Institutional theory
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/