Extending the use of institutional theory in operations and supply chain management research: Review and research suggestions

Abstract

Purpose: – Increasing empirical evidence suggests organizational actions are not always driven by economic efficiency considerations, contrary to the rational decision making viewpoint dominant in the field. Institutional theory, examining the causes of isomorphism within organizations, provides an alternative viewpoint to the adoption of strategies and practices in managing operations and supply chains. Applications have so far been limited to few topics, such as quality management and adoption of electronic tools. This study aims to contribute to an increased understanding of the theory's explanatory value in the field by presenting central research avenues yet unexplored. Design/methodology/approach: – The paper begins with a review of the past institutional theory studies in the field. Important new contexts and research directions are then identified with the aim to increase understanding of how institutional factors operate in the field. Finally, a critical evaluation of empirical data collection and construct formation in the past and future studies is provided. Findings: – The paper identifies three major institutional theory related research avenues in the field with a potential for theoretical and practical contributions. Two of these – role of uncertainty and relationships between institutional pressures – serve to contribute to how the theory applies to different operational contexts. The third one recommends a reflection on the role of academia as a source and target of institutional pressures. Originality/value: – The discussion, debate and analysis offered is intended to stimulate and drive further institutional theory studies in the field with an increasing scope as well as more refined measurement in empirical work.