New institutionalism

Neo institutionalism (also referred to as

neo-institutionalist theory or
institutionalism) is an approach to the
study of institutions that focuses on the
constraining and enabling effects of formal
and informal rules on the behavior of
individuals and groups.[1] New
institutionalism traditionally encompasses
three major strands: sociological
institutionalism, rational choice
institutionalism, and historical
institutionalism.[2][3] New institutionalism
originated in work by sociologist John
Meyer published in 1977.[4]

History

The study of institutions and their

interactions has been a focus of academic
research for many years. In the late 19th
and early 20th century, social theorists
began to systematize this body of
literature. One of the most prominent
examples of this was the work of German
economist and social theorist Max Weber;
Weber focused on the organizational
structure (i.e. bureaucracy) within society,
and the institutionalization created by
means of the iron cage which
organizational bureaucracies create. In
Britain and the United States, the study of
political institutions dominated political
science until the 1950s. This approach,
sometimes called 'old' institutionalism,
focused on analyzing the formal
institutions of government and the state in
comparative perspective. It was followed
by a behavioral revolution which brought
new perspectives to analyzing politics,
such as positivism, rational choice theory,
and behavioralism, and the narrow focus
on institutions was discarded as the focus
moved to analyzing individuals rather than
the institutions which surrounded them.[5]
New Institutionalism was a reaction to the
behavioral revolution.[5][6]

Institutionalism experienced a significant

revival in 1977 with two influential papers
by John W. Meyer and Brian Rowan on one
hand and Lynn Zucker on the other.[7][8] The
revised formulation of institutionalism
proposed in this paper prompted a
significant shift in the way institutional
analysis was conducted. Research that
followed became known as "new"
institutionalism, a concept that is generally
referred to as "neo-institutionalism" in
academic literature. Another significant
reformulation occurred with Paul DiMaggio
and Walter W. Powell's paper on
isomorphism.[9][8] The three papers had in
common that they explained the practices
of organizations not in terms of efficacy
and efficiency, but in terms of legitimacy.
The functions of an organization did not
necessarily reflect rational or optimal ends,
but were instead myths, ceremonies and
scripts that had a veneer of rationality.[8]

The following decade saw an explosion of

literature on the topic across many
disciplines, including those outside of the
social sciences. Examples of the body of
work in the decade which followed can be
found in DiMaggio and Powell's 1991
anthology in the field of sociology;[8] in
economics, the Nobel Prize-winning work
of Douglass North is a noted example.

More-recent work has begun to emphasize

multiple competing logics,[10][11] focusing
on the more-heterogeneous sources of
diversity within fields[11] and the
institutional embeddedness of technical
considerations.[12][13] The concept of logic
generally refers to broader cultural beliefs
and rules that structure cognition and
guide decision-making in a field. At the
organization level, logic can focus the
attention of key decision-makers on a
delimited set of issues and solutions,[14]
leading to logic-consistent decisions that
reinforce extant organizational identities
and strategies.[15] In line with the new
institutionalism, social rule system theory
stresses that particular institutions and
their organizational instantiations are
deeply embedded in cultural, social, and
political environments and that particular
structures and practices are often
reflections of as well as responses to rules,
laws, conventions, paradigms built into the
wider environment.[16]
Old institutionalism

Kathleen Thelen and Sven Steinmo

contrast New Institutionalism with "Old
Institutionalism", which was
overwhelmingly focused on detailed
narratives of institutions, with little focus
on comparative analyses. Thus, the Old
Institutionalism was unhelpful for
comparative research and explanatory
theory. This "Old Institutionalism" began to
be undermined when scholars increasingly
highlighted how the formal rules and
administrative structures of institutions
were not accurately describing the
behavior of actors and policy outcomes.[17]
Definition of institution

There is no agreed upon definition of

institution in new institutionalist
scholarship.[8] Mats Alvesson and Andre
Spicer wrote in 2018 that it had become
"difficult to agree what an institution is not
– because institutions have become
everything... When the term institution is
defined, it is done so in broad and vague
ways."[8]

Diversity of scholarship

Numerous scholarly approaches have been

described as being part of New
institutionalism.[2][5][18]

