the temporal dynamics of institutionalization - tom … · academy of management review 2001, vol....

22
The Temporal Dynamics of Institutionalization Author(s): Thomas B. Lawrence, Monika I. Winn, P. Devereaux Jennings Source: The Academy of Management Review, Vol. 26, No. 4 (Oct., 2001), pp. 624-644 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/3560245 Accessed: 27/03/2010 23:09 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=aom. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Review. http://www.jstor.org

Upload: dangkhue

Post on 20-Apr-2018

214 views

Category:

Documents


1 download

TRANSCRIPT

The Temporal Dynamics of InstitutionalizationAuthor(s): Thomas B. Lawrence, Monika I. Winn, P. Devereaux JenningsSource: The Academy of Management Review, Vol. 26, No. 4 (Oct., 2001), pp. 624-644Published by: Academy of ManagementStable URL: http://www.jstor.org/stable/3560245Accessed: 27/03/2010 23:09

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available athttp://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unlessyou have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and youmay use content in the JSTOR archive only for your personal, non-commercial use.

Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained athttp://www.jstor.org/action/showPublisher?publisherCode=aom.

Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission.

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academyof Management Review.

http://www.jstor.org

? Academy of Management Review 2001, Vol. 26, No. 4, 624-644.

THE TEMPORAL DYNAMICS OF INSTITUTIONALIZATION

THOMAS B. LAWRENCE MONIKA I. WINN

University of Victoria

P. DEVEREAUX JENNINGS University of British Columbia

In this article we reexamine the relationship between time and processes of institu- tionalization. We argue that pace and stability, two temporal dimensions of institu- tionalization, depend on the mechanism used by agents to support the institutional- ization process. Drawing from the power literature, we develop four types of mechanisms-influence, force, discipline, and domination--and argue that (1) each type will produce a distinctive pattern of pace and stability, and (2) more complex patterns of pace and stability will result from the combined use of multiple mecha- nisms.

In late autumn of 1999, Seattle, Washington, was shut down by protests against one of the world's newest and most powerful institutions, the World Trade Organization (WTO). The min- isterial meeting of the WTO sparked an organ- ized protest involving tens of thousands of peo- ple from all over North America. Labor organizations, environmentalists, antiglobaliza- tion groups, and civil society associations, as well as masses of concerned individuals, con- verged on Seattle. Along with a rally and march through the city, protestors engaged in direct action that was intended to keep delegates away from the convention center where the meetings were being held. For a few days the streets of downtown Seattle were the site of hu- man pyramids, lockdowns (where protestors used combinations of metal pipes and bike locks to connect themselves in such a way that removing them without harming them would be nearly impossible), and street theater involving massive puppets meant to both disrupt traffic and symbolically reclaim the streets. The riot- gear-clad Seattle Police Department responded with tear gas, rubber bullets, and pepper spray in their attempts to clear the streets. For their own part, some WTO delegates went to extraor-

dinary lengths to make it to the meetings- negotiating the conflict-ridden streets, trying to enter buildings by climbing over walls with their briefcases in tow.

The WTO meetings and protests in Seattle represent the intersection of an extraordinary variety of institutional processes all directed at the institutions of international trade. Most crit- ically for this article, the events of that week illustrate the diversity of timelines that are as- sociated with attempts to create, transform, and demolish social institutions. Delegates were in- volved (or were trying to be involved) in the inevitably slow, long-standing negotiations to build multilateral trade agreements. The protest march, speeches, and countertrade conferences organized by antiglobalization organizations were aimed at the even slower job of developing and legitimating a societal discourse around the problems of globalization. In contrast, direct- action protestors were attempting to force an immediate end to this round of negotiations, while the police engaged in a similarly fast- paced attempt to control the situation. As illus- trated by these events and actions, there is a wide range of temporal dynamics associated with processes of institutionalization: new prac- tices, rules, and technologies emerge, diffuse, and become legitimated over time and at vary- ing rates (Leblebici, Salancik, Copay, & King, 1991; Meyer & Rowan, 1977); once established, they endure with greater or lesser degrees of

We thank Sally Maitlis, Michael Tushman, and two anony- mous reviewers for their helpful comments on this article. We also thank Vivien Clark, A. R. Elangovan, and Nelson Phillips for their comments on an earlier version.

624

2001 Lawrence, Winn, and Jennings 625

stability (Christensen, 1997; Fligstein, 1991). We argue that understanding the evolution of insti- tutional fields and the sets of institutions within them requires a fine-grained understanding of these temporal dynamics.

In this paper we examine the temporal dy- namics of institutionalization by focusing on the impacts of different mechanisms that can sup- port the development and maintenance of insti- tutions. Several typologies of institutional mech- anisms have been proposed (e.g., DiMaggio & Powell, 1983; Powell, 1991; Scott, 1991, 1995), which highlight social, cultural, and cognitive mechanisms in particular. Our focus here is on power-based institutional mechanisms, the im- portance and variety of which were highlighted by the events around the Seattle WTO meetings. Protestors, delegates, and police all exploited different forms of power in their attempts to ef- fect institutional change: a march aimed at rais- ing awareness of the political and social issues associated with the trade agreements, direct ac- tion intended to close down the meetings, formal and informal meetings among delegates to de- velop their own trade positions, and chemical weapons and bodily force by the police in order to control the movement of protestors. Although institutional mechanisms have been linked to such issues as their bases of legitimacy (e.g., legal, moral; Scott, 1995) and the dominant ac- tors involved (e.g., the state, professions; DiMag- gio & Powell, 1983), the temporal implications of different mechanisms have not been examined closely or systematically.

With this article we contribute to our under- standing of the relationship between time and institutions in four main ways. First, we develop and investigate two temporal dimensions of in- stitutions: the pace of institutionalization pro- cesses and the stability of the institutions pro- duced. The dimensions we explore here could provide an important foundation for under- standing the role of time in institutional theory. Second, we offer a new typology of the mecha- nisms underpinning the development and main- tenance of institutions-one that we argue has direct and important connections to the tempo- ral dynamics of institutionalization. Third, we begin to unpack dominant assumptions about the temporal dynamics of institutionalization. We argue that the traditional model of institu- tionalization as typified by the S-shaped diffu- sion curve (e.g., Powell & DiMaggio, 1991; Rog-

ers, 1995; Strang & Tuma, 1993) masks a variety of temporal patterns in institutionalization. Fourth, we propose an alternative set of institu- tionalization curves based on the type of insti- tutional mechanism agents use to support the process.

The paper is organized into five major sec- tions. In the first we draw on organizational and sociological discussions of time and temporality to delineate the temporal boundaries of institu- tionalization, and we develop two temporal di- mensions critical to describing institutionaliza- tion processes: pace and stability. In the second section we discuss the impact of institutional mechanisms on the pace and stability of insti- tutionalization and develop a typology of power- based mechanisms. Third, we examine the rela- tionships between each of the types of power- based mechanisms and the two temporal dimensions of institutionalization, formalizing these relationships in a set of propositions. In developing these propositions, we focus on the institutionalization of relatively complex sets of organizational practices (e.g., Fligstein, 1991; Tolbert & Zucker, 1983), rather than on micro- institutionalization at the individual level (e.g., Goffman, 1963) or larger, historical institutions, such as the Catholic mass (e.g., Jepperson, 1991). To illustrate this section we draw on the WTO example and, more extensively, on the emer- gence of corporate environmental management as a nascent institution. Fourth, we examine the effects of combining different institutional mechanisms on the pace and stability of insti- tutionalization processes. Finally, we conclude with a discussion of the implications of our model for institutional and organizational re- search.

TEMPORAL CHARACTERISTICS OF INSTITUTIONALIZATION

In this section we develop the analytical focus of the paper, or the dependent variable in opera- tional terms. We first link discussions of time from sociology and organization theory (Hassard, 1990; Sorokin & Merton, 1937; Zaheer, Albert, & Zaheer, 1999) to traditional studies of institutional pro- cesses in order to sketch the temporal boundaries of the phenomenon on which we focus-institu- tionalization. We then draw from the study of rhythms and regularities in social life (Zerubavel, 1981) to develop specific temporal dimensions that

626 Academy of Management Review October

can describe processes of institutionalization (DiMaggio & Powell, 1983; Meyer & Rowan, 1977; Scott, 1995).

Temporal Boundaries of Institutionalization

In examining the temporal characteristics of a social phenomenon, it is useful to first define the object and establish its temporal boundaries. Here, we follow studies of time in social set- tings, in which researchers argue for the impor- tance of understanding social time as "opera- tional," in that it is tied to the events-and, more important, to the meaning of events-in social life (Clark, 1985; Gurvitch, 1964; Sorokin & Mer- ton, 1937). This conception of time is in contrast to one in which time is constructed as linear and continuous (Gurvitch, 1964). Although a linear conception of time has tended to dominate organ- ization theory (Bluedorn & Denhardt, 1988; Clark, 1985), an event-driven or operational under- standing of time is more consistent with devel- oping an understanding of the dynamics of change processes, such as institutionalization (Clark, 1985). So, rather than set temporal bound- aries based on "clock time" (Sorokin & Merton, 1937) or calendar time (Zerubavel, 1981), we fo- cus on establishing a unit of analysis with tem- poral boundaries that are defined by a set of events and the relationships among them.

