Rational choice theory refers to a set of guidelines that help understand economic and social behaviour. The theory originated in the eighteenth century and can be traced back to the political economist and philosopher Adam Smith. The theory postulates that an individual will perform a cost–benefit analysis to determine whether an option is right for them. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand.
An institution is a humanly devised structure of rules and poster norms that shape and constrain social behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions and norms are all examples of institutions. Institutions vary in their level of formality and informality.
Neo institutionalism is an approach to the study of institutions that focuses on the constraining and enabling effects of formal and informal rules on the behavior of individuals and groups. New institutionalism traditionally encompasses three major strands: sociological institutionalism, rational choice institutionalism, and historical institutionalism. New institutionalism originated in work by sociologist John Meyer published in 1977.
In the social sciences, social structure is the aggregate of patterned social arrangements in society that are both emergent from and determinant of the actions of individuals. Likewise, society is believed to be grouped into structurally related groups or sets of roles, with different functions, meanings, or purposes. Examples of social structure include family, religion, law, economy, and class. It contrasts with "social system", which refers to the parent structure in which these various structures are embedded. Thus, social structures significantly influence larger systems, such as economic systems, legal systems, political systems, cultural systems, etc. Social structure can also be said to be the framework upon which a society is established. It determines the norms and patterns of relations between the various institutions of the society.
In sociology and organizational studies, institutional theory is a theory on the deeper and more resilient aspects of social structure. It considers the processes by which structures, including schemes, rules, norms, and routines, become established as authoritative guidelines for social behavior. Different components of institutional theory explain how these elements are created, diffused, adopted, and adapted over space and time; and how they fall into decline and disuse.
Paul Joseph DiMaggio is an American educator, and professor of sociology at New York University since 2015. Previously, he was a professor of sociology at Princeton University.
Laurent Thévenot is a French sociologist Professor at the Ecole des Hautes Etudes en Sciences Sociales (Paris).
Social rule system theory is an attempt to formally approach different kinds of social rule systems in a unified manner. Social rules systems include institutions such as norms, laws, regulations, taboos, customs, and a variety of related concepts and are important in the social sciences and humanities. Social rule system theory is fundamentally an institutionalist approach to the social sciences, both in its placing primacy on institutions and in its use of sets of rules to define concepts in social theory.
Network governance is "interfirm coordination that is characterized by organic or informal social system, in contrast to bureaucratic structures within firms and formal relationships between them. The concepts of privatization, public private partnership, and contracting are defined in this context." Network governance constitutes a "distinct form of coordinating economic activity" which contrasts and competes with markets and hierarchies.
Walter W. Powell, born August 15, 1951, is a contemporary American sociologist. Powell is Professor of Education, Sociology, Organizational Behavior, Management Science and Engineering, and Communication at Stanford University and the Stanford Graduate School of Education since 1999 and is known for his contributions to organizational theory, in particular to the new institutionalism and network theory. Since 2000, he has been an external faculty member of the Santa Fe Institute.
John Wilfred Meyer is an American sociologist and emeritus professor at Stanford University. Beginning in the 1970s and continuing to the present day, Meyer has contributed fundamental ideas to the field of sociology, especially in the areas of education, organizations, and global and transnational sociology. He is best known for the development of the neo-institutional perspective on globalization, known as world society or World Polity Theory. In 2015, he became the recipient of American Sociological Association's highest honor - W.E.B. Du Bois Career of Distinguished Scholarship Award.
Organizational field is defined as "sets of organizations that, in the aggregate, constitute a recognized area of institutional life; key suppliers, resource and product consumers, regulatory agencies, and other organizations that produce similar services or products".
Rational choice institutionalism (RCI) is a theoretical approach to the study of institutions arguing that actors use institutions to maximize their utility, and that institutions affect rational individual behavior. Rational choice institutionalism arose initially from the study of congressional behaviour in the U.S. in the late 1970s. Influential early RCI scholarship was done by political economists at California Institute of Technology, University of Rochester, and Washington University. It employs analytical tools borrowed from neo-classical economics to explain how institutions are created, the behaviour of political actors within it, and the outcome of strategic interaction.
Sociological institutionalism is a form of new institutionalism that concerns "the way in which institutions create meaning for individuals." Its explanations are constructivist in nature. According to Ronald L. Jepperson and John W. Meyer, Sociological institutionalism
treats the “actorhood” of modern individuals and organizations as itself constructed out of cultural materials – and treats contemporary institutional systems as working principally by creating and legitimating agentic actors with appropriate perspectives, motives, and agendas. The scholars who have developed this perspective have been less inclined to emphasize actors’ use of institutions and more inclined to envision institutional forces as producing and using actors. By focusing on the evolving construction and reconstruction of the actors of modern society, institutionalists can better explain the dramatic social changes of the contemporary period – why these changes cut across social contexts and functional settings, and why they often become worldwide in character.
The sociological theory of diffusion is the study of the diffusion of innovations throughout social groups and organizations. The topic has seen rapid growth since the 1990s, reflecting curiosity about the process of social change and "fueled by interest in institutional arguments and in network and dynamic analysis." The theory uses a case study of the growth of business computing to explain different mechanisms of diffusion.
World polity theory is an analytical framework for interpreting global relations, structures, and practices. The theory views the world system as a social system with a cultural framework called world polity, which encompasses and influences the actors under it. According to the theory, world polity provides a set of cultural norms and directions that actors of the world society follow in dealing with problems and general procedures.
Cultural evolution is an evolutionary theory of social change. It follows from the definition of culture as "information capable of affecting individuals' behavior that they acquire from other members of their species through teaching, imitation and other forms of social transmission". Cultural evolution is the change of this information over time.
Mark Sheldon Mizruchi is the Robert Cooley Angell Collegiate Professor of Sociology and Barger Family Professor of Organizational Studies at the University of Michigan. He also holds an appointment as Professor of Management and Organizations at the University of Michigan Ross School of Business. His research has focused on the political activity of the U.S. corporate elite over the 20th and 21st centuries. He was influential in the development of social network analysis, and has published research in the fields of organizational theory, economic sociology, and political sociology.
The logic of appropriateness is a theoretical perspective to explain human decision-making. It proposes that decisions and behavior follow from rules of appropriate behavior for a given role or identity. These rules are institutionalized in social practices and sustained over time through learning. People adhere to them because they see them as natural, rightful, expected, and legitimate. In other words, the logic of appropriateness assumes that actors decide on the basis of what social norms deem right rather than what cost-benefit calculations suggest best. The term was coined by organization theorists James G. March and Johan Olsen. They presented the argument in two prominent articles published by the journals Governance in 1996 and International Organization in 1998.
Rational choice is a prominent framework in international relations scholarship. Rational choice is not a substantive theory of international politics, but rather a methodological approach that focuses on certain types of social explanation for phenomena. In that sense, it is similar to constructivism, and differs from liberalism and realism, which are substantive theories of world politics. Rationalist analyses have been used to substantiate realist theories, as well as liberal theories of international relations.
