Institutional analysis
Encyclopedia
Institutional analysis is that part of the social sciences
which studies how institution
s—i.e., structures
and mechanisms of social order and cooperation governing the behavior of two or more individuals—behave and function according to both empirical rules (informal rules-in-use and norms
) and also theoretical rules (formal rules and law
). This field deals with how individuals and groups construct institutions, how institutions function in practice, and the effects of institutions on society.
Since institutional analysis is focused on the systematic study of people's collective behaviour in institutions, its ability to explain major political, social
, or historical events is sometimes contrasted with the use of conspiracy theory
to explain such events, since the latter focuses on explaining such events by a secret
, and often deceptive
, plot by a covert coalition
of small numbers of powerful or influential individuals rather than by the systematic, regular, publicly documented behaviour of the institutions.
One meaning of institutional analysis refers to actual formal institutions. In the biomedical sciences, “institutional analysis” often refers to analyzing data coming from concrete institutions such as health authorities, hospitals networks, etc. Similarly, in the fields of education and public administration and governance studies, the term usually refers to how school boards and governmental agencies implement policies.
Another meaning refers to institutions as ways of thinking that have a direct impact on behaviors. Under this approach, there are several variations and usages of institutional analysis. In economics, it is used to explain why economic behaviors do not conform to the theory of supply and demand. This is a relatively old school of thought that has its roots in the work of early 20th-century economists like Pareto
. One of the most prominent contemporary figures of institutional analysis in economics is Douglass North
, who received the Nobel Prize for Economics in 1993.
Sociology has also used institutional analysis since its inception to study how social institutions such as the laws or the family evolve over time. The foundational author of this approach is Émile Durkheim
, also founder of sociology as a discipline.
Since the 1980s, however, there are cross-pollinations between the sociological and economic traditions in institutional analysis. A new focus is to explain how organizations and individuals within organizations make economic and managerial decisions, particularly by investigating the non-rational, non-economic, and non-psychological factors. This movement produced what is known as the New Institutional Analysis. The neoinstitutional approach has several variants. One of them tries to improve economic models based on the theory of public choice
, and one of its applications is known as the institutional analysis and development (IAD) framework. Another variant is influenced by organizational sociology and seeks to integrate Max Weber
’s work on bureaucratic mentality.
There is also a French school of institutional analysis influenced by the Durkheimian analysis of social institutions, and the anthropological school of thought established by Marcel Mauss
. This approach to institutional analysis is also influenced by post-structuralist thinkers such as Cornelius Castoriadis
and Michel Foucault
. The main thrust of this approach is the identification of hidden forms of power that institute behaviors and organizational procedures.
Social sciences
Social science is the field of study concerned with society. "Social science" is commonly used as an umbrella term to refer to a plurality of fields outside of the natural sciences usually exclusive of the administrative or managerial sciences...
which studies how institution
Institution
An institution is any structure or mechanism of social order and cooperation governing the behavior of a set of individuals within a given human community...
s—i.e., structures
Social structure
Social structure is a term used in the social sciences to refer to patterned social arrangements in society that are both emergent from and determinant of the actions of the individuals. The usage of the term "social structure" has changed over time and may reflect the various levels of analysis...
and mechanisms of social order and cooperation governing the behavior of two or more individuals—behave and function according to both empirical rules (informal rules-in-use and norms
Norm (sociology)
Social norms are the accepted behaviors within a society or group. This sociological and social psychological term has been defined as "the rules that a group uses for appropriate and inappropriate values, beliefs, attitudes and behaviors. These rules may be explicit or implicit...
) and also theoretical rules (formal rules and law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
). This field deals with how individuals and groups construct institutions, how institutions function in practice, and the effects of institutions on society.
Since institutional analysis is focused on the systematic study of people's collective behaviour in institutions, its ability to explain major political, social
Social
The term social refers to a characteristic of living organisms...
, or historical events is sometimes contrasted with the use of conspiracy theory
Conspiracy theory
A conspiracy theory explains an event as being the result of an alleged plot by a covert group or organization or, more broadly, the idea that important political, social or economic events are the products of secret plots that are largely unknown to the general public.-Usage:The term "conspiracy...
to explain such events, since the latter focuses on explaining such events by a secret
Secrecy
Secrecy is the practice of hiding information from certain individuals or groups, perhaps while sharing it with other individuals...