A broad range of studies of institutionaliza- tion suggests that there is a typical pattern of events and relationships among them that de- fine the process of institutionalization: objects

are first recognized, then accepted by relatively few actors, and then widely diffused and broadly accepted within a field (Leblebici et al., 1994; Meyer & Rowan, 1977; Stinchcombe, 1965; Zucker, 1987). Zucker (1987), for instance, argues that there is an early phase of partial accep- tance, then a middle phase of rapid diffusion and wider acceptance, then a phase of satura- tion and complete legitimation. In a study of the diffusion of civil service reform, Tolbert and Zucker (1983) found that this pattern of diffusion involved two sets of mechanisms, with early adopters basing their decisions on technical grounds and later adopters responding primar- ily to legitimacy pressures. Consequently, as is shown in Figure 1, institutionalization is pre- sumed by most researchers to occur along some- thing like an S-shaped curve that characterizes most diffusion paths involving both contagion and noncontagion processes (Powell & DiMag- gio, 1991; Rogers, 1995; Strang & Tuma, 1993).

The S-shaped curve represents a key temporal pattern in the study of institutions. In his study of the rhythms of social life, Zerubavel (1981) argues that temporal patterns in social phenom- ena can be found by identifying four major forms of temporal regularity: rigid sequential structures, fixed durations, standard temporal locations, and uniform rates of recurrence. Insti- tutionalization involves what Zerubavel (1981) would refer to as a "rigid sequential struc- ture"-a social phenomenon where there is a relatively fixed order in which events or situa- tions occur. The S-shaped institutionalization

FIGURE 1 Traditional Institutionalization Curve

Pace of Stability of institutionalization the institution

Deinstitutionalization

Percent Diffusion Legitimation adopted

Legitimation adopted

Innovation

Time

2001 Lawrence, Winn, and Jennings 627

curve is defined by a relatively fixed sequence that involves a period of time in which an inno- vation emerges and is diffused, and then a pe- riod in which the innovation remains diffused throughout the field. This temporal pattern de- fines what we refer to in the remainder of this article as an "instance of institutionalization": a new practice, rule, or technology becoming and remaining diffused across an organizational field.

Zaheer et al. (1999) suggest that time scales represent a critical, and yet often missing, ele- ment in the specification of organizational the- ories. The time scale most critical to our discus- sion is the "existence interval," which corresponds to the "length of time needed for one instance of the process, pattern, phenome- non, or event to occur or unfold" (Zaheer et al., 1999: 730). For the study of institutionalization, this would be the length of time over which new practices, rules, or technologies emerged, be- came institutionalized, and remained institu- tionalized within an organizational field (Hoff- man, 1999; Leblebici et al., 1991). In the curve illustrated in Figure 1, the existence interval we focus on is that period of time beginning at the emergence of the new innovation and ending prior to the institution's deinstitutionalization. Thus, our focus in this paper is on the temporal patterns associated with an instance of institu- tionalization.

Temporal Dimensions of Institutionalization

In order to develop a theory that predicts the temporal character of an instance of institution- alization, it is first necessary to establish the temporal dimensions on which the theory will focus. Although institutionalization processes generally have been associated with the S- shaped curve shown in Figure 1 (Powell & Di- Maggio, 1991; Rogers, 1995; Strang & Tuma, 1993), no one precise shape of curve fits the dy- namics associated with all instances of institu- tionalization. We argue that the S-shaped curve represents as a "process" what might be better described as a heterogeneous set of "processes" (Clark, 1985). Consequently, rather than attempt to describe the temporal characteristics of a uni- tary process, we develop dimensions that allow us to describe the temporal variety of possible processes.

First, the rate at which a practice, rule, or technology is diffused throughout an organiza- tional field can vary tremendously. Although in- stitutional theorists traditionally have empha- sized the relative stability and intractability of organizational fields (DiMaggio & Powell, 1983; Meyer & Rowan, 1977), we know that this is not always the case. Even seemingly entrenched fields can undergo revolutionary change that is prompted by disruptive events, where old insti- tutions are uprooted and new ones installed (Fligstein, 1991; Hoffman, 1999; Meyer, 1982). While some innovations diffuse in a relatively slow, evolutionary manner, others diffuse very rapidly (Hoffman, 1999; Leblebici et al., 1991; Rogers, 1995), in a manner much closer to rapid, revolutionary change (Gersick, 1991; Tushman & Anderson, 1986). The variance in the rate at which innovations diffuse leads us to focus on the pace of an institutionalization process as our first temporal dimension. We define the pace of institutionalization as the length of time taken for an innovation to become diffused throughout an organizational field (see Figure 1).

Second, once institutionalization has reached saturation, our focus shifts from change and its pace to the temporal character of the now estab- lished institution. The outcome of an instance of institutionalization is an institutionalized prac- tice, rule, technology, or combination of those in the form of a regime or dominant rhetoric (Leb- lebici et al., 1991; Powell & DiMaggio, 1991; Scott, 1995). At this point the institution has reached the stage of legitimation, and the practices are diffused widely among most participating mem- bers of the field. The issue now is how stable, enduring, and influential the institution will be. In terms of the institutionalization curve, the question is how far out to draw the saturated portion of the curve. Regardless of whether in- stitutionalization occurs quickly or slowly, once established, some institutions are more stable than others (Hoffman, 1999). Indeed, the stability of institutions has received considerable atten- tion in the literature; it has been linked to their degree of structuration (Giddens, 1984), the way in which they are tightly or loosely coupled (March & Olsen, 1976), and the volatility of the social system in which they are embedded (Clegg, 1989). Yet, even though stability has been considered a hallmark of institutions, spe- cific, testable explanations for the degree to which institutions vary in their stability are rel-

628 Academy of Management Review October

atively underdeveloped (Scott, 1995). Therefore, we propose that the second temporal dimension critical for an instance of institutionalization is the stability' of the resulting institution. We de- fine stability as the length of time over which an institution remains highly diffused and legiti- mated (see Figure 1).

In summary, we focus, in this article, on the time it takes for an innovation to diffuse throughout a field and the time during which it remains diffused. These temporal dimensions represent the time periods associated with dif- ferent phases of a sequential structure (Zerubavel, 1981). We do not, in contrast, attempt to develop a theory that predicts either temporal locations (when new institutions will emerge) or rates of recurrence (how often institutions will emerge). We argue that the dimensions we have developed here-pace and stability-combine to characterize the key temporal characteristics of an instance of institutionalization.

MECHANISMS OF INSTITUTIONALIZATION

In this section we begin to address the factors that affect the pace and stability of an instance of institutionalization. We focus here on the mechanisms that support the institutionaliza- tion process-the social forces that energize the diffusion of an innovation and lead to its en- trenchment in an organizational field (DiMaggio & Powell, 1983; Leblebici et al., 1991). First, we examine the suitability of the dominant typol- ogy of institutional mechanisms, originally de- veloped by DiMaggio and Powell (1983), for examining the pace and stability of institution- alization. We then propose an alternative typol- ogy, rooted in sociological and organizational studies of power.

DiMaggio and Powell (1983) offer three mech- anisms that lead to institutionalization: coer- cive, normative, and mimetic pressures. These three have been extended by Scott (1995), in his discussion of three "pillars of institutions," and by Powell (1991), who examines "avenues of in- stitutional reproduction." Coercive pressure is

often associated with the state and refers to the threat or actual use of force by a powerful actor in order to gain compliance. Normative pressure stems from cultural expectations that actors feel compelled to honor, often because they are rooted in professional affiliations. Mimetic pres- sure involves the perception of some value of mimicking a behavior from other referent actors, because the behavior or form appears to be as- sociated with effectiveness. In Scott's (1995) re- formulation of this triumvirate, coercive pres- sure becomes "regulative processes," normative pressure becomes "normative processes," and mimetic pressure becomes the more elaborated concept "cognitive processes."

