New theory reveals how institutions shape organizational actions for societal impact.
Institutions like rules and norms limit what organizations can do. This study suggests that institutions constrain organizational action by using practices, categories, and audiences. They created a model where practices are nested in organizations, which are part of categories that spread through institutions. They also say that institutional constraint is the gap between what organizations want to do and what they actually achieve. This new theory helps us understand how institutions control what organizations can do better.