Collective action dilemmas are those problems in which there is a conflict between individual and group interests. Norms add a layer of decision rule to collective action problems. The role of institutions in mediating collective action dilemmas is well known. This chapter explores the role of universities as institutions in mediating collective action problems, specifically climate adaptation. The role of a network of institutions that includes universities in adapting to climate change is taken as an illustration of a collective action dilemma. The study aims to examine how theory adaptation can be facilitated to this problem, yielding rich conceptualization. The chapter concludes that the first two pathways of direct and indirect actions embody the role of universities through the value of impact. The other pathways of mediation and engagement demonstrate the role of universities through the value of influence. The study argues that universities successfully solve collective action dilemmas when balancing these contradictory norms well. Sustainable universities will incorporate these insights into their curriculum and practices and impact their students by making them more employable.