Institutional theory has a Gordian knot to be solved. It lacks a theory of actorhood that defines actors as change agents who perceive institutional contradictions as opportunity for change while complying with institutional theory’s key principal of actors’ embeddedness. To cut this knot, we develop a microfoundational and dynamic based theory of actorhood that is based on two actors’ main properties: skills and identity. As these properties are shaped by macro-conditions such as stable social fields or institutional contradictions and as they evolve over time, our theory of actorhood explains dissimilar behaviour of actors in similar situations. On this basis, we develop four types of institutional actors that behave differently during situations of institutional contradictions.