has often been portrayed in the guise of an individual and a ruling group. But in fact, one of the characteristics of political power is institutionalization. For this purpose, this paper describes political power and new directions of institutional theory. On the other hand, it analyzes the nature of institutionalization and how the process of institutionalizing political power is carried out within the framework of new directions of institutional theory.