The application of open and closed systems theory to change in agricultural institutions

Contemporary agriculture in industrialized countries operates primarily within an institutional setting. Not only is farming itself becoming increasingly the business of institutions rather than of individual growers but also the highly complex infrastructure that is linked to agriculture is largely institutional in nature. In an environment of rapid technological development the way in which people working in these institutions respond to change is thus a matter of great importance for agriculture. This paper discusses the role of institutions in agriculture, specifically institutional innovation, control and rigidity. It develops a systems perspective of institutions based on systems theory for open and closed systems and uses this perspective to construct a model of institutional change. The driving force for change is technological information flow. This promotes both evolutionary and revolutionary change depending on whether the institutional system is in an equilibrium or far-from-equilibrium state. The model explains how institutions revitalize themselves in response to change by establishing a new order incorporating new emergent ways of doing things