I\m writing a paper based on a 2 year research project where institutional entrepreneurs were involved initiating and implementing recycled water schemes in Australia and I haven't seemed to be able to find anyone else writing on this phenomena.
I'm not sure if you have seen research in institutional bricolage and water usage . Not exactly the same, but similar. Bricolage has nice links to "making do, through using resources on hand, to create novel solutions to challenges and opportunities" including distressed "cheap" resources (see Baker & Nelson, 2005). So this notion of reuse, recycling fits nicely with the theory at both levels: the firm level and the institutional level. good luck. :)
See:
Baker, T., & Nelson, R. E. (2005). Creating something from nothing: Resource construction through entrepreneurial bricolage. Administrative science quarterly, 50(3), 329-366.
Cleaver, F. (2002). Reinventing institutions: Bricolage and the social embeddedness of natural resource management. The European Journal of Development Research, 14(2), 11-30.
Merrey, D. J., & Cook, S. (2012). Fostering Institutional Creativity at Multiple Levels: Towards Facilitated Institutional Bricolage. Water Alternatives, 5(1).
Hegger, D.L.T., Van Vliet, J., Van Vliet, B.J.M., 2007. Niche management and its contribution to regime change: The case of innovation in sanitation. Technology Analysis and Strategic Management 19, 729-746.
and thinking about it a bit more, though not using the same concept of 'institutional entrepreneurship' and in a different area (agriculture), we looked at how agency of individuals contributes to realizing radical innovations. see https://www.researchgate.net/publication/223092534_Adaptive_management_in_agricultural_innovation_systems_The_interactions_between_innovation_networks_and_their_environment?ev=prf_pub
maybe this paper can be interesting to compare your findings
Article Adaptive management in agricultural innovation systems: The ...
Laurens thanks for these articles, I'm quite familiar with Hegger et al's paper, actually one of the co-authors examined my PhD thesis! I look forward to reading your paper on agricultural innovation systems