Institutional theory

Health Management Glossary

Workforce and Leadership

Definition. Institutional theory explains organisational structures and practices as responses to social norms, rules and expectations that confer legitimacy, not only as efficient solutions.

Explanation

A special research forum summarised how institutional theory moved from explaining stability to explaining institutional change (Dacin et al., 2002). DiMaggio and Powell’s account of isomorphism is a cornerstone (DiMaggio & Powell, 1983).

In health management it helps explain why hospitals adopt accreditation, quality programmes or AI because peers and regulators expect it.

Related concepts

Institutional isomorphism Accreditation Dynamic capabilities Theory building

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References

Dacin, M. T., Goodstein, J., & Scott, W. R. (2002). Institutional theory and institutional change: Introduction to the special research forum. The Academy of Management Journal, 45 (1), 45-56

DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101

Cite this entry: Kurutkan, M. N. (2026). Institutional theory. In The Health Topics glossary. https://healthtopic.org/glossary/institutional-theory/

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