This dissertation intends to better understand the implications of technology and innovation as grounded in the fundamental mechanisms of administrative organizations within the institutional environment. The environments of governmental organizations involve an increasing integration of artificial intelligence (AI). The integration of AI with autonomous decision-making capabilities may change administrative organizations at the fundamental level. Specifically, first, I revisited classic studies of organization and administration to achieve a more robust and scientific understanding of organizational principles in structurization and functioning. This understanding was then applied to the context of technological innovation, with a focus on highlighting the nuanced operational dynamics of organizational administration within the institutional environment of political controls. Second, with a focus on AI as a critical modern technological innovation, I further specified the organizational operational mechanisms of managerial functioning as well as the implications of discretion that AI can hold—maintaining cognitive impacts on human agents’ administrative behavior. In conjunction, I highlighted the institutional environment’s significant configurational implications for administrative organizations in terms of the mode of social control. Third, I further integrated the theoretical foundations with the perspectives of organizational and political economics. This approachhighlights the significance of organizational efficiency and responsibility for the operations of organizational administration that affect organizational employees’ willingness to use innovation in the context of AI intervention. These studies can help understand how humans will interact with AI throughout the administration of organizational operations, affecting performance and responsibility. Eventually, this dissertation aims to pave the road to better understand how the decisional and behavioral collaborations between humans and AI will unfold, sharing configurational effects with organizational and institutional environments.