Despite the common argument that time is an important aspect of these mechanisms (DiMag- gio & Powell, 1983; Powell, 1991; Powell & Di- Maggio, 1991; Scott, 1995), the temporal dimen- sions of these dynamics have been left relatively unexplored and, we believe, are ob- scured somewhat by the categories employed. If we take "coercive isomorphism" as an example of the three mechanisms suggested by DiMag- gio and Powell (1983), the institutionalization processes it describes are likely to vary signifi- cantly with respect to their temporal dynamics. Consider that "coercive isomorphism results from both formal and informal pressures exerted on organizations.... Such pressures may be felt as force, as persuasion, or as invitations to join in collusion" (DiMaggio & Powell, 1983: 150). These authors go on to include within the cate- gory of coercive pressures those that emanate from government mandate, resource interdepen- dence, state-sponsored legitimacy, and more subtle political processes. While the category of coercive pressures may describe a general set of processes, the different mechanisms of institu- tional control included within it seem likely to vary significantly with respect to their temporal dynamics. The immediacy of force or govern- ment mandate seems distinct from the perhaps more protracted process associated with per- suasion; even coercive pressures emanating from the state might happen more quickly (as in a mandated change to some administrative pro- cess) or slowly (as when the government at- tempts to delegitimate some activity through public service advertising). The heterogeneity of temporal dynamics associated with coercive pressures is also seen in the other two of Di- Maggio and Powell's (1983) types, as well as in

1 We use the term stability rather than duration here in order to differentiate this second phase of institutionaliza- tion more clearly from the first. Stability indicates the length of time that an institution endures once it has become dif- fused, whereas duration might equally refer to the entire institutionalization process.

2001 Lawrence, Winn, and Jennings 629

the types suggested by Scott (1995) and Powell (1991). The problem is not that these typologies are not sensible categorizations of institutional processes but that they are not intended to focus our attention on temporal issues.

Rather than attempt to reform the typology of institutional pressures developed by DiMaggio and Powell (1983), we believe a more fruitful approach to the study of time and institutions is the development of a typology of mechanisms that has a clearer connection to the temporal characteristics of institutionalization processes. For the development of this typology, we focus on the idea that different institutions are sup- ported by what Jepperson refers to as "repeti- tively activated, socially constructed, controls" (1991: 145), which work to support the pattern of social practice over time. In other words, a cen- tral feature of the institutionalization of an inno- vation is the set of power relations that supports the process. We argue that such power relations cut across coercive, mimetic, and normative pressures and allow us to trace the temporal dimensions of institutionalization more directly. Therefore, we develop a typology of institutional mechanisms based on the forms of power agents might employ to support an instance of institutionalization.

Dimensions of Power

In developing our typology of institutional mechanisms, we begin by describing its dimen- sions and their connections to the pace and stability of institutionalization. Although exist- ing typologies of power usefully distinguish between various aspects and types of power (Bacharach & Baratz, 1962; French & Raven, 1959; Hickson, Hinings, Schneck, & Pennings, 1972; Pfeffer, 1981b), they focus largely on power as it is manifested in willful acts of influence-- strategies for getting others to do something they otherwise would not do (Dahl, 1957). Al- though influence is clearly a central form of power in organizations, institutionalization pro- cesses are supported by a much broader range of forms of power (Clegg, 1989; Powell, 1991; Scott, 1995). As illustrated in our opening exam- ple, institutionalization can be supported or op- posed by a variety of agents-from individuals to the state-who draw on a wide array of re- sources and strategies. We propose a typology of power based on two dimensions that together

account for a broad range of forms of power and provide a direct connection between institu- tional mechanisms and the pace and stability of institutionalization.

The mode of power. Recently, organizational researchers have begun to include aspects of power that are tied less closely to the influence of organizational actors and more closely to the role of disciplinary systems that work to control organizational members (Clegg, 1989; Deetz, 1992; Hardy & Clegg, 1996; Townley, 1993). In this stream researchers have focused on power that emanates from organized systems of practice, rather than from the discrete actions of inter- ested individuals or groups (e.g., Covaleski, Dirsmith, Heian, & Samuel, 1998). This charac- teristic, the mode of power, forms the first di- mension in the typology we develop. In elabo- rating this dimension, we follow earlier work (Clegg, 1989; Foucault, 1977; Giddens, 1984; Hardy, 1994) in distinguishing between "episod- ic" and "systemic" modes of power.

Episodic power refers to relatively discrete, strategic acts of mobilization initiated by self- interested actors. Historically, this mode of power has dominated the study of power in or- ganizations through the development of two streams of theory (Hardy & Clegg, 1996): one focusing on power acquired through the owner- ship and control of the means of production (e.g., Braverman, 1974; Buroway, 1979; Clegg, 1975; Clegg & Dunkerly, 1980) and the other focusing on the role of power as an alternative to formal authority in organizations (e.g., Hickson et al., 1972; Mintzberg, 1984; Thompson, 1956). Common to both streams has been a connection between power and agency, essentially tying episodes of power to acts of agency (Clegg, 1989; Knights, 1992); at the most general level, power largely has been associated with actors' attempts at "getting things done" (Mintzberg, 1983; Pfeffer, 1981b).

In contrast to episodic power, systemic forms of power work through the routine, ongoing practices of organizations. Examples of systemic forms of power include socialization and accred- itation processes (Covaleski et al., 1998), techno- logical systems (Noble, 1984; Shaiken, 1984), and insurance and tax regimes (Simon, 1988). These forms of power work to advantage particular groups, often without those groups' being obvi- ously or clearly connected to the establishment or maintenance of the practices (Foucault, 1977;

630 Academy of Management Review October

Hardy, 1994; Laclau & Mouffe, 1985). This is the nature of systemic power: routine and seem- ingly disinterested (Clegg, 1989). Systemic forms of power tend to work in an ongoing, prosaic fashion, and they often do not appear to be forms of power (Covaleski et al., 1998; Townley, 1993). This makes the development of systemic forms of power an important strategic option for agents who wish to establish some practice without necessarily being associated with that practice on an ongoing basis. However, sys- temic forms of power may well result in unin- tended consequences, since their long-term ef- fects are likely to be beyond the control of the original agents.

We argue that the mode of power associated with an institutional mechanism will have an important impact on the temporal characteris- tics of the institutionalization processes it sup- ports (see Figure 2). Specifically, whether an in-

stitutional mechanism relies on a form of power that is systemic or episodic will significantly affect the stability of the supported institution. Since the stability of an institution describes the extent to which it endures as diffused and legit- imate, supporting mechanisms that need to be repetitively activated by interested actors likely will lead to less stable institutions, whereas those mechanisms that are routinely or even automatically activated will lead to more stable institutions (Jepperson, 1991; Powell, 1991). Thus, systemic forms of power are more likely than episodic forms of power to be associated with highly stable, long-standing institutions. We ex- plore this relationship in detail in the next major section, where we examine the relationship be- tween specific forms of power and the temporal patterns of institutionalization.

The relationship of power to its target. Despite their important differences, influence and disci-

FIGURE 2 Temporal Dimensions of Institutionalization and Dimensions of Power

Temporal Dimensions Underlying logic dimensions of of power of relationship institutionalization

Requires continuously

Low Mode: repeated Episodic applications of

power to sustain an institution

Stability

Is embedded in routinized

Mode: systems that do High Systemic not require

repeated activation

Relies on Relationship negotiation with

Slow to target: the target of Subject power, which

slows the process

Pace

Does not rely on Relationship negotiation with

Fast to target: the target, thus Object effecting rapid

change

2001 Lawrence, Winn, and Jennings 631

pline both target "the subject"; in other words, the targets of power are assumed to be capable of agency, by which we simply mean the ability to choose (Clegg, 1989; Foucault, 1977; Simon, 1988). This begs the question, however, of what if the exercise of power neither made nor required such an assumption? What if power did not re- quire choice on the part of its target? Such a form of power would construct the target as an "object"-an actor incapable of choice or whose choice was irrelevant to the effective exercise of power. Simon (1988) points out the importance of objectifying forms of power in his examination of the power effects of actuarial practices. He argues that while discipline and influence con- struct the target of power as capable of agency, other increasingly important forms of power do not. Thus, the degree to which power treats the target as a subject or as an object forms the second dimension of our typology.

In employing some forms of power, an agent treats the target as a "subject"-an actor capa- ble of agency. Such is the case with influence, for example, where attempts to negotiate, ex- clude, or manipulate an actor necessarily as- sume the potential for agency on the part of the target (Bacharach & Baratz, 1962; Pfeffer, 1981b). Without such an assumption, an agent's efforts to influence would be nonsensical. With other forms of power, however, agents treat the target as an object-an identifiable individual or group but whose agency or potential agency is inconsequential in the exercise of power.

A variety of objectifying forms of power (both episodic and systemic) have been examined in organizational and sociological research, in- cluding physical violence (Hearn, 1994), punish- ment (French & Raven, 1959; Milgram, 1974), ma- terial technologies (Noble, 1984; Shaiken, 1984), and actuarial practices (Simon, 1988). What ties all of these disparate practices together is their relationship to the target of power. In all of them agents effect a power relationship without re- quiring the target of power to "do" anything; they simply act on the target directly. Agents who engage in objectifying forms of power, thus, are able to affect the behavior of others in ways that leave those targeted actors no choice. Con- sequently, objectifying forms of power can be especially important change mechanisms when agents face targets who are unwilling or unable to choose to comply. These forms of power might also be especially effective when agents at-

tempt to deny certain practices rather than es- tablish new ones.2

We argue that this dimension of power will also have a significant effect on the temporal characteristics of an instance of institutionaliza- tion (see Figure 2). Whereas we argue that the mode of power is associated with the stability of an institution, this dimension of power is more likely to have an impact on the pace of institu- tionalization. This stems from the way in which forms of power that treat the target as a subject rely on some form of negotiation (if often im- plicit) in the process through which a targeted actor comes to adopt some innovation (Clegg, 1989; Simon, 1988). Where agents can remove the element of negotiation, as they do when employ- ing forms of power that treat the target as an object, the speed with which an agent can effect and diffuse a new practice, technology, or rule can be increased significantly. Again, we ex- plore this relationship in detail and connect it to specific forms of power in the section on tempo- ral effects.

