Characteristics of the budget institutionalization process
A case study of budgeting practices in a car dealership
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The incorporation of management practices often comes up against issues related to the lack of rules and the reproduction of routines. Institutional theory helps to explain the factors that need to be present in what involves habits, routines and institutions. Rules that are formalized and reproduced in the form of routines become habits that over time become institutionalized. However, external and internal factors can influence this process, both positively and negatively. External pressures, such as changes in the market due to technology or even changes in legislation, are factors that lea...
The incorporation of management practices often comes up against issues related to the lack of rules and the reproduction of routines. Institutional theory helps to explain the factors that need to be present in what involves habits, routines and institutions. Rules that are formalized and reproduced in the form of routines become habits that over time become institutionalized. However, external and internal factors can influence this process, both positively and negatively. External pressures, such as changes in the market due to technology or even changes in legislation, are factors that lead to innovation. However, innovation can often be the result of an evolutionary process, where an organization tries to keep up with what others are using as best management practices and tries to implement them in their organization. Therefore, the analysis of these factors is important in order to understand the characteristics of the process of institutionalizing management tools such as the budget, which are often started and after a period of time, are abandoned by the organization because they are not completely institutionalized.
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