ABSTRACT
Institutional theory is concerned with the social context within which organizations operate and as such is seeking to understand social structures which have attained a high degree of resilience. A main premise of institutional theory is that the institutional environment and the resulting institutional pressures have a profound influence on organizational behaviour, often more substantial than market pressures. Organizations are 'considered legitimate when their organizational practices are perceived to satisfy the social expectations of their environment'. Institutional pressures have a profound influence on organizational behaviour. The cause of institutional pressures, or 'rationale, set of expectations, or intended objectives that underlie external pressures for conformity', can be defined in terms of legitimacy and efficiency. Institutional pressures can stem from a variety of sources, including for example, from the state, professional organizations, mass media, social movement organizations, and society at large.
