Differentiated Institutionalization: How Is a Policy Innovation Institutionalized Within the Bureaucratic Organization?

The efficacy of policy innovation largely rests on its internalization into the institutionalized practices of bureaucratic organizations. Existing research has explored the concept, influencing factors, and process of innovation institutionalization, but thus far, studies have not yet opened the internal “black box” of innovations going into organizations. This study constructs an analytical framework for the institutionalization of a policy innovation based on inhabited institutionalism. Then, this framework is applied to the case study of the Establishing Legal Counsel Systems (ELCS) in CL County, China. The findings show that policy innovation is institutionalized through a pattern of “differentiated institutionalization,” which is comprised of both temporal and structural dimensions. Temporally, innovation institutionalization unfolds through four stages: innovation entry, initial institutionalization, innovation routinization, and continuous evolution. Structurally, the institutionalization of policy innovation is characterized by sequential construction at the management level and variegated coupling at the practice level. These processes result in dynamic quasi‐institutionalization. This study establishes a process perspective for the institutionalization of a policy innovation and attempts to dissolve the tension and boundaries between innovation and institutionalization.