An agency perspective on organizational responses to institutions: A problematizing review of emerging market firms’ responses

Abstract

There is an important debate on the role of institutional structures vs. organizational agency in shaping firms’ responses to institutions. The theorizing on this topic has largely been developed in stable institutional environments, and research in other contexts is required to further inform this debate. We undertake a problematizing literature review of emerging market (EM) firms’ responses to institutions to advance the conceptualization of organizational agency in EM firms’ responses and to expand the scope of existing research. First, we assess theoretical developments on organizational responses and propose a multidimensional framework distinguishing between organizational agency toward institutions and organizational agency toward the attainment of organizational strategic goals. Second, we critically examine empirical research discussing EM firms’ responses to institutions, applying our framework to assess how this research reports EM firms’ enactments of agency in their responses. We contribute to the organizational behavior literature and the institution-based view of strategy.