Institutional Theory is a framework that examines how institutions—defined as established laws, practices, and norms—shape the behavior of organizations and individuals. It emphasizes the role of social structures in influencing decision-making processes, highlighting how organizations conform to societal expectations to gain legitimacy and resources. The theory identifies three main pillars: regulative, normative, and cognitive elements. Regulative elements involve rules and laws, normative elements encompass values and norms, while cognitive elements pertain to shared beliefs and understandings. Together, these pillars help explain how institutions evolve and impact organizational practices over time.