Conclusion
Institutions as explained by the Institutional Theory are important elements in the understanding of the Theory of Innovation. In this theory, institutions are social expressions and are seen as social constructs which are adaptive as well as original in a process that seeks equilibrium when faced with social pressures. An institution is a group of practices that defines the behavior of a group and possesses meaning that gives it legitimacy. Thus institutions can be envisaged as signposts in the Theory of Innovation.
In addition to improved organizational performance, innovations seek to incorporate values as organisms adapting to social pressure. The theoretical foundations of institutional theory converge in terms of the significance of institutions to the Theory of Innovation, suggesting that with the increase of interaction between organizations within an organizational field, they will reflect more and more rules that are based on institutionalization and legitimacy.
Thus, in Institutional Theory, values, beliefs, and meanings support institutions through shared interpretations, in which reality is subjective and not objective, in contrast to the Theory of Innovation which recognizes the need to adopt isomorphic forms to achieve legitimacy, but has a more functionalistic, practical and deterministic point of view. In Innovation Theory, the reading of the environment is more objective, and recognizes forces and pressures and deals with them as well as isomorphic patterns, analyzing the legitimacy obtained, but it does not give the understanding of the socially constructed reality the same emphasis that it has in Institutional Theory.