An Alternative Typology of Institutional Mechanisms

The two dimensions of power discussed here-its mode and its relationship to its tar- get-provide the basis for a typology of institu- tional mechanisms that forms the foundation for our model of the temporal dynamics of institu- tionalization. We argue that, unlike the institu- tional mechanisms established by DiMaggio and Powell (1983), the types of mechanisms we propose have clear and predictable relation- ships to the pace and stability of institutional- ization. Our typology has four elements, based on the intersection of the two dimensions (see Figure 3). First, where institutionalization is sup- ported episodically and the target is assumed to have agency, the form of support is influence (Bacharach & Baratz, 1962; Lukes, 1974). Second, episodic support of institutionalization that ob- jectifies the target involves force as the institu- tional mechanism (Gramsci, 1971; Harries- Jenkins & Van Doom, 1976; Hearn, 1994; Tilly, 1975). Third, when agency of the target is as- sumed and power is systemic, rather than occur- ring on an episodic basis, institutionalization is

2 Our thanks to an anonymous reviewer for this insight.

632 Academy of Management Review October

FIGURE 3 Mechanisms of Institutionalization

Target as subject Target as object

Influence Force

> Decision making ) Incarceration

Episodic ; Non-decision making > Seizure of property

> Manipulation > Dissolution of corporations

> Coercion > Physical violence

Discipline Domination

> Surveillence > Material technologies Systemic Systemic Normalization ) Actuarial practices

> Examination > Systemic discrimination

supported by a mechanism in the form of disci- pline (Bauman, 1982; Clegg, 1989; Foucault, 1977; Knights, 1992; Townley, 1993). Finally, when in- stitutionalization is supported in a systemic manner by a form of power that treats the target as an object, the institutional mechanism at work is domination (Clegg, 1989; Simon, 1988).

TEMPORAL EFFECTS OF INSTITUTIONAL MECHANISMS

In this section we examine in detail the tem- poral effects of the four institutional mecha- nisms defined above: influence, force, disci- pline, and domination. We argue that each form of power has specific implications for the pace of institutionalization and for the stability of the effected institution. To illustrate these implica- tions we draw on both the WTO example and examples from research on corporate environ- mental management as a nascent institution (Hart, 1995; Hoffman, 1999; Jennings & Zandber- gen, 1995; Orssatto & Clegg, 1999). Although both of these sets of examples highlight the role of the state as a dominant agent of institutional- ization, we also include several examples of other types of actors employing power-based mechanisms to effect institutionalization.

Although the case of the WTO clearly illus- trates that complex institutions are potentially supported (and opposed) by more than one form of power, we believe that in order to understand the interactions among forms, it is first neces- sary to establish the potential impact of each one. Thus, in this section we discuss each form and develop theoretical propositions that for- malize their relationships to temporal patterns of institutionalization; in the following section we examine the impacts of potential interac- tions between the forms.

The Temporal Effects of Influence

Influence has been examined extensively in organizational research (French & Raven, 1959), particularly influence as decision making and non-decision making (Bacharach & Baratz, 1962; Dahl, 1957) and manipulation (Clegg, 1975; Clegg & Dunkerly, 1980; Lukes, 1974). In both decision making and non-decision making in organizations, it is implicitly assumed that a conflict of interests is necessary for power: if there is no conflict, no power need be exercised (Clegg, 1989; Hardy, 1994; Lukes, 1974). Lukes (1974), however, suggests that power is also as- sociated with the elimination of conflict through

2001 Lawrence, Winn, and Jennings 633

manipulation. He argues that some agents can use power to manipulate people's "perceptions, cognitions, and preferences" (Lukes, 1974: 24). While Luke emphasizes the ability of elites to manipulate those under them, other researchers have demonstrated the potential for a wide va- riety of organizational participants to manage meaning (Pettigrew, 1979; Suchman, 1995) through language (e.g., Pfeffer, 1981a) and cul- ture (e.g., Gephart, 1978).

Although these different types of influence vary with respect to their relationship to conflict and the resources employed, they are funda- mentally similar with respect to both dimen- sions of institutional mechanisms considered here and their impact on the temporal patterns of institutionalization. First, each of these kinds of influence involves the exercise of power on individuals or groups as active subjects; to be involved in negotiations around decisions or be actively excluded from those decisions, or even for one's perceptions and beliefs to be shaped in order to gain compliance, all assume the poten- tial for agency. It is this aspect of influence that significantly affects the pace of institutionaliza- tion, in part because the involvement of targets as agents in episodes of influence causes a de- lay in effecting intended change. For example, attempts using influence processes to institu- tionalize corporate environmental management might involve government bodies' establishing limits on pollution output, engaging in random checks, and levying fines for infractions (Hoff- man, 1999, 2000). For such strategies to institu- tionalize corporate environmental management, organizational actors need to engage in deci- sion-making processes, evaluate the relative costs and benefits of compliance, and work out their own approaches to the issue, all of which requires time that slows down the institutional- ization process (e.g., Cordano & Frieze, 2000; Zietsma & Vertinsky, in press).

The pace of institutionalization processes supported by influence-based mechanisms also will be slowed by the diversity of interests in any organizational population, as well as the heterogeneity resulting from influence mecha- nisms. Any influence-based attempt to institu- tionalize a new practice, rule, or technology will only persuade those organizations for whom the incentive (whether positive or negative) out- weighs the costs of adoption (economic, social, and cultural; King & Lenox, 2000; Winn & Keller,

2001). Since that calculation often will depend on idiosyncratic features of the targeted organi- zations, most influence mechanisms will only work on a subset of the target population (King & Lenox, 2000). Consequently, agents interested in diffusing an innovation through the use of influence likely will have to engage in an iter- ative, and often experimental, series of pro- cesses, wherein they develop and implement an array of influence mechanisms tailored to differ- ent subsets of the organizational population. This is precisely what has happened in the arena of governmental fines for pollution, where governments have had to experiment with dif- ferent approaches and revise them based on the reactions of different industries and sectors (Hoffman, 2000; Lyon & Maxwell, in press). To- gether, these dynamics lead to our first proposi- tion.

Proposition la: To the degree that an institutionalization process depends on influence as its supporting mecha- nism, that process will be associated with a slow pace of institutionalization.

The second commonality across kinds of influ- ence that we argue affects the temporal patterns of institutionalization is that each operates in discrete episodes of strategic action. Because institutions are understood to have an enduring quality, and because an influence mechanism is subject to ongoing assessment by its targets, episodes of influence must be repeated contin- uously in order to support a pattern of social practice. Thus, the second significant temporal implication of influence is that institutionaliza- tion based on this mechanism will tend to be relatively unstable. (Figure 4a illustrates an in- fluence-based institutionalization curve.) For ex- ample, when governments attempt to influence the adoption of corporate environmental man- agement through the use of such influence mechanisms as fines or audits, they will be suc- cessful only to the extent that those mechanisms are carried out repeatedly and their occurrence, thus, comes to be expected. This is illustrated by the situation in Mexico, where environmental regulation is well developed, but where, in the absence of continuous enforcement, it has been relatively ineffective (Husted, 1993).

Without either ongoing rewards or threats of sanctions, organizational actors will rationally stop complying with the intended institutional

634 Academy of Management Review October

FIGURE 4 Alternative Institutionalization Curves

(a) Influence-based institutionalization curve (b) Force-based institutionalization curve

* Slow pace * Very fast pace * Low stabilty * Low stability

Time Time

(c) Discipline-based institutionalization curve (d) Domination-based institutionalization curve

* Slow pace * ' * Fast pace

* High stability * High stability

Time Time

(e) Institutionalizati on curve based on curve (f) Institutionalization curve based on force

influence and discipline and domination * Medium pace Very fast pace

* High stability * High stability

Time Time

0 0" PC PC

tj ts

practice. The mixed effectiveness of "command and control" types of regulation for institution- alizing environmental management provides

another example; it has been attributed to the fact that the attention of the targeted actor is directed at the choice between compliance and

2001 Lawrence, Winn, and Jennings 635

noncompliance, rather than at the issue at hand (Lyon & Maxwell, in press). This leads to our next proposition.

Proposition lb: To the degree that an institutionalization process depends on influence as its supporting mecha- nism, that process will be associated with a low level of stability.

