ABSTRACT
Institutional theory urges us to consider the regular interaction patterns on which an organization relies to function and exist. The concepts of institution and institutionalization are key terms in sociology. Some argue that this is what sociology is about: the explanation of social order and social organization. The process logic for isomorphism sees the environmental survival process as taking place in the organizational field: this community of regular interactions that constitute a recognized area of institutional life in the aggregate. Many innovations and the rise and fall of markets and industries as a whole are found to be the consequence of institutional entrepreneurship. Looking at it from the perspective of isomorphism and the passive stance with regard to the institutional pressures an organization has to deal with, institutional theory covers the three ingredients of strategic management – strategy, environment, and organization – in a very specific manner.
