Institutions are vital to the sustainability of social-ecologicalsystems, balancing individual and group interests andcoordinating responses to change. Ecological decline andsocial conflict in many places, however, indicate that ourunderstanding and fostering of effective institutions for naturalresource management is still lacking. We assess theoreticaland methodological challenges facing positivist institutionalanalysis, focusing on natural resource governance according toOstrom’s social-ecological systems (SES) framework. Ratherthan adding more variables, progress requires a clearer, moreconsistent approach to selecting, defining and measuringinstitutional elements; stronger links between theory andempirical research; a greater focus on mechanisms andcausality; and the development and application of newmethods, including quantitative approaches. Strengthening theconnections between theory, models, and data suggestsseveral promising avenues for advancing institutional analysisthrough the study of relationships between institutionalstructure, process, function, context, and outcomes.