What happens if formal norms are not supported by informal norms according to institutional theory?

What happens if formal norms are not supported by informal norms according to institutional theory?

• A. They will likely succeed
• B. They will not effectively work
• C. They require government intervention
• D. They generate public trust

Answer: (B)

In the context of institutional theory, when formal norms—such as laws, regulations, or official policies—are not supported by informal norms, which include social norms, values, and unwritten rules of behavior, they are unlikely to function effectively. The reason behind this stems from the relationship between formal and informal institutions in shaping behaviors and outcomes within a society. Formal norms lay down the structure and expectations for behavior, but without the backing of informal norms, which often reflect the cultural and social realities of the people, compliance can be reduced or even resisted. For example, if a formal law requiring honest behavior in business transactions exists, but the prevailing informal norm encourages otherwise, individuals and businesses may choose to disregard the law. This can lead to an environment where the formal rules are ineffective, as there may not be a social incentive or pressure to abide by them. In contrast, when formal norms are supported by strong informal norms, there is coherence in expectations, leading to better compliance and the overall effectiveness of the regulations in place. The synergy between these two types of norms is crucial for institutional success. The other options do not capture the essence of the relationship between formal and informal norms in institutional theory as accurately as the correct answer does.

In the context of institutional theory, when formal norms—such as laws, regulations, or official policies—are not supported by informal norms, which include social norms, values, and unwritten rules of behavior, they are unlikely to function effectively. The reason behind this stems from the relationship between formal and informal institutions in shaping behaviors and outcomes within a society.

Formal norms lay down the structure and expectations for behavior, but without the backing of informal norms, which often reflect the cultural and social realities of the people, compliance can be reduced or even resisted. For example, if a formal law requiring honest behavior in business transactions exists, but the prevailing informal norm encourages otherwise, individuals and businesses may choose to disregard the law. This can lead to an environment where the formal rules are ineffective, as there may not be a social incentive or pressure to abide by them.

In contrast, when formal norms are supported by strong informal norms, there is coherence in expectations, leading to better compliance and the overall effectiveness of the regulations in place. The synergy between these two types of norms is crucial for institutional success.

The other options do not capture the essence of the relationship between formal and informal norms in institutional theory as accurately as the correct answer does.