The Temporal Effects of Force

Force is the direct, overt use of power to over- come another actor's intentions or behaviors (French & Raven, 1959; Lukes, 1974; Tilly, 1975). The concept of influence involves a target that is capable of agency; force removes that agency. When agents engage in acts of force, they con- struct their targets not as subjects but as objects, precisely because the use of force is antithetical to choice. Social practices supported by rela- tions of force involve both individuals and organ- izations as targets, and they may be effected either legitimately or illegitimately (Harries- Jenkins & Van Doorn, 1976; Hearn, 1994). The legitimate use of force is somewhat restricted by communities and nations to specific actors, such as prisons, psychiatric hospitals, the military, and police agencies that have such powers as arrest, incarceration, and seizure of property. Other organizations, however, also use force on a regular basis: corporations fire employees, bars forcibly remove disruptive patrons, schools confiscate contraband substances, and univer- sities expel poorly performing students. At an organizational level, governmental agencies of- ten have the ability to search, seize, or destroy organizational property (including material, in- tellectual, and symbolic properties, such as trademarks, licenses, and corporate informa- tion), as well as break up or dissolve corpora- tions.

We argue that the way in which acts of force objectify their targets will have a significant effect on the pace of institutionalization pro- cesses. Unlike influence, where the target's choice processes cause delay, the use of force acts immediately and directly on the practices themselves. An example of this dynamic might involve an attempt by the state to institutional- ize a level of environmental performance in a particular industry by closing down plants or revoking operating licenses for those companies

failing to meet required levels. These actions by themselves are not intended to persuade the companies or manipulate their behaviors; rather, they attack the problematic existing so- cial practice directly, intervening nearly instan- taneously in the industry's ability to pollute. Their impact on social practice, therefore, is im- mediate. The effect of force on the pace of insti- tutionalization leads to our next proposition.

Proposition 2a: To the degree that an institutionalization process depends on force as its supporting mechanism, that process will be associated with a fast pace of institutionalization.

The second implication of force as a mecha- nism of institutionalization is, we argue, that the change it effects will tend to be relatively unsta- ble (see Figure 4b). As with influence, force re- quires recurring episodes to effect enduring change; we argue that once those episodes of force stop, so, too, will the associated social practice. An example of this dynamic from cor- porate environmental management is the U.S. Toxic Release Inventory. By law, firms are forced to collect and make publicly available data on the type, toxicity, and quantity of pollution they release into the environment. The enforcement of this law must be enacted repeatedly for it to effect enduring change, since companies would not be likely to continue to make this informa- tion public otherwise. The WTO protests provide a second example of this dynamic: police forc- ibly removed direct action protestors, but many of these same protestors returned to their dem- onstrations as soon as they were released. More broadly, like-minded individuals and organiza- tions (including some of those in Seattle) have been protesting at many of the international trade conferences that have occurred since Se- attle, demonstrating the inability of force to pro- vide a stable basis for institutionalizing behav- ior without its ongoing, repeated application. This leads to the following proposition:

Proposition 2b: To the degree that an institutionalization process depends on force as its supporting mechanism, that process will be associated with a low level of stability.

636 Academy of Management Review October

The Temporal Effects of Discipline

Discipline as a form of power involves an on- going, systemic engagement with the target of power and relies on the agency of that target to have an effect. Marx (1906), Durkheim (1961), and Weber (1978) previously recognized the impor- tance of disciplinary practices, but these prac- tices have received renewed attention in organ- izational research and theory that draws largely from the work of Michel Foucault (Clegg, 1989; Knights, 1992; Knights & Wilmott, 1989; Townley, 1993). Discipline shares with influence an under- standing of the target as a subject, but it goes beyond the assumption of agency that influence imputes upon its targets; the power of discipline is in its capacity to provide the basis for agency in the form of identity. While influence is con- cerned with shaping a subject's actions, disci- pline is concerned with shaping the actual for- mation of the subject (Foucault, 1977; Knights & Wilmott, 1989). Bauman contrasts influence and discipline and argues that, with the advent of disciplinary practices,

Power moved from the distant horizon into the very centre of everyday life. Its object, previ- ously the goods possessed or produced by the subject, was now the subject himself, his daily rhythm, his time, his bodily actions, his mode of life (1982: 40).

Foucault (1977) delineates three critical ele- ments in the process through which discipline works to embed itself in the lives of its targets: (1) hierarchical observation, (2) normalizing judgment, and (3) examination. Hierarchical ob- servation is described in terms of intense, con- tinuous surveillance. Normalizing judgment is concerned with the establishment of rules such that they "function as... an average to be re- spected or as an optimum towards which one must move" (Foucault, 1977: 183). Examination "combines the techniques of an observing hier- archy and those of a normalizing judgment ... that makes it possible to qualify, to classify

and to punish" (Foucault, 1977: 184). Individually and together, these three instruments of disci- pline facilitate the maintenance of power rela- tions through the constitution of their targets' subjectivity. While these three disciplinary mechanisms may be initially located outside the targeted organization or actor, their power comes from their integration into and effect on the identity of the target (Covaleski et al., 1998;

Townley, 1993); disciplined actors are those that have internalized the external demands and made them their own.

We argue that institutionalization that relies on discipline will occur relatively slowly, as originally external pressures are gradually in- ternalized within the targeted organizations. Certification schemes in the British Columbia forest industry provide an example of this dy- namic. A number of industry, government, and nongovernment agencies have developed certi- fication schemes for the forest industry (e.g., ISO 14000, Canadian Standard Association, and For- est Stewardship Council standards). Each one employs independent audits, works to standard- ize process or performance aspects of organiza- tional behavior, and utilizes assessments and comparisons between uncertified and certified or certifiable firms. In order to participate in these schemes, forestry firms submit themselves to intensive surveillance and third-party exam- ination that is organized around a new set of norms for the industry. The agencies sponsoring certification processes intend to move forestry firms toward the goal of more sustainable log- ging practices. The reality is that this movement will occur slowly as forestry firms, both early adopters and followers, adopt the tenets of these certification schemes and integrate them into their routines and systems.

Proposition 3a: To the degree that an institutionalization process depends on discipline as its supporting mecha- nism, that process will be associated with a slow pace of institutionaliza- tion.

The second temporal implication of discipline as an institutional mechanism is that institu- tionalization supported by it will be relatively stable (see Figure 4c). When influence fades, as we argue above, so, too, will the patterns of practice it supports; in contrast, well-disciplined actors (organizational or individual) will not only have accommodated the demands of power but have made them their own. The changes made by one organization within the British Co- lumbia forest industry help to illustrate this dy- namic. MacMillan Bloedel was subject to in- tense, enduring, multidirectional ecological pressures throughout the 1990s, including pres- sures from local and international environmen- tal groups, continuous media scrutiny, and

2001 Lawrence, Winn, and Jennings 637

threats of international boycotts (Svendsen, in press; Winn, 2001; Zietsma & Vertinsky, in press). In response to these pressures, the firm initiated a new, more open approach to communications and relationships with its stakeholders, an- nounced that it would phase out clearcut har- vesting in its British Columbia operations, and began the process of environmental certifica- tion. CEO Tom Stephens publicly stated that he was not caving in to environmentalist pressures but was adapting his company to shifting soci- etal values.

The disciplining of MacMillan Bloedel pro- duced gradual but highly stable changes: the firm shifted from a strategic posture of negotia- tion and regulatory compliance to leadership and innovation; core technology changes re- quired fundamental shifts in material technolo- gies and human skill sets; and changes in its stakeholder relations resulted in self-sustaining reputational effects. External disciplining forces, thus, had led to the internalization and development of new environmental manage- ment practices (Sharma, 2000). This illustrates a key feature of discipline as an institutional mechanism: whereas episodic forms of power need to be repeated on a continual basis in order to sustain institutional change, discipline is able to create stable institutions because the external pressures from which it stems are in- ternalized and become a routine, ongoing part of the targeted organizations. This leads to our next proposition.

Proposition 3b: To the degree that an institutionalization process depends on discipline as its supporting mecha- nism, that process will be associated with a high level of stability.

The Temporal Effects of Domination

Although the term domination has a long and varied history in the social sciences (Arendt, 1958; Habermas, 1972; Marx, 1906), we use it in a very specific sense. We are not concerned here with issues of "false consciousness" (Jermier, 1985; Marx, 1906) or "manipulation" (Clegg, 1975; Lukes, 1974), or with the notion of domination as simply an overwhelming use of power. Rather, we use the term to describe forms of power that support institutionalization processes through systems of organized, routine practices that do

not require agency or choice on the part of those targeted.

This type of institutionalization can be found in a variety of systems, including material tech- nologies, such as the physical layout or the tools used in a manufacturing plant; systemic dis- crimination, in which formalized organizational routines discriminate against some group on an ongoing basis, such as job specification or merit pay; and actuarial practices, in which statistics represent characteristics of a population, such as in insurance practices. These phenomena, in many ways disparate, have in common their ability to support patterns of social action in an ongoing way and without the complicity of those on whom they act. Many material technologies, for instance, work without any episodic activa- tion and construct their targets not as subjects but as objects. Assembly line technologies, for instance, may act on shop floor workers such that the actions of the workers are routinely de- termined by the technology without any epi- sodic intervention or action on management's part.

