Neo-institutional Theory Research Articles

Are we neglecting the influence of national culture (individualism–collectivism index) in mitigating the instances of data breach?

Purpose Based on neo-institutional theory, this study evaluates factors that affect instances of data breaches in a hospital. The authors study the effect of adopting the health information exchange (HIE) initiative on a hospital’s data breach threats. This study integrates formal and information institutional factors to identify the antecedents that influence data breaches when adopting HIE. This study uses a hospital’s entrepreneurial orientation (EO) as a formal institutional factor and national culture (collectivism–individualism) as an informal institutional factor. Design/methodology/approach Using a Statistical Analysis System, the authors analyze US hospital observations over five years. The data was collected from the Health Information and Management Systems Society (HIMSS) database, the Health and Human Services website and the Vandello and Cohen (1999) collectivism index. Findings This study finds that when hospitals adopt HIEs, data breaches increase. This study also finds that both EO (formal institutional factor) and the individualism–collectivism index (informal institutional factor) significantly moderate these instances. Research limitations/implications HIMSS has not updated its data set to reflect recent hospital data, so this study’s data set lacks recent data on US hospitals. Originality/value This study is one of the few studies to address the impact of cultural variation in US hospitals and how it interacts with entrepreneurial activity to lower data breach threats when adopting new data exchange standards.

Factors Favoring the Adoption of Green Finance by Financial Institutions In Dakar: An Exploratory Study

As with any organization, financial institutions, particularly in Dakar, play a crucial role in low-income and emerging economies by mobilizing capital and investing in climate change mitigation. Drawing on neo-institutional theory, this exploratory study aims to understand and identify the factors that may influence the adoption of green finance by banks in Dakar. To achieve this, interviews were conducted with five (5) bank CEOs and three (3) solar energy stakeholders (bank clients), and the data were analyzed using thematic categorical content analysis. The findings, based on the interviewees’ responses, reveal that top management support, proactive institutional strategies, capacity building, incentive policies, market share development, allocation of funds to green projects, and the digitization of banking services are likely to influence the adoption of green finance by banks in Dakar. Furthermore, the direct involvement of monetary and regulatory authorities, through the development of specific regulations that encourage financial institutions to adopt green finance, is essential.

Neo-Institutional Analyses of Criminal Legal Organizations and Policies

Since emerging in the late 1970s and early 1980s, neo-institutional theory has been a popular framework for understanding law, legal institutions, and policies on the books and in action. Neo-institutional theory has been particularly useful for explaining diverse criminal justice phenomena, from changes in penal law and policy statements to on-the-ground practices across police departments, courts, carceral facilities, and community corrections. This review describes how scholars of the criminal legal system have used neo-institutional theory and where there is room for further utilization. Additionally, it discusses how and why neo-institutional theory is particularly useful for sociolegal scholars, and not only those studying criminal legal organizations and policies.

The state of decentralization of the healthcare system and nutrition programs in the Lao People’s Democratic Republic: an organizational study

BackgroundThe Lao People’s Democratic Republic (Lao PDR), a lower-middle income country, has a higher malnutrition rate than other Southeast Asian countries. The decentralization of healthcare is a determinant of the effectiveness of programs to reduce malnutrition, but no study has focused on this factor in this country. This organizational study explores the state of decentralization of the healthcare system in Lao PDR that underlies the nutrition programs in the country.MethodsA qualitative study, which is based on a neo-institutional theory conceptual framework, explored factors related to dominant structure (laws, regulations, resources) and interpretative schemes (dominant ideas and beliefs) that characterize the nutrition services provided in the Lao healthcare system. Twenty-four semistructured interviews were performed with representatives of healthcare institutions involved in nutrition programs at different government levels, external donors and civil society organizations. The interviews were completed with relevant documents. The analysis focused on the convergence of interpretative schemes of the organizations concerned and the coherence between the structure underpinning the nutrition programs and the interpretative schemes.ResultsServices deployed to reduce malnutrition in the Lao PDR remain largely centralized, despite factors specific to the country that led it to promote decentralization of its services. The convergence of interpretive schemes and the coherence between the observed structure and the interpretative schemes of actors at all governance levels ensure the stability of this state of decentralization, which has persisted for almost 50 years.ConclusionNutrition programs in the Laos PDR are largely under the responsibility of the central government. The transformations in the healthcare system, notably with the use of new information technologies and the fact that the provinces are populated by a growing number of professionals trained in nutrition in addition to factors that push the system to be decentralized, such as ethnic diversity, the increasing availability of human resources in provinces, and the use of communication technologies, are not strong enough to change the balance of power between governance levels. The deconcentration that characterizes decentralization is therefore likely to continue for the foreseeable future.

