1998
DOI: 10.1177/017084069801900502
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Organizational Diversity and Change in Institutional Theory

Abstract: Institutional theory has focused on the movement towards, and maintenance of, isomorphic institutional environments. Unfortunately, little attention has been paid to the forces that change institutional environments. Starting with a discussion of the implications of isomorphism on performance, this article attempts to develop a taxonomy of organizations within an institutional environment in order to develop a theory of how organizations respond to violations of institutional norms with possible implications f… Show more

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Cited by 270 publications
(200 citation statements)
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References 52 publications
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“…As institutional theory suggests, compliance to the organizational environment is vital for both organizational survival and competitiveness. This pressure to adapt to the environment is rooted not only in efficiency concerns, but also in the need to gain legitimacy (Kondra & Hinnings, 1998). Although banks exist on their core banking functions, which are solely economic, they strive to construct their identities on non-economic concerns in order to be perceived as trustworthy corporate citizens that exist for the benefit of society.…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…As institutional theory suggests, compliance to the organizational environment is vital for both organizational survival and competitiveness. This pressure to adapt to the environment is rooted not only in efficiency concerns, but also in the need to gain legitimacy (Kondra & Hinnings, 1998). Although banks exist on their core banking functions, which are solely economic, they strive to construct their identities on non-economic concerns in order to be perceived as trustworthy corporate citizens that exist for the benefit of society.…”
Section: Resultsmentioning
confidence: 99%
“…This means that organizations manage to survive and gain legitimacy by copying each other's actions. The norms and values of the organizational field, the context where socially constructed practices are reproduced and outspread (Greenwood, Suddaby, & Hinings, 2002), determine organizational norms (Kondra & Hinnings, 1998). Therefore, organizations need to adapt to the rules and requirements of the environment not only for efficiency, but also to gain legitimacy (Kondra & Hinnings, 1998).…”
Section: Public Relations and Organizational Identitymentioning
confidence: 99%
“…Indeed, institutional theory has successfully explained how conforming to societal expectations increases legitimacy, reduces uncertainty, and increases standardization. However, institutional theory has been criticized (e.g., Kondra and Hinings, 1998;Powell, 1991) for ignoring organizational diversity and how organizations change since, under the institutional perspective, there are few incentives to innovate since adopting unique strategies can seriously hinder the company's legitimacy (Deephouse, 1996).…”
Section: Institutional Theory and Environmental Issuesmentioning
confidence: 99%
“…The organizational structure of a firm is explained by the institutional theory (Kondra & Hinings, 1998). Institutional theory has its centre of attention directed at the deeper and more resilient aspects of organizational structures (Chandler, 1962;Zucker, 1987).…”
Section: Materials and Literature Reviewmentioning
confidence: 99%