Launching professional services automation: Institutional entrepreneurship for information technology innovations

Why do some information technology innovations come to be adopted widely while others do not? One promising research stream has begun to investigate how institutional factors shape the diffusion of IT innovations. Here we examine how these institutional factors themselves are shaped. Specifically, we explore how interested actors termed institutional entrepreneurs develop institutional arrangements to launch an IT innovation toward widespread adoption. Undertaking a contemporary case study of a new class of enterprise software, professional services automation (PSA), we found that to launch PSA, institutional entrepreneurs sought to mobilize an organizational community by developing and recognizing leaders and facilitating members’ focus on PSA. They further struggled to legitimate PSA by developing a coherent organizing vision that incorporated compelling success stories. We tie these findings together in a model that usefully shifts the focus of IT innovation research from assessing institutional effects to understanding institution-building. This new focus suggests an alternative IT diffusion theory with several practical implications.