The institutional philosophy: ‘changing conformity’

Aaron C.T. Smith, James Skinner and Daniel Read

Chapter 6 in Philosophies of Organizational Change, 2026, pp 132-152 from Edward Elgar Publishing

Abstract: Chapter 6 introduces the institutional philosophy, which seeks to explain how external pressures influence organizational structures and practices and how an organization's ability to adapt determines its prosperity. Through an exploration of key institutional debates, the chapter illuminates the ways in which institutions evolve, adapt and respond to various social, political and environmental pressures in their struggle for survival, and a progressive move to a social judgements approach. The chapter also highlights several varieties of institutionalism, including ‘new’ institutionalism as well as issues of identity, power and culture. The chapter then reviews institutional entrepreneurship as a force for innovation and change through disruptions to institutional norms. It notes that the institutional philosophy downplays internal change and the power change leaders hold over their own fates. Organizational change from an institutional perspective is therefore about sensitivity to a forceful institutional context. The chapter also explores how legitimacy is increasingly shaped by stakeholder expectations around environmental, social and governance and equity, diversity and inclusion perspectives, and how digital transparency accelerates institutional responses. Institutional complexity, once seen as a constraint, is now reframed as a potential source of innovation when organizations learn to navigate competing logics.

Keywords: Institutional; Structure; New Institutionalism; Institutional Entrepreneurship; Legitimacy; Complexity; ESG; EDI (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035372164
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