Implementation of sustainability activities in food retail chains

PurposeThis study aims to examine the implementation of sustainability activities in food retail chains operating in the Czech market and discusses the specific activities that influence their implementation.Design/methodology/approachUsing the neo-institutional theory as a framework, the research employs qualitative content analysis with an explanatory and inductive approach based on the stratification of data collected by multiple-round, personal, face-to-face interviews by the researchers with managers of the Czech headquarters of multinational food retail chains.FindingsThere is lively development in activities in the fields of the environment and social welfare, while the activities in governance and economic resilience are more stabilised. To remain ahead of the competition, retail chains aim to implement and communicate as many activities as possible where at least some links to sustainability can be found. A lack of benchmarks and clear definitions reduce the ability to determine their degree of engagement. Thus, market actors are inundated with sustainability claims leading to inflation of the concept, while significant achievements are drowned.Originality/valueThis paper, based on empirical research, contributes to the current literature by showing inflation of the sustainability concept as one of the key effects of retail-chain competition. In this context, it also strengthens previous findings on the profitability motive behind sustainability activities. Moreover, we have developed our own stratification method, enabling differentiation between activities getting the most attention due to their progressive phase and those where development is in the background.

Antecedents and performance consequences of high-potential programs: The role of firms’ cultural environment

Drawing on neo-institutional and contingency theory, we argue that firms are more likely to use and benefit from a high-potential program when it is accepted and legitimate in and fits with the cultural environment. Drawing on a sample of 1,808 firms from 23 countries, our results provide evidence that the use of high-potential programs is subject to cross-cultural variations, but the pattern is largely inconsistent with predictions derived from neo-institutional theory. We find a positive relationship between the use of high-potential programs and firm performance, but this relationship is not contingent on a firm's cultural environment.

On university competition

ABSTRACT Universities are specific local entities, and as such are in competition with one another for resources and prestige. The general tone of the literature—which sees universities mainly as specific organizations—is quite negative, with competition leading to destructive market and political forces. The tone is surprising, given the extraordinary worldwide university expansion over the last seven or eight decades. This inconsistency is resolved with the perspective of neo-institutional theory: the university is a stunningly successful global institution from which specific cases derive their accredited standing and legitimacy. The enlarged and grand institutional canopy has supported thousands of expanded and rationalized organizations, which then suffer from competition. But in their struggles, the contending organizations produce further elaborations of the domain of the overall institution. The university grows, though the instances it flowers may sometimes suffer.

Multinational subsidiary's search for legitimacy: the isomorphism dilemma

The development of companies is limited by institutions that create common paths for all companies, such as the need for mimetic isomorphism. However, when it comes to multinational companies (MNCs), this reality is more complex. These companies face pressure at the global level (from the headquarters and other subsidiaries). Our proposal aims to elucidate how MNCs use the principles of organizational fields in their strategy for entering new markets. We investigate Amazon's entry strategy into the Brazilian market, assessing its level of isomorphism, decoupling, and legitimation. A single case study was conducted on Amazon's entry into Brazil to analyze the consistency of Kostova, Roth & Dacin's (2008) propositions concerning the neoinstitutional theory of organizational fields. Our analysis identified five types of strategies for legitimation in the organizational field: legitimation, synergy, endorsement, innovation, and adaptation, all observed in practice in the case.

