New institutionalist theory

New institutionalist theory started as critique toward behaviouralism and rational choice theory.
The critique was about the two approaches’ lack of interest and focus on institutions. New
institutionalism explains institutions as an interplay between individuals and institutions and how
the two impact each other. Which explains that organisations have formal structures but also
informalities of political life that actors repeatedly act upon, which in interaction with each other
creates changes within institutions (Lowndes 2018:54-55). It can be argued that new
institutionalism has an anti-foundationalist position in ontology meaning that the world is
socially constructed by humans (Marsh, Ercan &Furlong 2018:178;183), which further is
explained as institutions being created by people because new institutionalism focuses on the
interaction between individuals and institutions. The epistemological position of new
institutionalism is interpretivism which means that we only have knowledge of what exists (ibid),
which leads to our knowledge of institutions being based on their existence. New institutionalism
can be described as explanans, because it’s explaining, institutions, and institutions are
explanandum, the thing being explained (Godfrey-Smith 2003:191).

New institutionalism branches out in three different alignments; historical, rational choice and
sociological, which have different ideas (Hall &Taylor 1996:936). The orientation of sociological
institutionalism seeks to distinguish differences of formality and informality of institutions by
discussing the formality of rules and agreements in organisations but also their cultural norms
and morals. Sociological institutionalism focuses on informal factors claiming that organisations
are not only bureaucratic methods which streamline work, instead institutions have an interplay
between bureaucratic practices and informal rules and peoples actions (Hall& Taylor
1996:946-948). Meaning that institutions have different roles within which workers take on and
further, workers have an ideal of norms and ideas of how the role that they have should behave
and what actions to take e.g how should someone with a managerial position behave and act,
what the focus area for her/ him is. This leads the actor in this position to beahve in a certain way
based on cultural norms and ideals of this position, meaning that institution impacts the actor's
behavior, which links back to the interaction between individual and bureaucratic methods within
institutions. Sociological institutionalism argues that institutions develop through time to reach a
Fatime Hyseni

new level of legitimity and to be accepted as an institution even if it’s not benefitting the
institution's bureaucratic work effectiveness (Hall &Taylor 1996:948).

Historical institutionalism sees institutions as an interplay between individuals and institutions

where individuals affect institutions and its work (Hall&Taylor 1996:938). It explains how
systems of government are built through decisions, which further impact people's decisions in
the future (Lowndes 2018:60). Historical institutionalism explains the role of individuals in
institutions as utility maximization trying to reach their interests through institutions but
individuals are also limited in their utility-maximizing behavior, they will not behave in a
non-acceptable way because there are norms to follow (Hall& Taylor 1996:939). It can therefore
be argued that individuals within institutions are affected by the norms and ideas of the
institution, meaning that though they have their own goals to reach but are ‘controlled’ by the
institution, not being able to deviate from the rest. Lowndes (2018:59) explains that the
structures of the state explain the relation between groups in society where institutions choose
what policies to forward and which to withdraw. Meaning that depending on the state-structure
there will be differences between social and economic groups because the actors in political
arenas will implement policies in institutions, affecting individuals who work there or
individuals working in different sectors of society.
Fatime Hyseni

Bibliography

Godfrey-Smith, P. (2003). Theory and Reality: An Introduction to the Philosophy of Science.

University of Chicago Press.

Hall, Peter A. and Taylor, Rosemary C.R. (1996). ‘Political Science and the Three New
Institutionalism’. Political Studies. 43, no. 5: 936–57.

Lowndes, V. (2018). Institutionalism. In Lowndes, V., Marsh, D. & Stoker, G. (red.) Theory and
methods in political science. London: Palgrave. Pp. 54-74.

Marsh, D., Ercan, S. & Furlong, P. (2018). A skin not a sweater: Ontology and epistemology in
political science. In Lowndes, V., Marsh, D. & Stoker, G. (red.) Theory and methods in political
science. London: Palgrave. pp. 177-198.