Different while being similar: The dual institutional process and differential organizational status

Abstract Connecting the neoinstitutional theory with Bourdieu's field theory, we develop a framework on the dual institutional process of integration and differentiation in a field. While the neoinstitutional theory has focused on similar organizational structures, we shift the research focus to offer an institutional explanation of differential organizational status. Drawing insights from Bourdieu's theory and key concepts, we highlight that the very institutional mechanisms causing isomorphism—regulative forces, normative pressures, and cognitive processes—also generate systematic status differentiation among organizations via their different levels of capital, homologous structures, and various habitus in a field. Our extended framework has theoretical significance in advancing the neoinstitutional theory, the research of status in organizational and economic sociology, and the Bourdieusian perspective. By theorizing status differentiation among organizations, it also adds an important dimension to enrich our understanding of multilevel status and social hierarchies.