Institutional shifts

We seek to capture the interruptions in an industry’s institutional evolution with the concept of institutional shift (cf. Hoffman, 1999), which we define as the moment when an industry’s existing rules for competition are changed as a consequence of new regulatory frameworks, technological standards, and business models (Battilana et al., 2009; Garud et al., 2002).

(Bohnsack et al. 2016: 17)

Bohnsack, R. Pinske, J. and Waelpoel. A. 2016. The institutional evolution process of the global solar industry: The role of public and private actors in creating institutional shifts. Environmental Innovation and Societal Transitions, Vol. 20, pp.16-32.

These guys argue that businesses do it via knowledge diffusion and governments do it via stimuli-based mechanisms:

While technological breakthroughs have been pertinent to the creation of the industry, our analysis shows that the industry’s institutional evolution has also been determined by institutional shifts. While companies seem to have employed a mechanism based on knowledge diffusion to create institutional shifts, governments used a stimuli-based mechanism instead. What differed in the process of creating institutional shifts was not only who the actors were that acted as institutional entrepreneurs, but also what role they played in this process.

(Bohnsack et al. 2016: 31)

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