Institutional Theory: Relevance to Supply Chains

Abstract

Since it was first introduced in the mid-1970s, Institutional Theory has been extensively employed in management research. Previous studies, across disciplines, have mostly used organizations as a unit of analysis. Very few studies apply institutional theory concepts to supply chains. Supply chains are defined by interorganizational processes which conform to organizational fields, a central construct of the new institutional theory. Supply chain, therefore, forms an appropriate unit of analysis for an examination of IT concepts. By relating the fundamental elements of the theory to supply chains, this paper attempts to establish the conceptual validity of institutional theory to supply chains.