DANCEST 805 Lecture Notes - Lecture 17: Organisational Routines, Deinstitutionalisation, Deep Structure And Surface Structure

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Institutional transitions in some emerging economies, especially those moving from central planning to market competition (e. g. , china, poland, russia), are so pervasive that these economies are simply labelled transition economies. Among many possible institutional transitions, i concentrate on a particular subset, which is identified by the world bank (2002) as the most salient for emerging economies as they move toward more market competition. North more formally defines institutions as "the humanly devised constraints that structure human interaction" Scott argues that at the most fundamental level, institutions have three pillars: The regulative pillar focusses on formal rule systems and enforcement mechanisms sanctioned by the state. The normative pillar defines legitimate means to pursue valued ends. The cognitive pillar refers to taken-for-granted beliefs and values that are imposed on, or internalized by, social actors. These three pillars of institutions provide three "related but distinguishable bases of legitimacy. Deinstitutionalization refers to the erosion or discontinuity of an institutionalized organizational practice.

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