A layered governance approach to regulating Big Tech

After decades of unregulated growth, the world's largest technology companies have now attracted the attention of regulators in both Europe and the US. Regulating “Big Tech”, however, has proven to be challenging, partly because of their size, but also because of their strategic importance in maintaining a competitive advantage between western nation-states and rising economies in Asia. The paradox is that regulators hope to create a regulatory regime that constrains the oligopoly power of Big Tech without quashing their capacity to innovate. Traditional regulatory theories are not equipped to address this paradox. Drawing from neo-institutional theory, we propose a “layered governance” model of regulation to address this problem. Layered governance is an emerging regulatory regime that distributes power across multiple government and non-government organizations while providing the regulated organizations with a degree of flexibility and choice by the organizations themselves as to the mode of regulation. We elaborate how layered governance is consistent with current understandings of regulation as derived from neo-institutional theory, elaborate how it differs from traditional approaches to regulation, and discuss how a layered governance approach to regulating Big Tech may evolve in the future.

Unravelling the influence of formal and informal institutions on the duration of public concessions

The growing prominence of public–private partnerships featuring concessions has become a focal point in the management realm. Concession agreements, often spanning numerous years, imbue projects with continuity and stability. Through the theory of neo-institutionalism, we analyse the influence of formal and informal institutions on the duration of these projects across diverse countries, showing the pivotal role played by the institutional environment and consensus mechanisms in ensuring the success of such collaborative endeavours. The findings furnish valuable insights for practitioners and policymakers by facilitating the identification of optimal conditions to establish enduring and highly effective concession agreements.

Institutional isomorphism and quality of gender disclosure. The Italian case

Purpose: Non-financial reporting (NFR), including gender disclosure (GD), is a tool companies use for institutional legitimisation and represents an organisational field that evolves due to regulatory and stakeholder pressure. This research uses the theoretical approach of institutional isomorphism in the context of neo-institutional theory to investigate GD's degree of maturity (quality and homogenei-ty) in a homogeneous institutional context. Design/methodology/approach: This paper adopts a qualitative research meth-odology based on a content analysis of the GD resulting from the NFRs of listed Italian companies in 2016 and 2021. Findings: The results show the degree of institutionalisation achieved through GD after introducing the mandatory NFR. The analysis reveals companies' conver-gence process in terms of isomorphic behaviour and changes in the quality of GD. The findings unfold the institutional pressure that has the most significant impact on the quality of GD, fostering a homogenisation of disclosure at the company level. Originality/value: This is the first study to assess isomorphism and its effects on the quality of GD. This research enriches the literature on institutional theory by analysing the impact of different isomorphic forces on GD. Practical implications: This paper assists policymakers, supervisors, and investors in evaluating the quality of GD and identifying the issues leading to the most critical matters and inefficient or non-transparent behaviours. The findings improve regulatory quality, information control, and assessment of the appropriateness and reliability of the NFR. The implications guide regulators in identifying stand-ards and tools that enhance strategies regarding gender diversity and performance disclosure.

Eco-Design in Products and Services of SMEs: Motivation and Results

This research study examines the direct influence of customer preference and the potential moderating influence of laws and green purchasing on eco-design of products/services in small and medium-sized enterprises (SMEs). Also studied is the relationship between these variables and environmental and economic performance in SMEs. The analysis uses theoretical underpinning of stakeholder and neo-institutional theories, and survey data collected from a sample of SMEs. Regression path analysis is applied, bootstrapped with .95 CI (Bias Corrected and Accelerated) and 2,000 samples on all regressions. Significant relationships were found between customer preference and eco-design, moderated by impact of laws, and between eco-design and environmental and economic performance. Green purchasing was found to have no moderating effect on adoption of eco-design. Managerial implications are indicated and discussed.

