SWG 12: Institutions, Innovation, Impact: How Institutional Theory Matters
, University of Alberta, Canada
, Aalto University, Finland
, UNSW Business School, Sydney, Australia
, University of Rhode Island, USA
Although the question of how institutional theory matters is, in some respects, an old one, we believe the time is ripe to revisit it. Institutions both impact and are impacted by the continuous transformation of technology and other material arrangements, as well as changes in social practices – the habitual ways of doing and engaging with various objects. New forms of organizing, both in business (Uber, MTurk, AirBnB) and civil society (Facebook, Twitter), create novel opportunities and practices, potentially redefining traditional governance structures. Institutions exist because individuals enact and recreate them in their daily activities. Thus, they are inherently dynamic, though not easily malleable. Institutionalized norms, practices, and rules frame actors’ decisions and interactions, positioning them at the root of responses to grand challenges – financial upheaval, climate change, inequality, and refugee issues, to name just a few.