George, E., Chattopadhyay, P., Sitkin, S. B., & Barden, J. 2006. Cognitive Underpinnings of Institutional Persistence and Change: A Framing Perspective. Academy of Management Review, 31(2): 347-385.
Abstract: This article presents the results of an examination of how key decision makers’ interpretations of environmental pressures are translated into organizational actions that can potentially change institutions or help to maintain them. The authors integrate the predictions of prospect theory, the threat-rigidity hypothesis, and institutional theory to suggest how patterns of institutional persistence and change depend on whether decision makers view environmental shifts as potential opportunities for or threats to gaining legitimacy. A suggestion is made that, in the event that decision makers face ambiguity in their reading of the environment, they initiate symbolic actions that simultaneously accommodate the predictions of prospect theory and the threat-rigidity hypothesis.