Institutional Legacies, Imprinting, and Founder Embeddedness: The Adoption of the Two-Tier Governance Model in German Foundations

Abstract Our study analyzes the adoption of the two-tier governance model in the German foundation sector, in which the one-tier model has traditionally been dominant. Drawing on data from 9,090 foundations established between 1870 and 2012, we show that foundations established in later periods are more likely to adopt a two-tier governance model. Moreover, since the German reunification, foundations established in East Germany have been more likely to adopt the two-tier model compared to their West German counterparts. We argue that this finding underscores the role of disrupted institutional legacies. In addition, we find that foundations initiated by organizations are more likely to adopt two-tier models than those established by individuals. The contribution of our study lies in integrating the role of institutional factors and founder agency to explain deviations from institutionalized blueprints. Our research provides insights into how institutional legacies and founder type influence these deviations, thereby helping to explain the evolution of organizational forms under changing institutional conditions.