This research evaluates the institutionalization of the Souk al Manakh in the State of Kuwait. The Souk al Manakh is an unofficial securities, or stock, market. Kuwait also has an official stock market, which is specifically permitted by law.1 The trading in the shares of in the official stock market is limited to the shares of those Kuwaiti organized companies which have published their first annual report of operations. In the Souk al Manakh, shares of companies organized by Kuwaitis in other Gulf States (to avoid the strict Kuwaiti laws) are also traded. Further, trading in the Souk al Manakh is not restricted to the shares of those companies which have published their first annual report of operations.
Institutionalization, as used in this research, refers to the extent to which an organization voluntary or public sec tor has become "valued in its environment beyond its func tional instrumental purpose."2 The evaluation of institu tionalization is performed within the framework of the Institu tional Quotient (IQ) Index. This evaluative framework provides
1H. T. Azzam, Souk al Manakh: Stock Market Crisis in Kuwait (Manama, Bahrain: United Gulf Bank, E.C., 1983), 1.
2P. Selznick, Leadership in Administration (Evanston, Illinois: Row, Peterson Publishing Co., Inc., 1957), 54.
2two scores: (1) a Q score, which is a cumulative value of the points awarded to an organization in each of the six elements of the evaluative framework; and (2) an IQ Index number, which is derived by dividing the Q score by a mean score for other institutions of a similar age to the organization being evaluated.3
The six elements of the evaluative framework are (1) legal legitimacy, (2) leadership charisma, (3) program autonomy and success, (4) resources and resource autonomy, (5) valuedness both internal and external, and (6) longevity in function (measured in years).4 Evaluations of the Souk al Manakh are made at three time point...