THE PROBLEM OF INSTITUTIONALIZATION OF ORGANIZATIONAL FORMS OF ECONOMIC ACTIONS: LEGITIMACY AND EFFECTIVENESS

The problem of choosing and forming forms of organization through the oppositions of the pair of concepts “legitimacy-effectiveness” is considered. It is noted that institutionalization, which expands the use of unconditional/rational rules defining the formal structure of an organization, increases the gap between structure and effective activity. The institutional theory asserts that the institutional external environment forces an organization to seek reasons for its actions and to monitor the strengthening of legitimacy — not to contradict the prevailing beliefs, rules, norms and expectations of the authorities. The methods used to mitigate these contradictions (new goals, isolation, preservation of reputation) are considered.