The landscape of post-institutional practice variation theories: from traveling ideas to institutional inertia

Abstract

PurposeInstitutional theory assumes practice adoption and subsequent decoupling. However, there is a range of alternative organizational theories that challenge this view and offer instead their reinterpretation, extension and modification of institutional predictions with regard to the adoption and possible range of various responses and processes that follow the decision to adopt. This paper aims to review this spectrum of theories and suggest how they clarify, supplement, correct, restrict and/or abandon some institutional explanations and predictions.Design/methodology/approachExtensions and alternatives to institutional theory are mainly motivated by the need to have a theory of practice adoption and variation, and a plethora of alternative practice adoption theories currently exists in the literature. The authors review these theories and compare them against institutional theory and against each other.FindingsThe analysis revealed shortcomings and advantages of alternative theories compared to institutional theory and against each other. It is suggested which theory is most useful in each domain of application. The authors review and compare institutional theory, Scandinavian institutionalism, management fashion theory, virus theory and institutional inertia theory and analyze how and whether they are able to reproduce the success of institutional theory and successfully address and resolve its shortcomings and gaps. The authors conclude by discussing whether regular emergences of new theories that account for the idea-handling stage of diffusion signals institutional theory’s limit of validity in this domain.Originality/valueThe problem of idea emergence/diffusion/disappearance and adoption/variation/use are fundamentally different, but both of them motivated researchers to go beyond institutional theory. Despite being the dominant theory of organizations internally consistent and explaining a wide range of empirical observations, it is evident that institutional theory is not a complete theory. This paper contributes to this problem by exploring and comparing existing candidates for practice variation theory.