A more subtle means of domination is through the use of actuarial practices, which involve the use of statistics to represent the characteristics of a population. At the individual level, actuar- ial practices include the use of standardized tests of intelligence, aptitude, or personality and the construction of probability tables reflecting life expectancies and other life chances (Simon, 1988). At the organizational level, government and other bodies routinely construct quantita- tive descriptors of organizations and use statis- tical techniques to describe and represent or- ganizational populations. Simon examines the dynamics of actuarial practices and, in this pas- sage, contrasts them with those of influence: "Where power once sought to manipulate the choice of rational actors, it now seeks to predict behavior and situate subjects according to the risks they pose" (1988: 772). Thus, actuarial prac- tices involve the transformation of the lives of social actors, not through their own actions but through their placement in a social order ab- stracted from their lived experiences.

Domination, like the other mechanisms of in- stitutionalization, has distinct implications for the temporal dynamics of institutionalization. We argue that, like force, the pace of institution- alization supported by domination can be quite rapid. Domination works by accounting for ten-

638 Academy of Management Review October

dencies and behaviors of actors in the develop- ment of physical and social arrangements that eliminate the need to change individual behav- ior. The targets of actuarial practices are con- structed as objects-as locations in actuarial tables, as mechanical objects, as pieces of infor- mation-such that they are managed in place; their properties are accommodated or exploited, rather than affected or reconstructed. Thus, domination can alter social practices quickly, since it does so without the consent or complic- ity of the targets. To effect change in corporate environmental practices, for instance, the state might use material technologies to control infra- structure or critical natural resources (e.g., clos- ing roads; banning the use of particular sub- stances). Another example is that of insurance companies that have developed pollution liabil- ity regimes intended to account for, rather than influence, the environmental impact of corpora- tions (Hoffman, 1999).

Although we argue that the effects of domina- tion, once in place, occur rapidly, most systems of domination, whether material or social, re- quire an initial period in which resources are aggregated and structures developed. In the case of pollution liability regimes, for instance, the effects of these regimes would be immediate once they were in place; their accommodation of corporate environmental impacts would begin as soon as they were implemented by the insur- ance companies. There would, however, be an initial lag time during which the insurance com- panies would need to develop those regimes, including such activities as forming relevant ac- tuarial tables, writing policies, and ensuring the legality of all clauses. The pace of institutional- ization associated with domination leads to our next proposition.

Proposition 4a: To the degree that an institutionalization process depends on domination as its supporting mech- anism, the pace of institutionalization will be slow initially and very fast once the construction of the system of domination is completed.

The second temporal effect of domination is its ability to effect institutionalization that is relatively stable (see Figure 4d). Whereas the episodic nature of influence and force demands repeated and ongoing intervention and conse- quently produces relatively unstable effects, the

systemic quality of domination (and of disci- pline) works to effect stable institutionalization. Moreover, the systemic and objective nature of domination works to minimize resistance, since actors who are its targets often lack a shared identity (in the case of actuarial practices, for example, commonalities are based on abstract criteria, not shared identity) and may not per- ceive its operation as a form of power or at- tribute the effect of power to its source (as is often the case with material or information tech- nologies). These dynamics lead to our next prop- osition.

Proposition 4b: To the degree that an institutionalization process depends on domination as its supporting mech- anism, that process will be associated with a high level of stability.

TEMPORAL EFFECTS OF MECHANISMS IN COMBINATION

As our opening example of the WTO protests illustrates, many institutionalization processes involve a complex interaction of institutional mechanisms and, consequently, a complex set of temporal patterns. While any combination of two or more of the four institutional mechanisms discussed here might be possible, in this sec- tion, for the sake of space, we only examine combinations that involve forms of power that employ similar conceptions of the target: influ- ence with discipline and force with domination. We build on the relationships proposed in the previous section to explore the temporal effects of combining these mechanisms in a single in- stance of institutionalization.

Combining Influence and Discipline

Establishing some institutions demands the active involvement and complicity of the tar- geted actors. This might occur because the dif- fusion of some practices, rules, or technologies simply requires choice and action on the part of the target population. Recycling programs, for instance, are only effective to the extent that the targeted individuals and organizations choose to actively engage in them. In other cases, using force or domination may be impossible, given the resources of the agent involved. For exam- ple, an industry association wanting to reduce

2001 Lawrence, Winn, and Jennings 639

the environmental impact of its members' man- ufacturing processes will likely be unable to either exert force on its members or create con- ditions under which it is impossible for them to do otherwise. In cases such as these, the most likely route for the agent is to combine influence and discipline as institutional mechanisms. The industry association might, for instance, create a set of awards for environmental innovation in their industry (influence) while simultaneously developing a comprehensive, environmental certification process (discipline).

We argue that the effect of combining influ- ence and discipline on the pace of an institu- tionalization process will be additive. Individu- ally, both influence and discipline effect relatively slow rates of diffusion. Together, how- ever, they will effect a pace that is somewhat faster. This is due largely to the parallel pro- cesses of influence and discipline partially off- setting the effect of the heterogeneity of the tar- get population. In the case of the industry association, for instance, some firms might ini- tially be motivated by the publicity associated with the awards, while other firms might re- spond more quickly to a certification scheme, and so to the degree that those are different subsets of the population, more firms will adopt environmental practices more quickly when both influence and discipline are used.

Proposition 5a: To the degree that an institutionalization process depends on both influence and discipline as supporting mechanisms, that process will be associated with a pace of in- stitutionalization that is faster than would be associated with either influ- ence or discipline individually.

With respect to the stability of the institution effected, we argue that the joint effects of influ- ence and discipline will not simply be additive. For most institutions developed through this combination, we believe that the effects of dis- ciplinary practices will gradually overwhelm in- fluence as a mechanism of institutional support (see Figure 4e). Although actors initially may adopt practices based on influence mecha- nisms, continued exposure to the disciplining practices of normalization, observation, and ex- amination (Foucault, 1977) will tend to move their identities in line with the institutionalized norm (Bauman, 1982; Knights & Wilmott, 1994).

As actors build identities that support the insti- tution (e.g., environmentally friendly firms), they will participate in the institution without requir- ing reference to external incentives (e.g., envi- ronmental awards). These dynamics lead to the following proposition.

Proposition 5b: In institutionalization processes that depend on both influ- ence and discipline as their support- ing mechanisms, the effects of disci- pline will usually overwhelm those of influence and, consequently, lead to an institution with a high level of sta- bility.

Combining Force and Domination

Whereas some institutionalization processes depend on the involvement of targeted actors, in other processes agents are more likely to em- ploy mechanisms that objectify the targeted ac- tors, diffusing and embedding sets of practices, rules, and technologies without their active in- volvement. Agents might take this route be- cause of a very high likelihood that the targeted actors would never voluntarily adopt those prac- tices, technologies, or rules-where the institu- tion clearly creates more costs than benefits for the target population, for instance. When this is the case, and when the agent concerned has the ability, the most likely combination of institu- tional mechanisms will be the use of force and domination.

We argue that use of force and domination is likely to occur in sequence, with initial episodes of force paving the way for systems of domina- tion (see Figure 4f). Examples that illustrate such a combination include building dams for water reservoirs or power generation (Espeland, 1998; Hukkinen, 1999) and developing large- scale commercial agriculture (Smith, 1986). In both cases these processes are often associated with initial episodes of force, in which individ- uals and communities are dislocated to make way for industrial development and construc- tion. In less developed countries this may in- volve physical violence sponsored by the state and the multinational firms that are developing the projects (Reed, 1997; Smith, 1986), while in developed countries the force is often in the form of legal expropriation. What follows the initial force in these cases is the construction of tech-

640 Academy of Management Review October

nological changes that act as systems of domi- nation. Once in place, the effects of dams and commercial agricultural landscapes are nearly impossible to resist; the practices that they es- tablish and especially those they preclude are immediately and durably entrenched.

Our point here is not that agents who draw on force and domination will necessarily be able to institutionalize the specific practices they pre- fer; rather, the use of force and domination is likely to transform practices rapidly and with great stability, even though the new pattern of practices may well be an unintended conse- quence of the institutionalization process. The practices that are institutionalized by dams or commercial agriculture, for example, may not correspond to the intentions of their sponsors, but the ways of life around them, including the agricultural, social, and cultural practices of lo- cal communities, will be inevitably and irrevers- ibly affected (Espeland, 1998; Hukkinen, 1999; Smith, 1986). The dynamics associated with com- bining force and domination lead to our last set of propositions.

Proposition 6a: To the degree that an institutionalization process depends on a sequence of force and then dom- ination as its supporting mechanism, that process will be associated with a very fast pace of institutionalization.

Proposition 6b: To the degree that an institutionalization process depends on a sequence of force and then dom- ination as its supporting mechanism, that process will be associated with a high level of stability.

