Interplay of institutional and cultural theories of organization

In this paper, similarities and differences between the institutional theory of organization and organizational culture theory are analysed, and how these theories complement each other is highlighted. This study posits that both the institutional and cultural theories of organizations have the same research subject and that they approach it from the same research paradigm. The level of analysis distinguishes the two, and therefore, an interaction between the institutional and cultural theories of organizations is useful. Organizational culture theory supports the institutional theory in explaining the underlying factors and the forms of the implementation of institutional pattern in organizations. The institutional theory of organizations supports the organizational culture theory to expand its findings regarding the sources of organizational culture.