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Institutional Entrepreneurship
Institutional entrepreneurship refers to the process through which actors in an interorganizational field create new institutions, change existing ones, or tear down old ones. Actors to whom responsibility for new or altered institutional arrangements is attributed are called institutional entrepreneurs. In some instances, these are individuals; in others, they are collective actors such as organizations, coalitions, or social movements. Although the term institutional entrepreneur(ship) can be traced to earlier usages, Paul DiMaggio's elaboration of the concept in 1988 did much to highlight its importance for institutional theories of organization. By describing how actors are constrained by and conform to the expectations of their institutional environments—actors unreflectively adopt taken-for-granted practices and, in so doing, individually acquire legitimacy and collectively reproduce the institutional order—institutional theorists have had success explaining stability in fields but have been challenged by novel action and change. Institutional entrepreneurship is therefore an important concept; it helps to explain nonisomorphic change in fields and, in so doing, brings to the fore two concepts addressed problematically in much recent institutional theorizing—agency and interests. It is thus a promising concept for bridging what have come to be called, since DiMaggio and Powell's essay of 1991, the old and new institutionalisms in organizational analysis, and it serves as a key conceptual locus of efforts to advance the agency-structure debate.
Conceptual Overview
The Paradox of Embedded Agency
The theoretical puzzle is this: If actors are embedded in an institutional field and thus subject to the regulative, normative, and cognitive processes, which, like pillars, support institutions therein, how is it that they are motivated and able to envision new practices, then can subsequently get others to adopt them? Actors who are truly embedded are not supposed to desire, imagine, or realize alternative ways of doing things because institutionalized arrangements and practices structure cognitions, define interests, and, in the limit, produce actors' identities. Even if conceiving of alternatives becomes possible, those actors who are disadvantaged by or peripheral in a field and thus motivated to change institutions typically lack the power to do so. Several solutions to this puzzle have been proposed, relating to the sources of institutional entrepreneurs' (1) motivations, (2) ideas for change, and (3) ability to realize new institutional arrangements.
Motivations for Change
Motivations for changing institutional environments vary depending on whether a field is emerging, mature, or in crisis. In emerging fields, institutional entrepreneurs do not have to escape the so-called iron cages of existing institutions before building new ones. In these contexts—where actors are only beginning to recognize themselves as belonging to a common enterprise, relationships are fluid, meanings are heterogeneous, understandings are not widely shared, and multiple possible scripts for action exist—actors are motivated to stabilize relationships, meanings, and practices to reduce uncertainty for themselves and to facilitate development of the field in ways congruent with the realization of constructed interests that predate or are emerging with the field. Different actors will, however, prefer different relationships, meanings, and practices to become institutionalized.
In mature fields, motivations for change vary with actors' positions. Peripheral actors who are disadvantaged by existing institutional arrangements have a greater incentive to break with current practices, while more powerful central actors have less. With more to gain and less at stake, peripheral actors are more willing to experiment with alternative practices, as demonstrated in a 1991 study of U.S. radio broadcasting by Huseyin Leblebici, Gerald Salancik, Anne Copay, and Tom King. Historically, innovative departures from transaction conventions originated with peripheral players, and only once their merits were demonstrated were they adopted by central players and institutionalized as new conventions.
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