CONCLUSION

In this article we have developed a theoretical framework that connects the mechanisms un- derpinning institutions with two temporal di- mensions of institutionalization. In developing our framework, we explored four types of insti- tutional mechanisms and their temporal conse- quences for institutionalization, arguing that each has distinct and important consequences for the pace of institutionalization and the sta- bility of the institutions produced. We conclude the paper with an exploration of the implica- tions of our framework for institutional and or- ganizational research.

The first implication of the framework devel- oped here involves the role of time as a concept in organizational research. In the call for papers for this special topic forum, the editors argue that the nature of time in and around work or- ganizations is a socially constructed phenome- non tied to both the quality of its experience and its quantitative measurement. We have ex- tended this line of thinking to consider the spe- cific relationship between time and institutions. Institutionalization processes can be described in terms of their pace and stability and can be related to the institutional mechanisms that might affect these dimensions. Our theoretical framework suggests that the temporal dynamics of instances of institutionalization are impor- tant, identifiable, and predictable. We have ar- gued that institutions may be associated with a wide range of temporal dynamics, from the slow and unstable processes of influence to the rapid and stable effects of domination. An important next step suggested by our framework would be the comparative, empirical examination of tem- poral dynamics across institutions. The relation- ships proposed here could provide a foundation for such comparative analysis, both in terms of selecting appropriate cases and interpreting variance in results.

A second implication of this article involves the issue of deinstitutionalization (Oliver, 1992). Although we have not talked explicitly about the dynamics of deinstitutionalization, we would argue that the typology of institu- tional mechanisms developed here could pro- vide a useful basis for exploring deinstitution- alization's temporal patterns. Key issues would include the pace and stability of at- tempts at deinstitutionalizing social practices, the resources necessary to do so, and how different forms of power might underpin such attempts. Consider, as an example, the use of force to deinstitutionalize a set of practices supported by domination. An episode of force might potentially overcome an institution sup- ported by domination, but unless such force were to trigger further episodes, the deinstitu- tionalization might only occur for brief peri- ods. This might produce an institutional rhythm of dominant stability interrupted by occasional volatility. Although protestors might shut down a WTO meeting with picket lines and direct action, even this dramatic in- cident of force will tend to have only short-

2001 Lawrence, Winn, and Jennings 641

term effects, unless the protestors can affect the underlying conditions supporting the prac- tices they oppose. This example touches on only one combination of institutional mecha- nisms that might support institutionalization and deinstitutionalization, but it highlights the complex and important dynamics that could be examined using the framework de- veloped here.

A third implication for research involves the role of the agents who work to effect institution- alization processes. In this article our focus on the temporal dynamics of institutionalization has led us to concentrate on the effects of the institutional mechanisms that, we argue, lead to those dynamics. Integrating the role of agents more fully, however, would add significantly to the model we have developed, since agents are the actors who employ the mechanisms dis- cussed here. Several research questions arise. One concerns the link between agents and mechanisms, specifically in terms of what re- sources or abilities are needed on the part of agents to employ each of the four types of insti- tutional mechanisms. Clearly, the variety of po- tential agents who might be interested in effect- ing institutional change is associated with a wide range of resources. Some resource bundles might be more suited to influence, for instance, whereas other bundles may provide the ability to construct systems of discipline or domination. A second research question would involve the issue of multiple agents. Although we have only discussed the case of single agents, it is clear from our examples and from other research that institutionalization is often supported by coali- tions of agents (Lawrence, Hardy, & Phillips, in press). At the same time, the WTO example highlights the way in which agents also com- pete to effect conflicting institutional changes. Empirical researchers and theory developers could build on the relationships we have pro- posed here to investigate the dynamics of mul- tiagent processes.

Finally, an important issue suggested by this paper is the relationship between the institu- tional mechanisms and the process of ration- alization at the societal level-the inexorable development of the "iron cage." One of the pri- mary insights of institutional theorists has been the recognition that "institutional pressures stem from more general societalwide processes

of rationalization" (Powell, 1991: 189). Under- standing this insight in terms of the typology of institutional mechanisms developed here, we would argue that rationalization processes in- volve a movement away from institutionaliza- tion through influence and force and toward dis- cipline and domination. This would suggest that as organizational fields mature, their dominant causal mechanisms will become those that are systemic rather than episodic in mode. Further- more, as Simon (1988) argues, a move from disci- pline to domination represents a further ration- alization, since the former does not rely on the agency of those being controlled and, conse- quently, may be implemented more reliably and rapidly.

REFERENCES

Arendt, H. 1958. The human condition. Chicago: University of

Chicago Press.

Bacharach, P., & Baratz, M. S. 1962. Two faces of power. American Political Science Review, 56: 947-952.

Bauman, Z. 1982. Memories of class: The pre-history and after-life of class. London: Routledge and Kegan Paul.

Bluedorn, A. C., & Denhardt, R. B. 1988. Time and organiza- tions. Journal of Management, 14: 299-320.

Braverman, H. 1974. Labor and monopoly capital. New York:

Monthly Review Press.

Buroway, M. 1979. Manufacturing consent. Chicago: Univer- sity of Chicago Press.

Christensen, C. M. 1997. The innovator's dilemma: When new technologies cause great firms to fail. Cambridge, MA: Harvard Business School Press.

Clark, P. 1985. A review of the theories of time and structure for organizational sociology. In S. B. Bacharach & S. M. Mitchell (Eds.), Research in the sociology of organiza- tions: 35-79. Greenwich, CT: JAI Press.

Clegg, S. R. 1975. Power, rule and domination. London:

Routledge.

Clegg, S. R. 1989. Frameworks of power. London: Sage.

Clegg, S. R., & Dunkerly, D. 1980. Organization, class and control. London: Routledge and Kegan Paul.

Cordano, M., & Frieze, I. H. 2000. Pollution reduction prefer- ences of U.S. environmental managers: Applying Ajzen's theory of planned behavior. Academy of Management Journal, 43: 627-641.

Covaleski, M. A., Dirsmith, M. W., Heian, J. B., & Samuel, S. 1998. The calculated and the avowed: Techniques of

discipline and struggles over identity in Big Six public accounting firms. Administrative Science Quarterly, 43: 293-327.

Dahl, R. 1957. The concept of power. Behavioral Science, 20: 210-215.

642 Academy of Management Review October

Deetz, S. 1992. Democracy in an age of corporate coloniza- tion: Developments in communication and the politics of

everyday life. Albany, NY: State University of New York.

DiMaggio, P. J., & Powell, W. W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in institutional fields. American Sociological Review, 48: 147-160.

Durkheim, E. 1961. Moral education. Glencoe, IL: Free Press.

Espeland, W. N. 1998. The struggle for water: Politics, ration-

ality and identity in the American Southwest. Chicago: University of Chicago Press.

Fligstein, N. 1991. The structural transformation of American

industry: An institutional account of the causes of diver- sification in the largest firms, 1919-1979. In W. W. Powell & P. J. DiMaggio (Eds.), The new institutionalism in or-

ganizational analysis: 311-336. Chicago: University of

Chicago Press.

Foucault, M. 1977. Discipline and punish: The birth of the

prison. New York: Vintage Books.

French, J. R. P., & Raven, B. 1959. The bases of social power. In D. Cartwright & A. Zander (Eds.), Studies in social

power: 150-167. Ann Arbor: University of Michigan.

Gephart, R. P. 1978. Status degradation and organizational succession: An ethnomethodological analysis. Adminis- trative Science Quarterly, 28: 553-581.

Gersick, C. J. G. 1991. Revolutionary change theories: A mul- tilevel exploration of the punctuated equilibrium para- digm. Academy of Management Review, 16: 10-36.

Giddens, A. 1984. The constitution of society: Outline of a

theory of structuration. Cambridge: Polity Press.

Goffman, E. 1963. Stigma: Notes on the management of

spoiled identity. Englewood Cliffs, NJ: Prentice-Hall.

Gramsci, A. 1971. Selections form the prison notebooks. (Ed- ited and translated by Q. Hoare & G. N. Smith.) New York: International Publishers.

Gurvitch, G. 1964. The spectrum of social time. Dordtrecht, Netherlands: Reidel.

Habermas, J. 1972. Knowledge and human interests. London: Heinemann.

Hardy, C. 1994. Power and politics in organizations. In C. Hardy (Ed.), Managing strategic change: 220-237. Lon- don: Sage.

Hardy, C., & Clegg, S. R. 1996. Some dare call it power. In S. R. Clegg, C. Hardy, & W. R. Nord (Eds.), Handbook of

organization studies: 622-641. London: Sage.

Harries-Jenkins, G., & Van Doorn, J. (Eds.). 1976. The military and the problem of legitimacy. London: Routledge.

Hart, S. 1995. A natural-resource-based view of the firm. Academy of Management Review, 20: 986-1014.

Hassard, J. 1990. Introduction: The sociological study of time. In J. Hassard (Ed.), The sociology of time: 1-18. Hounds- mill, UK: Macmillan.

