Click here to load reader
Upload
anirudh-agrawal
View
2.557
Download
5
Embed Size (px)
Citation preview
Anirudh AgrawalAnirudh Agrawal
Institutional theory and Social Entrepreneurship
Anirudh AgrawalPhD FellowCopenhagen Business SchoolPorcelænshaven 18A, 0,119DK-2000 FrederiksbergDenmarkOffice.: +45 38 15 34 01M: +45 41 68 95 02e-mail : [email protected]
Anirudh AgrawalAnirudh Agrawal
Last Session
• Microfinance– Theory of Change• Poverty and Microfinance• Financial Inclusion
– Formal banking system and Microfinance• Debt and Equity finance• Information assymetry• Moral hazard
Anirudh AgrawalAnirudh Agrawal
Principles of Microfinance
• Poor people need a variety of financial services, not just loans. • Microfinance is a powerful tool to fight poverty. • Microfinance means building financial systems that serve the poor.• Microfinance must pay for itself to reach large numbers of poor people.• Microfinance is about building permanent local financial institutions. • Microcredit is not the best tool for everyone or every situation. • Interest rate ceilings making it harder for poor people to get credit. • The role of government is to enable financial services, not to provide
them.• Donor funds should complement private capital, not compete with it.• The key bottleneck is the shortage of strong institutions and managers. • Microfinance works best when it measures and discloses its performance.
Anirudh AgrawalAnirudh Agrawal
Institutional theory and Social Entrepreneurship
http://www.youtube.com/watch?v=mL_KmeykiH0
Anirudh Agrawal
OrganizationPopulations
Organizations
THE ORGANIZATIONAL SOCIETY
Organizational Field
ClustersNetworksIndustriesEconomic GroupsCartels
Source: Internet
Anirudh Agrawal 6Anirudh Agrawal
Institutional environment
Social Public regulatory investorComme
rcial
Legitimacy, Reputation, Mission, Vision, Objectives, Sustainability
Organizational Maintenance, Expansion and Transformation
Identity construction, Memory, Power, Degree of coupling
Source: Anirudh Agrawal WIP-1 Seminar
Institutional Theory
Anirudh AgrawalAnirudh Agrawal
Why organizations change?
• Innovation• Market pressures, Competition• New Norms• Changing consumer behaviour
Anirudh AgrawalAnirudh Agrawal
Institutional Theory
• Economic View– Homo Economicus– Efficiency– Profit maximization
• Sociological view– Norms and rules of the society– Culture– Religion– Family– Social Network
Anirudh AgrawalAnirudh Agrawal
What is an institution?
• Walls• Family• Religion• School• Education• Marriage• Rituals
Anirudh AgrawalAnirudh Agrawal
What is an institution?
• Organizational Structure• Bureaucracy• Constitution• Church • Society • Community• Market
Anirudh AgrawalAnirudh Agrawal
Why Organizations appear similar?
Anirudh AgrawalAnirudh Agrawal
Isomorphism
• DiMaggio & Powell: Organizations remain similar– and continue to become more like each other– because of different “isomorphic” pressures.
Anirudh AgrawalAnirudh Agrawal
Types of IsomorphismCompetitive Isomorphism:
Driven by regular market pressures
Institutional Isomorphism: Coercive: Driven by government regulation,
political influence, search for legitimacy Mimetic: Driven by standardized responses to
uncertainty Normative: Socialization of workers–
professionalization– creates pressures to work in accepted ways
Anirudh AgrawalAnirudh Agrawal
Isomorphism
• Competition in Markets– Influence firms to behave in order to respond to
markets• Niche Markets• Emerging Markets• BOP Markets• Open Markets• Close Markets
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Institutional LogicEmbeddednes: The idea that economic relations between
individuals or firms are embedded in actual social networks and do not exist in an abstract idealized market
• Each institution has a central logic
• Logic guides organizing principles, gives actors vocabularies of motive and sense of self
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Institutional Work
• the ways in which individuals, groups, and organizations work to create, maintain, and disrupt the institutions that structure their lives
• the range of ways that people build, sustain, and change institutions.
• understand the role of individuals in building, maintaining, and toppling institutions
• Examples:• Managers in Organizations• Priests in Church• Parents in Family• Community leaders
Lawrence, T., Suddaby, R., & Leca, B. (2011). Institutional Work: Refocusing Institutional Studies of Organization. Journal of Management Inquiry
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Institutional Memory• Collective set of facts, concepts, experiences, and know-how
held by a group of people• Culture• Folk Tales• Stories• Documentations• Processes, Products and Services• How
• Pictures• Movies• Books and Writings• Folktales
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Institutional Void
• Lack of marketing supporting institutions such as market intermediaries, legal protection.– Ashoka Fellowship– Impact investment – Microfinance in Bangladesh– Socialization place for the marginalized in
Copenhagen– HuB Copenhagen– http://www.youtube.com/watch?v=NswJJBJZQgE
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Institutional Entrepreneurship
• Who changes institutions?• paradox of embedded agency• How does new institution get legitimacy?
Leca, Battilana and Boxambaum 2008
Anirudh AgrawalAnirudh Agrawal
Institutional Entrepreneurship
• Gandhi• Martin Luther King• Mo. Yunus• Bill Drayton• Michael Jackson• Elvis Presley• Alferd Hichhock
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Legitimacy• Suchman (1995) “generalised perception or
assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs and definitions.”
• But how is legitimacy constructed?
Anirudh AgrawalAnirudh Agrawal
Types of Legitimacy
• Moral legitimacy• Pragmatic Legitimacy• Cognitive Legitimacy
Suchman 1995
Anirudh AgrawalAnirudh Agrawal
Layers of Legitimacy
Anirudh AgrawalAnirudh Agrawal
Discuss for 10 minutes
• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Next Lecture
• Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (n.d.). Building Social Business Models: Lessons from the Grameen Experience. Long Range Planning
And• Ashoka Fellowship and Unlimited• SKS Microfinance• Specialisterne• Car sharing
Anirudh AgrawalAnirudh Agrawal
Additional reading listIsomorphismDiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147–160. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14846933&site=ehost-liveDiMaggio, P. J., & Anheier, H. K. (1990). THE SOCIOLOGY OF NONPROFIT ORGANIZATIONS AND SECTORS. Annual Review of Sociology, 16(1), 137–159. Retrieved from http://esc-web.lib.cbs.dk/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9101282649&login.asp&site=ehost-live&scope=site
Institutional Work Dobbins, F. (2010). Institutional Work: Actors and Agency in Institutional Studies of Organizations. Administrative Science Quarterly, 55(4), 673–676. Retrieved from http://esc-web.lib.cbs.dk/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=59240580&login.asp&site=ehost-live&scope=site
Lawrence, T. B., & Suddaby, R. (2006). Institutions and Institutional Work. In S. Clegg, C. Hardy, T. B. Lawrence & W. R. Nord (Eds.), The SAGE handbook of organization studies (2nd ed., pp. 215-254). London: Sage Publications• Agency and Institutional Entrepreneurship• Agency and Institutions: A Review of Institutional Entrepreneurship By Bernard Leca ,Julie Battilana ,Eva Boxenbaum (online free)• Institutional logicThronton, Ocasio, & Lounsbury. (2012). The Institutional Logics Perspective: A new approach to culture, structure and process. Oxford: Oxford University Press.
Anirudh AgrawalAnirudh Agrawal