Digital leadership, business model innovation and organizational change: role of leader in steering digital transformation

PurposeScholars and practitioners acknowledge that digital leadership can help organizations gain a competitive advantage. This article focuses on the characteristics, styles and skills needed for effective digital leadership. It looks at the role of digital leaders in innovating business models and introducing organizational change required for a successful digital transformation.Design/methodology/approachThis paper is based on a comprehensive literature review of digital transformation, digital leadership, business model innovation, and organizational culture. It draws on institutional theory (INT) the neo-institutional theory (NIT). It draws from Science Direct, Web of Science and Google Scholar publications. A proposition and a conceptual framework are developed based on evaluating and synthesizing the literature.FindingsWe find that specific leader characteristics (agility, participative, innovativeness and openness), styles (democratic and transformational) and skills (cognitive, social, technological and digital) enable successful business model innovation and organizational change, all of which allow successful digital transformation of firms.Originality/valueThe literature on digital transformation has not been well integrated with the leadership literature. This is particularly true in terms of the role digital leaders play in the successful digital transformation of firms. The conceptual framework and a way forward proposed in this paper introduce future research directions on the topic.

Information security policy effectiveness: a managerial perspective of the financial industry in Vietnam

Purpose Information security (InfoSec) policy violations are of great concern to all organisations worldwide, especially in the financial industry. Although the importance of InfoSec policy has been highlighted for many decades, InfoSec breaches still occur due to a low level of employee compliance and a lack of engagement and competence in high-level management. However, previous studies have primarily investigated the behavioural aspects of InfoSec policy compliance at the individual level rather than the managerial factors involved in constructing InfoSec policy and developing its effectiveness. Thus, drawing on neo-institutional theory and a transformational leadership framework, this research investigated the influence of external mechanisms and transformational leadership on InfoSec policy effectiveness. Design/methodology/approach The research model was implemented using field survey data from professional managers in the financial sector. Findings The results reported that neo-institutional mechanisms and transformational leadership shape InfoSec policy effectiveness in an organisation. Originality/value This study broadens current InfoSec policy research from an individual level to a managerial perspective and enhances the existing literature on neo-institutional and transformational leadership in the context of InfoSec. It highlights the need to evaluate InfoSec policy based on external factors and to support transformational leadership styles that promote InfoSec policy enforcement and effectiveness.

Pengaruh Logika Institusi, Indikator Kinerja Utama, dan Partisipasi Anggaran terhadap Kinerja Institusional

The Merdeka Learning Campus Merdeka Program is implemented in tertiary institutions by the government in order to build competent and quality human resources. This program is realized through performance indicators set by the government to improve their institutional performance. The purpose of this study was to determine the effect of institutional logic, key performance indicators, and sentiments on institutional performance. Neo-Institutional Theory in the study of institution and organization underlies this study by explaining theoritically how institusion are formed, changed, and maintained in society. The method used is the Structural Equation Modeling-Partial Least Squares approach. Statistical testing in this study used the smart pls 3.0 application. Respondents who were involved in this study amounted to 237 employees who were employees of Sriwijaya University. The sampling method of this study used purposive sampling. Data collection techniques using a questionnaire. Data analysis was performed using Structural Equation Modeling-Partial Least Squares. The results showed that partially Institutional Logic had an effect on Institutional Performance, Key Performance Indicators had an effect on Institutional Performance, Budget Participation had an effect on Institutional Performance.

