In this conceptual paper, we aim to revisit key research themes in contemporary organizational institutionalism and by doing this, redirect attention of scholars in public administration towards the most promising domains of application of institutional theory. We propose to shift attention from enabling and power-induced framing of institutional theory towards understanding it as a theory that helps recognize and analyse institutional pressures, constraints and inertia that influence administrative reforms and other organizational change attempts in public organizations. We sharpen the focus of institutional theory, specify the boundaries of institutional explanations by analysing questions that lie beyond institutional theory domain of application and suggest most promising research directions. Thus, we warn against unnecessary inflation of the scope of a theoretical apparatus and “explaining” how actors create, change and disrupt institutions and propose how institutional theory can be applied to predict the patterns of success or failure of changes in the public sector.