The Use of Institutional Theory on Business Studies and in Entrepreneurship (Essay Sample)

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Literature Review on Institutional Theory's Use in Business Studies
Institutional theory is a theoretical phenomenon that focuses on the deeper aspects of the social world. The term institution has various definitions, but this review majors on one definition; an established rule of behavior acceptable as culture or norm. Institutions are basic in giving an explanation of the social framework because they engrave to the social orders and government that all social researchers cannot end without tackling them. The institutional theory, therefore, bases on social theory. This review focuses on the use of institutional theory on business studies especially in entrepreneurship.
Institutional theory is the framework used for analyzing social organizational in the public domain. It views the social sect suggestively made up of the institution as the basis of these organizations. They have conditions that control the actions, and they have rules and a way of practice. They are not everywhere and not for everyone. Instead, they are in some particular context in which they control the activities in that context. Simultaneously, these contexts facilitate actions by ensuring that the world is understood and meaningful to the society. One of the pioneer investigations on institutional theory was done by Meyer and Rowan in the year 1977. They began by investing the consequences of institutional context on the structures of organizations. They did research on how a social fact, such as language and religion could become an institution. With time, more authors wrote more on institutional theory. They came up with more questions that were aimed at giving more facts than the existing ones on institutional theory. Examples of the questions were; how institutions change, die, and the ways in which they relate to each other.