This paper evaluates the influence of the institutional context on the dynamics of institutional change and the possibilities for human agency in this process.
A comparison of the emergence of the temporary work agency industry in five countries is used to illustrate the influence of three elements of the institutional context: high/low pressure field emergence, societal confidence, and power and discretion of the emerging industry.
The analysis reveals how these three elements affect the dynamics of new field development. It shows the interaction between institutionalising and de‐institutionalising pressures and the dialectical nature of the process when comparing the developments over time between different national (institutional) contexts.
Propositions for further research are formulated. Combining the effects of the three situational variables three models of industry institutionalization are established: autonomous development, constrained development and societalisation.
The findings illustrate the situated condition of human and organizational agency in processes of institutional entrepreneurship. Our analysis also shows how early externally constraining effects slow down early institutionalisation of a new organizational field, but at the same time trigger processes of institutional structuration that strengthen the institutionalising role of the industry in the long run.
The comparative analysis helps to see how the dynamics of institutional renewal are affected by institutional context and highlights the situated nature of effective human agency.
