Institutional Theory and Organizational Culture

Chapter 7 explains that the organization has to function in an organizational field that features an institutionalized social structure. An organization has a choice to conform to this institutionalized social structure by way of isomorphism. Or it can try to change the institutionalized social structure by way of institutional entrepreneurship. This kind of change is presented as fundamental strategic change. This also applies to the organization itself as the organizational culture is introduced as the organization’s social structure. A strategist can be either a conformist, functioning within the demands of the prevailing social structure, or a challenger, going against the prevailing social structure. Strategic drift is introduced as part of this approach.