Chapter 1 Organizing beyond management and market
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In this chapter, I have argued that neither management nor market forces suffice as explanations for why organizations develop as they do. To understand this development, we must look beyond the obvious, beyond the observable explanations, and try to understand the implicit mechanisms that drive both individuals and individual organizations in a certain direction. This book presents the argument that an understanding of the institutional environment is essential in this respect. It may not explain everything, but it can provide a valuable point of departure. This means that we need to know what makes up the institutional environment. In this chapter, a model that specified direct and indirect variables in the environment was developed.