John Molson School of Business, Concordia U., Canada
This paper develops a micro-foundational theory of institutional deviance, defined as practices that contravene established institutional expectations. We theorize how minor deviations in institutional practices emerge, evade custodial oversight, gain gradual acceptance, and potentially drive institutional transformation or decline. Our framework offers three key contributions. First, we conceptualize deviance as an inevitable, often imperceptible force within everyday social interactions, necessitating ongoing custodial work to maintain institutional integrity. Second, we introduce a dialectical framework that highlights the interconnectedness of micro-processes underpinning institutional stability and change, challenging their traditional treatment as mutually exclusive. Finally, we provide a novel theoretical account of institutional entropy, demonstrating how the cumulative impact of micro-level deviations exerts entropic pressure toward institutional decay and transformation.
