A cyclical model of institutional change

Abstract

Purpose Previous research on institutional change has largely ignored its cyclical nature. This paper aims to introduce a four‐phase cyclical model of long‐term institutional change. Design/methodology/approach The recurrent patterns of the model have been identified from previous technological revolutions and their accompanying surges of development. The model also incorporates generational theory as a driver of institutional change. Findings The model predicts that a multi‐year institutional crisis is currently underway that has important implications for practitioners. The paper also describes proposed solutions to the current crisis. Originality/value The model developed synthesizes disparate institutional theories to build a new explanation for long‐term economic development.