Category Archives : Organization Theory

Introduction to Neo Institutionalism

Neo Institutionalism describes a revival of the interest for the study of institutions which occurred during the mid-1970s and is linked to a growing interest in the environment in which organizations are embedded that started in the 1960s, according to William Richard Scott, Institutions and Organizations (1995). Neo Institutionalism puts the emphasis on cognition. Neo-Institutional theory can be […]

Transaction Cost Economics

Transaction Cost Economics aims to explain why certain transactions are done within an organizations rather than on an open market and this fundamental question had been already raised in “The nature of the firm” by Coase (1937). Ronald Coase argued that organizations attempt to minimize transaction costs as these costs can be costly because of the cost […]