Nested Institutions

Abstract

Nested institutions comprise one particular dimension of inter-organizational relations, which examines how organizations interact when they are embedded in other broader and encompassing IOs. The core idea is that the behavior of units in any subsystem is inexorably affected by the structure of the system within which the subsystem operates. The analysis of nested relations is a necessary precondition to shed light to otherwise seemingly sub-optimal behavior, providing a more holistic and comprehensive account that highlights the interconnectedness of multiple policy and institutional arenas. Nested connections will thrive in issue-areas and cooperation schemes in regions that feature inherent spillovers and interactions. Our contribution discusses two issues: first, concerns about order and organizational hierarchy that take the form of a problematic unclear demarcation of competence zones and, more importantly, a blurry ordering of jurisdictions in cases of overlap; second, the relations between encompassing and encompassed institutions.