Herman Aksom

In this paper we aim to contribute to the recent debate on non-empirical theory confirmation by analyzing why scientists accept and trust their theories in the absence of clear empirical verification in social sciences. Given that the philosophy of social sciences traditionally deals mainly with economics and sociology, organization theory promises a new area for addressing a wide range of key questions of the modern philosophy of science and, in particular, to shed a light on the puzzling question of non-empirical theory assessment, acceptance, corroboration and development. Although institutional theory of organizations cannot be directly tested and evaluated via empirical data, this theory nevertheless became a dominant theory of organization-environment relations and most organizational researchers routinely use it as a standard theoretical framework for making sense of empirical findings. We analyze the trajectory of institutional theory development and proliferation and argue that it enjoys its current status of the standard theory of organizational sociology because (1) it is flexible enough to account for most organizational processes and phenomena; (2) it has suppressed existing alternative theories that are less flexible; (3) because scientists do not tend to look for alternatives for once winning theory and (4) due to the dysfunctional requirement to “develop theory” in top journals in organization and management studies. Finally, we argue that “a too-much-plasticity effect”, has a negative impact on institutional theory in the long run. It is explained why, despite the dominant position in organizational research, institutional studies cannot be regarded as a normal science while the progress of this theoretical problem is rather an illusory effect then a growth of knowledge.

In this paper we aim to contribute to the recent debate on non-empirical theory confirmation by analyzing why scientists accept and trust their theories in the absence of clear empirical verification in social sciences. Given that the philosophy of social sciences traditionally deals mainly with economics and sociology, organization theory promises a new area for addressing a wide range of key questions of the modern philosophy of science and, in particular, to shed a light on the puzzling question of non-empirical theory assessment, acceptance, corroboration and development. Although institutional theory of organizations cannot be directly tested and evaluated via empirical data, this theory nevertheless became a dominant theory of organization-environment relations and most organizational researchers routinely use it as a standard theoretical framework for making sense of empirical findings. We analyze the trajectory of institutional theory development and proliferation and argue that it enjoys its current status of the standard theory of organizational sociology because (1) it is flexible enough to account for most organizational processes and phenomena; (2) it has suppressed existing alternative theories that are less flexible; (3) because scientists do not tend to look for alternatives for once winning theory and (4) due to the dysfunctional requirement to “develop theory” in top journals in organization and management studies. Finally, we argue that “a too-much-plasticity effect”, has a negative impact on institutional theory in the long run. It is explained why, despite the dominant position in organizational research, institutional studies cannot be regarded as a normal science while the progress of this theoretical problem is rather an illusory effect then a growth of knowledge.

Organizational research constitutes a differentiated, complex and fragmented field with multiple contradicting and incommensurable theories that make fundamentally different claims about the social and organizational reality. In contrast to natural sciences, the progress in this field can’t be attributed to the principle of truthlikeness where theories compete against each other and only best theories survive and prove they are closer to the truth and thus demonstrate scientific knowledge accumulation. We defend the structural realist view on the nature of organizational theories in order to demonstrate that despite the multiplicity of isolated and competing explanations of organization-environment relations these theories are still logically compatible and mutually consistent which, in turn, assures theoretical progress in the field. Although postulating different and incompatible ontologies, three most successful organization-environments theories, namely, contingency theory, new institutionalism and population ecology share the same explanations of the relations between organizations and environments at the structural level. Without this principle one would say that what occurs in the field of organization theory is a change rather than a progress.

It is argued that scientific progress occurs not with the cumulative growth of knowledge or when theories get closer to the truth but with discovering new domains and new theories that fit these domains. This horizontal view on the direction of scientific progress allows avoiding traditional objections posed by the incommensurability thesis and pessimistic induction, namely, that radical theory changes leave no room for progress. According to this perspective, the discovery of quantum mechanics as a new field of inquiry is a progress in itself, since this discovery had opened up a new distinctive domain of physics and a new theory that fits this domain. While some perspectives on scientific progress maintain that there is a need for correspondence between competing theories, we shift the emphasis from correspondence towards the discovery of new domains and new theories that apply to those domains. This approach allows overcoming the problem of theoretical discontinuity after scientific revolutions. Correspondence between theories is an important but not necessary condition for progress, while the falsifiability of theories as a means of demonstrating the boundaries of old theories and domains and beginnings of the new domains and theories is a necessary condition.