Bridging Institutional Theory and Social and Environmental Efforts in Management: A Review and Research Agenda

Abstract

This review examines the integration of institutional theory with social and environmental efforts in management (i.e., regarding sustainability, corporate social responsibility, and environmental, social, and governance objectives). By analyzing 720 studies published between 1997 and 2023, we develop a multi-level model that maps the antecedents of different actors (e.g., industries, organizations, individuals) to respond to or reshape institutional structures, the mechanisms they use, the moderators, and outcomes of their practices. Our findings emphasize the dynamic interplay between structure and agency across systemic, organizational, and individual levels, offering a comprehensive framework for future research. We highlight three key observations: first, while substantial research explores how institutions shape actors, more attention is needed to understand the reciprocal influences as actors are shaped by and reshape institutions over time. Second, individual-level dynamics remain significantly underexplored, with limited focus on resistance, demotivation, and failure—essential elements of the complexity of institutional processes. Finally, we identify a critical need to examine the unintended consequences of social and environmental efforts, revealing how these endeavors may undermine their goals, create new challenges, or generate unexpected solutions.