Institutional and organisational myths: A process model of myth lifecycle

In this article, we explore the dynamic role of myths in organisational life, focusing on their creation, evolution and influence. We present a recursive process model that integrates two distinct perspectives from the organisational storytelling and institutional theory literatures, which have historically developed with minimal interaction. Our model outlines the lifecycle of two myth types – localised myths, rooted in specific contexts, and rational myths, embedded in institutional frameworks – and examines how they are created, disseminated and transformed. We highlight key mechanisms such as reenactment, rationalisation, and depersonalisation, which drive the transition from localised to rational myths. By bridging these perspectives, we provide a comprehensive framework for understanding how myths shape organisational culture, identity, and legitimacy, while influencing broader societal narratives. This contribution deepens the dialogue between storytelling and institutional theory. JEL Classification: M10