Abstract
Purpose
This paper seeks to provide insights into the current global financial crisis from an institutional theory perspective.
Design/methodology/approach
The paper presents the development of key concepts using institutional theory, grounded in a discussion of the context of the current global financial crisis.
Findings
The interplay of financial industry organizations and formal and informal institutions is key to understanding the creation of the crisis.
Research limitations/implications
The treatment is brief but serves to provoke further research on the global financial crisis through applying and extending new institutional theory.
Practical implications
Fundamental aspects of the crisis need to be understood with respect to the organizational‐institutional interplay involving the financial industry. This would help to reveal the general pattern of such crises and also point towards what needs to be taken into account for potential solutions.
Originality/value
The paper has value for researchers as it opens up a discussion of the current crisis from an institutional theory perspective. Fresh concepts introduced here could be extended further and inform institutional theory in general. The paper has value for policy makers and practitioners in helping them understand the fundamentals of the organizational‐institutional interplay underlying the current crisis.