Institutional theory has long been criticized for black-boxing power or pursuing research from a privileged and seemingly neutral standpoint. We respond to calls to scrutinize institutional forms of inequality by attending to the underlying power dynamics of institutional processes. We thereby draw on insights from power theories and phenomenologically grounded neo-institutionalism. In so doing, we conceptualize how institutional workplace myths positionalize typified actors, i.e., groups of individuals with common ascribed features, along a categorical distinction that depicts them as either able or disabled. We present a process model that aims at informing future research and help identify the ‘flipside’ of institutional arrangements. We then discuss three approaches to undermine the categorical nature of power positionalization inherent in institutional myths.