[1] Different components of institutional theory explain how these elements are created, diffused, adopted, and adapted over space and time; and how they fall into decline and disuse.
"[2] Researchers building on this perspective emphasize that a key insight of institutional theory is ethics: rather than necessarily optimizing their decisions, practices, and structures, organizations look to their peers for cues to appropriate behavior.
Instead, it seeks cognitive and cultural explanations of social and organizational phenomena by considering the properties of supra-individual units of analysis that cannot be reduced to aggregations or direct consequences of individuals’ attributes or motives.
Some of those pressures in host and home institutional environments are testified to exert fundamental influences on competitive strategy (Martinsons, 1993; Porter, 1990) and human resource management (HRM) practices (Rosenzweig and Singh, 1991;[10] Zaheer, 1995; cf.
Rodner et al. (2020) mobilize Lefebvre to show how institutional work can be spatial by nature, in the context of the disruption of the cultural sector in Venezuela under Chavez.
Social, economic, and political factors constitute an institutional structure of a particular environment which provides firms with advantages for engaging in specific types of activities there.