Neo-Institutionalism

Neo-Institutionalism is a theory that examines how institutions—such as organizations, laws, and norms—shape the behavior of individuals and groups within society. It emphasizes that institutions influence actions not only through formal rules but also via shared beliefs, cultural practices, and social expectations. This perspective recognizes that organizations often adopt similar structures and practices because they seek legitimacy and stability, rather than solely optimizing efficiency. In essence, neo-institutionalism explores how societal frameworks and ingrained norms guide organizations and influence decision-making over time.