Abstract
In recent years, institutional theories have discussed the paradox of embedded agencies. This paradox is how agencies embedded in an existent institution can construct a new one. To overcome this paradox, this paper focuses on an institutional change based on learning by expanding. We suggest three possible sources of an institutional change. First, actions of maintaining an institution may cause an institutional change, and actors who are in an institution may create a new institution. Second, actors have to gain legitimacy to constitute a new institution. Third, it is important for an institutional change to incorporate the existing institution into a new institution (learning by expanding).