INSTITUTIONAL ESSENCE OF THE SYSTEM OF AGRICULTURAL ADVISORY IN UKRAINE

Purpose. The purpose of the article is the theoretical substantiation of the essence of modern agricultural advisory as a social and economic institution. Methodology of research. The theoretical and methodological basis of the research is an institutional approach using the methods of the theory of transaction costs and neo-institutional theory. The other methods were also used in the research process, in particular: statistical method – to assess the impact of informal institutions on the public perception of the agricultural advisory system; abstract and logical – for understanding the regularities of development of advisory; the method of institutional modelling – to determine the institutional components of the functioning of the agricultural advisory system. Findings. The theoretically grounded essence of modern agricultural advisory as a socio-economic institution, which provided an opportunity to determine its institutional structure, to deepen the types of functions performed by it, to expand the components that have an impact on the institutionalization of organizational formations of advisory. Originality. An institutional approach was used to substantiate the essence of modern agricultural advisory as a socio-economic institution, which creates the basis for a wider external perception of advisory. Practical value. The obtained research results are aimed at a wider external perception of the agricultural advisory system and create the basis for further in-depth improvement of scientific approaches and mechanisms in the development of concepts, rules, standards, functions, methods, management solutions for the implementation of professional agricultural advisory activities. Key words: institutional theory, institutionalism, institutions, environment, agricultural advisory system, advisory subjects, management system.

Science at risk? Considering the importance of academic freedom for STEM research production across 17 OECD countries.

Since 2011, a declining trend in academic freedom globally has paralleled a rising tide of neo-nationalism. We use fixed effects models to examine data from the Varieties of Democracy (V-DEM) academic freedom index and bibliometric data for 17 OECD countries across nearly three decades (1981-2007) that precede the recent decline in academic freedom. We find substantial, statistically significant, positive relationships between cross-nationally comparable and longitudinal measures of academic freedom and volume of STEM publications. Additionally, academic freedom positively influenced the quality of STEM publications as measured by journal rankings. Our findings were relatively consistent across various measures of academic freedom and model specifications. We discuss implications for safeguarding academic freedom, applying neo-institutional theory, and identifying directions for future research.

An exploratory study of the concept of social procurement in the construction industry in Botswana: contractor's perspective

PurposeGovernments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to assess the understanding of SP among contractors and identify its drivers to optimize the value associated with public projects.Design/methodology/approachA total of 15 major contractors were interviewed to obtain their views on SP, appreciate their current practices and identify the main drivers of SP in projects. A semistructured interview was used to gather relevant data. Neo-institutional theory is the lens of the study used to provide the focus of the research. The collected data were analyzed using the thematic data analysis technique.FindingsThe study found that SP is understood as corporate social responsibility and is not handled in a structured manner guided by policies or clearly defined procedures. Additionally, research has shown that compliance requirements, rather than value and goodwill, are the main inspiration for SP practices.Research limitations/implicationsThe study’s limitation is the fact that it was conducted in the context of Botswana and only used the interview technique as the solo data collection method. The other limitation is the lack of empirical literature on SP concerning the lack of SP policy in Botswana.Originality/valueThis study raises awareness of the concept of SP among contractors in Botswana and eases its implementation within the industry.

Reviewing executive remuneration decision-making and reporting: implications for theory and practice

PurposeThe purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.Design/methodology/approachThis qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.FindingsFurther regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.Practical implicationsReviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.Originality/valueThe authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.

‘Give the Grant Money to the Youth’: From Youth Departure to Belonging in the Ethnic Church

Abstract This paper uses sociological theories of religious change to explain findings from action research on intergenerational relations at two ethnic churches in the U.S. At the outset of our study, immigrant adults felt threatened that younger congregants preferred non-ethnic churches. When these churches used research funds to support youth development and outreach programs, they experienced intergenerational congregational belonging. We ask, do existing sociological theories sufficiently explain how these ethnic churches responded to the ecclesial problem of youth departure? Can we use action research to advance theories of how youth practice belonging within ethnic churches? We show how action research produced anomalous cases of intergenerational partnership that begs the integration of market-based and neo-institutional theories of religious change. We argue that future action research targeting youth ministries and civic activism in ethnic churches can explain how American religion is changing through the immigrant youth demographic.