Hearn, J. 1994. The organization(s) of violence: Men, gender relations, organizations, and violence(s). Human Rela- tions, 47: 731-754.

Hickson, D. J., Hinings, C. R., Schneck, R. E., & Pennings, J. M. 1972. A strategic contingencies theory of intra-organiza- tional power. Administrative Science Quarterly, 16: 216- 229.

Hoffman, A. J. 1999. Institutional evolution and change: En- vironmentalism and the U.S. chemical industry. Acad- emy of Management Journal, 42: 351-371.

Hoffman, A. J. 2000. Competitive environmental strategy: A guide to the changing business landscape. Washington, DC: Island Press.

Hukkinen, J. 1999. Institutions of environmental manage- ment: Constructing mental models and sustainability. London: Routledge.

Husted, B. W. 1993. Free trade, national sovereignty and the environment: A transaction-cost approach to transborder pollution and environmental regulation. Paper pre- sented at the International Association for Business and Society Meetings, San Diego.

Jennings, P. D., & Zandbergen, P. 1995. Ecologically sustain- able organizations: An institutional approach. Academy of Management Review, 204: 1015-1052.

Jepperson, R. L. 1991. Institutions, institutional effects, and institutionalization. In W. W. Powell & P. J. DiMaggio (Eds.), The new institutionalism in organizational analysis: 143-163. Chicago: University of Chicago Press.

Jermier, J. M. 1985. When the sleeper wakes: A short story extending themes in radical organizational theory. Jour- nal of Management, 11: 67-80.

King, A. A., & Lenox, M. J. 2000. Industry self-regulation without sanctions: The chemical industry's responsi- ble care program. Academy of Management Journal, 43: 698-716.

Knights, D. 1992. Changing spaces: The disruptive impact of a new epistemological location for the study of manage- ment. Academy of Management Review, 17: 514-536.

Knights, D., & Wilmott, H. 1989. From degradation to subju- gation in social relations: An analysis of power and subjectivity at work. Sociology, 23: 535-538.

Laclau, E., & Mouffe, C. 1985. Hegemony & socialist strategy. London: Verso.

Lawrence, T. B., Hardy, C., & Phillips, N. In press. Institu- tional effects of interorganizational collaboration: The emergence of proto-institutions. Academy of Manage- ment Journal.

Leblebici, H., Salancik, G. R., Copay, A., & King, T. 1991. Institutional change and the transformation of interor- ganizational fields: An organizational history of the U.S. radio broadcasting industry. Administrative Science Quarterly, 36: 333-363.

Lukes, S. 1974. Power: A radical view. Houndsmill, UK: Mac- millan.

Lyon, T. P., & Maxwell, J. W. In press. "Voluntary" approaches to environmental regulation: A survey. In M. Franzini & A. Nicita (Eds.), Environmental economics and environ- mental policy: 142-174. Aldershot, UK: Ashgate.

2001 Lawrence, Winn, and Jennings 643

March, J. G., & Olsen, J. P. 1976. Ambiguity and choice in

organizations. Oslo, Norway: Universitetsforlaget.

Marx, K. 1906. Capital, Vols. 1, 2, & 3. (Translated by S. Moore, E. Aveling, & E. Untermann.) Chicago: University of Chi-

cago Press.

Meyer, A. 1982. Adapting to environmental jolts. Administra- tive Science Quarterly, 27: 515-537.

Meyer, J. W., & Rowan, B. 1977. Institutionalized organiza- tions: Formal structure as myth and ceremony. Ameri- can Journal of Sociology, 83: 340-363.

Milgram, S. 1974. Obedience to authority: An experimental view. New York: Harper & Row.

Mintzberg, H. 1983. Power in and around organizations. Englewood Cliffs, NJ: Prentice-Hall.

Mintzberg, H. 1984. Power and organizational life cycles. Academy of Management Review, 9: 207-224.

Noble, D. 1984. Forces of production: A social history of in- dustrial automation. New York: Knopf.

Oliver, C. 1992. The antecedents of deinstitutionalization. Organization Studies, 13: 563-588.

Orssatto, R. J., & Clegg, S. R. 1999. The political economy of organizations: Toward a framework for analyzing busi- ness-environment relationships. Organization and Envi- ronment, 12: 263-279.

Pettigrew, A. M. 1979. On studying organizational cultures. Administrative Science Quarterly, 24: 570-581.

Pfeffer, J. 1981a. Management as symbolic action. Research in Organizational Behavior, 3: 1-52.

Pfeffer, J. 1981b. Power in organizations. Marshfield, MA: Pitman.

Powell, W. W. 1991. Expanding the scope of institutional analysis. In W. W. Powell & P. J. DiMaggio (Eds.), The new institutionalism in organizational analysis: 183-203.

Chicago: University of Chicago Press.

Powell, W. W., & DiMaggio, P. 1991. The new institutionalism in organizational analysis. Chicago: University of Chi- cago Press.

Reed, R. 1997. Forest dwellers, forest protectors: Indigenous models for international development. Boston: Allyn and Bacon.

Rogers, E. M. 1995. Diffusion of innovation (4th ed.). New York: Free Press.

Scott, W. R. 1991. Unpacking institutional arguments. In W. W. Powell & P. J. DiMaggio (Eds.), The new institu- tionalism in organizational analysis: 164-182. Chicago: University of Chicago Press.

Scott, W. R. 1995. Institutions and organizations. Thousand Oaks, CA: Sage.

Shaiken, H. 1984. Automation and labor in the computer age. New York: Holt, Rinehart & Winston.

Sharma, S. 2000. Managerial interpretations and organization- al context as predictors of corporate choice of environmen- tal strategy. Academy of Management Journal, 43: 681-697.

Simon, J. 1988. The ideological effects of actuarial practices. Law & Society Review, 22: 771-800.

Smith, S. 1986. Entrepreneurial agriculture and the involu- tion of agricultural dynamics in the Americas. In S. Greenfield & A. Strickon (Eds.), Entrepreneurship and social change: Monographs in economic anthropology: 96-123. Washington, DC: University Press of America.

Sorokin, P., & Merton, R. 1937. Social time: A methodological and functional analysis. American Journal of Sociology, 42: 615-629.

Stinchcombe, L. A. 1965. Social structure and organizations. In J. G. March (Ed.), Handbook of organizations: 142-193.

Chicago: Rand McNally.

Strang, D., & Tuma, N. B. 1993. Spatial and temporal hetero-

geneity in diffusion. American Journal of Sociology, 99: 614-639.

Suchman, M. C. 1995. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20: 571-610.

Svendsen, A. In press. From conflict to collaboration: The evolution of corporate-stakeholder relationships in the forest sector. In J. Andriof, & M. MacIntosh, (Eds.), Per-

spectives on corporate citizenship: Context, content and

processes. Sheffield, UK: Greenleaf.

Thompson, J. D. 1956. Authority and power in identical organ- izations. American Journal of Sociology, 62: 290-301.

Tilly, C. 1975. The formation of national states in Western

Europe. Princeton, NJ: Princeton University Press.

Tolbert, P. S., & Zucker, L. G. 1983. Institutional sources of

change in the formal structure of organizations: The diffusion of civil service reform, 1880-1935. Administra- tive Science Quarterly, 28: 22-39.

Townley, B. 1993. Foucault, power/knowledge, and its rele- vance for human resource management. Academy of

Management Review, 18: 518-545.

Tushman, M. L., & Anderson, P. 1986. Technological discon- tinuities and organizational environments. Administra- tive Science Quarterly, 31: 439-465.

Weber, M. 1978. Economy and society: An outline of interpre- tive sociology. Berkeley: University of California Press.

Winn, M. I. 2001. Building stakeholder theory with a decision

modeling methodology. Business & Society, 40: 133-166.

Winn, M. I., & Keller, L. R. 2001. A modeling methodology for

multi-objective multi-stakeholder decisions: Implica- tions for research. Journal of Management Inquiry, 10: 166-181.

Zaheer, S., Albert, S., & Zaheer, A. 1999. Time scales and

organization theory. Academy of Management Review, 24: 725-741.

Zerubavel, E. 1981. Hidden rhythms: Schedules and calen- dars in social life. Chicago: University of Chicago Press.

Zietsma, C., & Vertinsky, I. B. In press. Shades of green: Cognitive framing and the dynamics of corporate envi- ronmental response. Journal of Business Administration and Policy Analysis.

Zucker, L. G. 1987. Institutional theories of organizations. Annual Review of Sociology, 13: 443-464.

644 Academy of Management Review October

Thomas B. Lawrence is an associate professor at the University of Victoria in Canada. He received his Ph.D. from the University of Alberta. His research interests focus on institutional theory, power, and organizational discourse.

Monika I. Winn is an assistant professor at the University of Victoria in Canada. She received her Ph.D. from the University of California at Irvine. Her primary research interests focus on the link between organizations and the natural environment.

P. Devereaux Jennings is an associate professor at the University of British Columbia. He received his Ph.D. from Stanford University. His research interests include institu- tional theory and organizations and the natural environment.