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Institutionalization in organizations refers to the process by which certain practices, norms, and structures become established and accepted as standard within an organization over time. This often leads to the creation of routines and policies that shape behavior and decision-making, reinforcing stability and predictability. As a result, institutionalized practices can enhance legitimacy and support the organization's identity, but they may also hinder adaptability and innovation if they become too rigid. Ultimately, effective institutionalization balances maintaining core values and practices while remaining responsive to change.

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