Studying Choice and Change: The Intersection of Institutional Theory and Entrepreneurship Research

Abstract

A lthough there are many potential points of intersection between institutional theory and contemporary studies of entrepreneurship, these have generally remained distinct literatures, with the connections left more implicit than explicit. We argue that there are a number of benefits to explicitly articulating the links between these bodies of scholarship. In this context, we review work that relates to two key questions we believe are especially likely to benefit from the integration of these literatures-namely, how do institutions affect entrepreneurial choices? And how is entrepreneurship related to changes in institutions? We conclude by considering a number of topics for future research suggested by this integration.

Untapped Riches of Meso-Level Applications in Multilevel Entrepreneurship Mechanisms

“…Last, our work adds precision to the entrepreneurial mechanisms employed in existing research by articulating how and why entrepreneurship matters within the broader social context. We build on the insights offered by other scholars who have also argued for more explicit linkages between individual entrepreneurial action and the broader social contexts in which it occurs (Aldrich, 2012;Baker et al, 2005;Ruef & Lounsbury, 2007;Sine & David, 2010;Tolbert et al, 2011;Welter, 2011).…”

Entrepreneurial practices in research-intensive and teaching-led universities

“…Central role played by the socially mediated construction of a common framework of meanings (Scott 2014) should be taken into account for understanding entrepreneurial activity. Some of the decision processes involved in creating a new venture, designing the structure of the organisation and managing relationships with a range of stakeholders (particularly with funders) (Tolbert et al 2011) involve cognitive (as well as relational) processes of sense-making. By applying this reasoning in the entrepreneurial university context, we suggest: Hypothesis 3 Cognitive influences exert a strong effect on the entrepreneurial engagement of researchintensive and teaching-led universities.…”

Different Shades of Green: Environment Uncertainty and the Strategies of Hybrid Organizations

“…Yet to the degree that researchers have explored changing environments over time (Thornton, 2004), studies have focused on drawing linkages between gradual changes in the institutional environment and population-level founding rates. An advantage of this approach is that in such settings, the link between institutional change and entrepreneurial opportunities can be more easily established (see Tolbert, David, & Sine, 2011 for a review of the literature on how institutions shape entrepreneurial choices). However, research has yet to fully explore how entrepreneurial organizations develop their strategic directions contemporaneously with the unfolding of their institutional environments in real time, and the results of these processes for these organizations' strategic orientations.…”