Institutional Structure of Narratives in the Economy: A Sociological Approach to Modeling Socio-Economic Systems

Abstract

The article investigates institutional narratives as pivotal elements shaping and transforming socio-economic systems. These narratives are viewed as mechanisms that structure institutional norms, shape collective representations and expectations, and influence the behavior of economic agents and decision-making processes. The study focuses on socio-economic systems characterized by interconnections between institutional, cultural, and social components and their adaptability to external challenges. Special attention is given to the life cycle of institutional narratives—emergence, dissemination, saturation, and decline—and the factors influencing their effectiveness in different institutional environments. Narratives are analyzed for their role in ensuring stability, fostering adaptability, and driving transformations within socio-economic systems. The research provides a foundation for improving managerial procedures and strategic planning at various levels of economic aggregation, considering global economic shifts. Methodologically, the study employs an interdisciplinary approach that integrates sociological and economic analyses. Using a sociological perspective, the structure and dynamics of narratives are examined in socio-economic contexts. The analytical tool employed is a modified SIRV model, tailored to capture narrative formation and evolution processes. The scientific novelty of the study lies in the development of methodological principles for incorporating narrative factors into the modeling of complex systems. The findings are relevant for managing economic reforms, enhancing institutional resilience, and conducting strategic planning. Key outcomes include a classification of institutional narratives, insights into their impact on socio-economic stability and transformation, and a framework for integrating narratives into analytical models. The practical significance of the narrative approach is demonstrated in its potential to improve institutional adaptability and foster innovative management strategies in unstable environments. The results also expand tools for analyzing the interplay between institutional and narrative factors, creating opportunities to study socio-economic dynamics in greater detail and across multiple levels.