Sociological institutionalism

Sociological institutionalism is a form of

new institutionalism that concerns "the
way in which institutions create meaning
for individuals, providing important
theoretical building blocks for normative
institutionalism within political science".[19]
Some sociological institutionalists argue
that institutions have developed to become
similar (showing an isomorphism) across
organizations even though they evolved in
different ways.[20][7] Institutions are
therefore seen as important in cementing
and propagating cultural norms.[21]
Sociological institutionalists also
emphasize how the functions and
structures of organizations do not
necessarily reflect functional purposes, but
rather ceremonies and rituals.[3][7] Actors
comply with institutional rules and norms
because other types of behavior are
inconceivable; actors follow routines
because they take a for-granted
quality.[22][23]

Normative institutionalism is a sociological

interpretation of institutions and holds that
a "logic of appropriateness" guides the
behavior of actors within an institution. It
predicts that the norms and formal rules of
institutions will shape the actions of those
acting within them. According to James
March,[24] the logic of appropriateness
means that actions are "matched to
situations by means of rules organized into
identities." Thus normative institutionalism
views that much of the behavior of
institutional actors is based on the
recognized situation that the actors
encounter, the identity of the actors in the
situation, and the analysis by the actor of
the rules that generally govern behavior for
that actor in that particular situation.
New institutional economics

New institutional economics (NIE) is an

economic perspective that attempts to
extend economics by focusing on the
institutions (that is to say the social and
legal norms and rules) that underlie
economic activity and with analysis
beyond earlier institutional economics and
neoclassical economics. It can be seen as
a broadening step to include aspects
excluded in neoclassical economics. It
rediscovers aspects of classical political
economy. Major scholars associated with
the subject include Masahiko Aoki, Armen
Alchian, Harold Demsetz,[25][26] Steven N. S.
Cheung,[27][28] Avner Greif, Yoram Barzel,
Claude Ménard (economist), Daron
Acemoglu, and four Nobel laureates—
Ronald Coase,[29][30] Douglass North,[31][32]
Elinor Ostrom,[33] and Oliver
Williamson.[34][35][36] A convergence of
such researchers resulted in founding the
Society for Institutional & Organizational
Economics (formerly the International
Society for New Institutional Economics) in
1997.

Rational choice institutionalism

Rational choice institutionalism is a

theoretical approach to the study of
institutions arguing that actors use
institutions to maximize their utility.[37][38]
Institutions are understood to be
exogenously given constraints ("rules of
the game") on rational individual behavior.
It employs analytical tools borrowed from
neo-classical economics to explain how
institutions are created, the behaviour of
political actors within it, and the outcome
of strategic interaction. Rational choice
institutionalism draws heavily from rational
choice theory but is not identical to it.
Proponents argue that political actors'
rational choices are constrained (called
"bounded rationality"). These bounds are
accepted as individuals realize their goals
can be best achieved through institutions.
In other words, institutions are systems of
rules and inducements to behavior in
which individuals attempt to maximize
their own benefit.

According to Erik Voeten, rational choice

scholarship on institutions can be divided
between (1) rational functionalism and (2)
Distributive rationalism.[38] The former
sees organizations as functional optimal
solutions to collective problems, whereas
the latter sees organizations as an
outcome of actors' individual and
collective goals.[38] Since individual and
collective goals may conflict, the latter
version of RCI accepts that suboptimal
institutions are likely.[39]

Historical institutionalism

Emphasizes how timing, sequences and

path dependence affect institutions, and
shape social, political, economic behavior
and change.[40][41] Unlike functionalist
theories and some rational choice
approaches, historical institutionalism
tends to emphasize that many outcomes
are possible, small events and flukes can
have large consequences, actions are hard
to reverse once they take place, and that
outcomes may be inefficient. A critical
juncture may set in motion events that are
hard to reverse, because of issues related
to path dependency.[42][43][44][45] Historical
institutionalists tend to focus on history
(longer temporal horizons) to understand
why specific events happen.[40]

Discursive institutionalism

Proponents of discursive institutionalism,

such as Vivien Schmidt, emphasize how
ideas and discourses affect institutional
stability and change.[46][47]
Constructivist institutionalism

Constructivist institutionalists[48] assert

that political, social, or policy discourses
can perform communicative functions:
actors publicly expressing ideas can lead
to social change, or coordinating functions.
Thus ideas and meaning provide a
mechanism for multiple actors to achieve
consensus on norms and values and thus
create social change.[49] This is
increasingly moving beyond political
science and into international relations
theory and foreign policy analysis.[50][51]
Feminist institutionalism

Feminist institutionalism is a new

institutionalist approach which looks at
"how gender norms operate within
institutions and how institutional
processes construct and maintain gender
power dynamics".[19]

See also

Critical juncture theory Society

portal
Institutional logic
Institutional theory

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