The effect of policy and institutional entrepreneurship on the institutionalization of policy ideas

Dr. Mehmet Kerem Coban
Prof. Caner Bakir
Mr. Sinan Akgunay

Public administration, public policy, and political economy literatures are mainly preoccupied
with the effects of institutions rather than the process of institutionalization, which largely
remains a black box. This article contributes to our understanding of the processes underlying
the institutionalization of policy ideas in the public sector that have not been investigated
adequately. Based on an exploratory case study of the introduction and institutionalization of
macroprudential policies in Turkey, this article draws on insights from public policy and
institutional research and theory to examine the process of institutionalization of
macroprudential policy. While we show a contentious institutionalization process, we argue
that policy and institutional entrepreneurship processes are inextricably intertwined and
fundamental to institutionalization: the institutionalization of policy ideas occurs as the
combination of policy and institutional entrepreneurship induce inter-bureaucratic
collaboration through ongoing discursive interactions that promote shared meanings among
key public sector actors to attain collective ends.
Keywords: government policy and regulation, policy objectives; policy designs and
consistency, political economy, Central Banks and their policies, financial institutions and