This study examines the theoretical aspects and empirical evidence related to institutional theory and organizational behaviour. It discusses institutional theory, institutional pressures, norms, values, expectations, and institutional mechanisms that influence organizational decision-making, performance, and culture. The study focuses on how institutional theory shapes organizational behaviour toward achieving organizational aims and objectives. It reveals the dynamic nature of institutional influences and highlights the need for organizations to adapt to changing regulatory frameworks and societal expectations. The study provides insight for practitioners and researchers seeking to understand and address institutional problems.