, and often deceptive
Deception
Deception, beguilement, deceit, bluff, mystification, bad faith, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth . Deception can involve dissimulation, propaganda, and sleight of hand. It can employ distraction, camouflage or concealment...
, plot by a covert coalition
Coalition
A coalition is a pact or treaty among individuals or groups, during which they cooperate in joint action, each in their own self-interest, joining forces together for a common cause. This alliance may be temporary or a matter of convenience. A coalition thus differs from a more formal covenant...
of small numbers of powerful or influential individuals rather than by the systematic, regular, publicly documented behaviour of the institutions.
Use in various disciplines
The term institutional analysis is used by several academic disciplines, and has several meanings and connotations.One meaning of institutional analysis refers to actual formal institutions. In the biomedical sciences, “institutional analysis” often refers to analyzing data coming from concrete institutions such as health authorities, hospitals networks, etc. Similarly, in the fields of education and public administration and governance studies, the term usually refers to how school boards and governmental agencies implement policies.
Another meaning refers to institutions as ways of thinking that have a direct impact on behaviors. Under this approach, there are several variations and usages of institutional analysis. In economics, it is used to explain why economic behaviors do not conform to the theory of supply and demand. This is a relatively old school of thought that has its roots in the work of early 20th-century economists like Pareto
Vilfredo Pareto
Vilfredo Federico Damaso Pareto , born Wilfried Fritz Pareto, was an Italian engineer, sociologist, economist, political scientist and philosopher. He made several important contributions to economics, particularly in the study of income distribution and in the analysis of individuals' choices....
. One of the most prominent contemporary figures of institutional analysis in economics is Douglass North
Douglass North
Douglass Cecil North is an American economist known for his work in economic history. He is the co-recipient of the 1993 Nobel Memorial Prize in Economic Sciences...
, who received the Nobel Prize for Economics in 1993.
Sociology has also used institutional analysis since its inception to study how social institutions such as the laws or the family evolve over time. The foundational author of this approach is Émile Durkheim
Émile Durkheim
David Émile Durkheim was a French sociologist. He formally established the academic discipline and, with Karl Marx and Max Weber, is commonly cited as the principal architect of modern social science and father of sociology.Much of Durkheim's work was concerned with how societies could maintain...
, also founder of sociology as a discipline.
Since the 1980s, however, there are cross-pollinations between the sociological and economic traditions in institutional analysis. A new focus is to explain how organizations and individuals within organizations make economic and managerial decisions, particularly by investigating the non-rational, non-economic, and non-psychological factors. This movement produced what is known as the New Institutional Analysis. The neoinstitutional approach has several variants. One of them tries to improve economic models based on the theory of public choice
Public choice theory
In economics, public choice theory is the use of modern economic tools to study problems that traditionally are in the province of political science...
, and one of its applications is known as the institutional analysis and development (IAD) framework. Another variant is influenced by organizational sociology and seeks to integrate Max Weber
Max Weber
Karl Emil Maximilian "Max" Weber was a German sociologist and political economist who profoundly influenced social theory, social research, and the discipline of sociology itself...
’s work on bureaucratic mentality.
There is also a French school of institutional analysis influenced by the Durkheimian analysis of social institutions, and the anthropological school of thought established by Marcel Mauss
Marcel Mauss
Marcel Mauss was a French sociologist. The nephew of Émile Durkheim, Mauss' academic work traversed the boundaries between sociology and anthropology...
. This approach to institutional analysis is also influenced by post-structuralist thinkers such as Cornelius Castoriadis
Cornelius Castoriadis
Cornelius Castoriadis was a Greek philosopher, social critic, economist, psychoanalyst, author of The Imaginary Institution of Society, and co-founder of the Socialisme ou Barbarie group.-Early life in Athens:...
and Michel Foucault
Michel Foucault
Michel Foucault , born Paul-Michel Foucault , was a French philosopher, social theorist and historian of ideas...
. The main thrust of this approach is the identification of hidden forms of power that institute behaviors and organizational procedures.