INSTITUTIONS AND ORGANIZATIONS FOURTH EDITION For Joy—who continues to construct and tend institutions of value to many of us INSTITUTIONS AND ORGANIZATIONS Ideas, Interests, and Identities FOURTH EDITION W. Richard Scott Stanford University FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail:
[email protected] SAGE Publications Ltd. Copyright 2014 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Printed in the United States of America. Library of Congress Cataloging-in-Publication Data Mathura Road, New Delhi 110 044 India Scott, W. Richard. SAGE Publications Asia-Pacific Pte. Ltd. Institutions and organizations: ideas, interests and identities / W. Richard Scott, Stanford University.—[Fourth edition]. 3 Church Street #10-04 Samsung Hub Singapore 049483 pages cm Includes bibliographical references and index. ISBN 978-1-4522-4222-4 (pbk.) 1. Organizational sociology. 2. Social institutions. I. Title. HM786.S3845 2013 302.3’5—dc23 2013006136 This book is printed on acid-free paper. Acquisitions Editor: Patricia Quinlin Editorial Assistant: Katie Guarino Production Editor: David C. Felts Copy Editor: Sarah J. Duffy Typesetter: C&M Digitals (P) Ltd. Proofreader: Jeff Bryant Indexer: Virgil Diodato Cover Designer: Candice Harman Marketing Manager: Liz Thornton 13 14 15 16 17 10 9 8 7 6 5 4 3 2 1 Contents Preface to the Fourth Edition vii Introduction xi 1. Early Institutionalists Early Institutional Theory in Economics Early Institutional Theory in Political Science Early Institutional Theory in Sociology 1 2 6 10 2. Institutional Theory Meets Organization Studies Institutions and Organizations: Early Approaches Foundations of Neoinstitutional Theory 21 22 30 3. Crafting an Analytic Framework I: Three Pillars of Institutions Defining Institutions The Three Pillars of Institutions The Three Pillars and Legitimacy Basic Assumptions Associated With the Three Pillars 55 56 59 71 74 4. Crafting an Analytic Framework II: Logics, Agency, Carriers, and Levels Institutional Logics and Organizations Agency and Institutions Varying Carriers Varying Levels of Analysis 87 88 92 95 104 5. Institutional Construction Creating Institutions Selected Studies of Institutional Construction 113 114 128 6. Institutionalization Three Conceptions of Institutionalization: Underlying Mechanisms Maintaining and Diffusing Institutions 143 144 151 Deinstitutionalization Processes Carriers and Institutional Mechanisms 166 171 7. Institutional Processes and Organizations Organizations and Institutions: Three Views Legitimacy, Isomorphism, and Coupling Institutional Context and Organizational Structure Interactive Processes Strategic Responses Sources of Divergence 181 182 183 193 200 210 216 8. Institutional Processes and Organization Fields Conceptualizing Organization Fields Key Components of Organization Fields Field Structuration Processes A Revised Agenda and Framework 219 220 225 235 256 9. An Overview, an Observation, a Caution, and a Sermon Distinctive Features The Maturation of Institutional Theory and Rese