Open AccessDevelopment of Institutional Theory and its Application to MNE Context: A Review of Literature
Author(s) -
Adithi
Publication year - 2018
Publication title -
focus : journal of international business
Language(s) - English
Resource type - Journals
eISSN - 2395-258X
pISSN - 2347-4459
DOI - 10.17492/focus.v4i02.11693
Subject(s) - institutionalisation , institutional theory , multinational corporation , context (archaeology) , institution , organizational theory , frame (networking) , social institution , political science , institutional change , sociology , economic system , positive economics , social science , public administration , economics , management , computer science , paleontology , telecommunications , law , biology
Institutional theory is an important framework for various research fields. It gives a general frame of reference as to what constitutes an institution and what are the factors that affect it. However, the theory requires more than a general frame of reference because in today’s world the characteristics of the organizations are changing with the change in factors related as well as unrelated to the processes of organization. In this background, the paper attempts to provide a brief historical overview of institutions, institutionalisation, differences among institutions and institutional environment to unveil the development of institutional theory. It also looks at the application of institutional theory in the context of multinational enterprises. The findings indicate that emphasis of institutional theory has shifted from generalized system of social belief to appropriate means to become legitimate with the pressures.