This paper introduces and provides comprehensive detail of a new theoretical framework termed 'Indigenous Institutional Theory'. In doing so, the paper discusses 'Western' and 'Indigenous' methodological practices and examines two existing theories that influence the newly developed framework; Indigenous Standpoint Theory (Nakata in Disciplining the savages, savaging the disciplines, Aboriginal Studies Press, Chicago, 2007) and Institutional Theory. Illustrating a conceptual framework for Indigenous inquiry, the framework acknowledges the Indigenous perspective, with the intention of offering a new lens in which the Indigenous experience within institutions can be interpreted and analysed. It is anticipated that the framework will be utilised in the future research by Indigenous scholars as a powerful explanatory tool when examining a variety of organisational phenomena in modern society. While the theoretical framework articulated in this paper has initially been designed for an Indigenous research project, the framework can be adapted and utilised when examining the standpoint of minority groups within Western institutions and addressing the diversity gap in leadership. As such, the paper is also relevant to organisational and leadership scholars investigating ways in which discriminatory (e.g. gendered and racialised) structures are created and culturally challenged within Western institutions.