How do sociological institutionalists connect institutional legitimacy to organizational behavior?

Sociological institutionalists, a key branch of neoinstitutionalism, argue that organizational behavior is profoundly shaped by the need to gain legitimacy within a broader social environment.1

Rather than acting solely based on efficiency or internal goals, organizations often adopt structures and practices that are widely accepted, externally validated, and collectively expected by their peers and society. This process leads to organizational homogeneity, as firms conform to institutionalized "scripts" or "natural models" to ensure their survival and secure access to resources.1

Key aspects of this connection include:

• Conformity for Legitimacy: Organizations increase their survival prospects by aligning with the normative environments of their fields. When an organization adopts structures that are perceived as legitimate, it gains social approval; conversely, operating in ways deemed illegitimate can result in negative performance.1
• Institutionalized Scripts: Sociological institutionalists suggest that behavior is often guided by taken-for-granted rules and codes rather than conscious norms or values. Individuals and organizations follow these scripts out of habit, often prioritizing conformity to institutional myths over technical efficiency.1