Institutionalization: A Conceptual Review

• Published in: Alınteri Sosyal Bilimler Dergisi Vol. 3; no. 2; pp. 225 - 235
• Main Authors: Çağla ÖZDEMİR AYDIN, Fatma Tehra ZAN
• Format: Journal Article
• Language: English
• Published: Adem Yavuz Sonmez 01.12.2019
• Subjects: business; institutionalization; legitimacy; objectives of institutionalization
• ISSN: 2564-6583; 2602-229X
• DOI: 10.30913/alinterisosbil.514545

Businesses need institutionalization in order to protect their assets and ensure their sustainability. In today's world where competition is intense and continuous change is needed, enterprises can be distinguished from their competitors by institutionalization. The concept of institutionalization focuses on how businesses gain an edge over the competition, their environmental conditions and the decisionmaking processes of the business. With institutionalization, businesses learn how to transform changing environmental conditions in their favor and how they can maintain their success in the past. In this respect, it can be said that the concept of institutionalization emphasizes the adaptation process of the enterprise and how it can control this adaptation process. The aim of the study is to examine the institutional conditions, which is a theory that examines the environmental conditions and interactions of the enterprises and researches the institutions that affect the enterprises and to reveal the reasons that push the enterprises to institutionalization. In the context of institutionalization studies, there are many researches in the literature but how to go to institutionalization has not been objectively revealed. In this study, which is a conceptual study, the reasons that lead to institutionalization and institutionalization are explained through literature review. Institutionalization is a concept made up of many factors. Therefore, while examining institutionalization conceptually in the study, first of all, the concept of institutionalization, aims of institutionalization (legitimacy, gaining predictability, gaining balance, increasing business resources and compliance), dimensions of institutionalization (formalization, professionalization, accountability, cultural power and consistency) and pushing enterprises to institutionalization the reasons are explained and then the importance of institutionalization in enterprises is emphasized. In this respect, it has been concluded that institutionalization is a very important factor for the competitiveness and survival of enterprises.