Organizational diversity and change in institutional theory

Alex Z. Kondra, C. R. Hinings

    Research output: Contribution to journalJournal Articlepeer-review

    229 Citations (Scopus)

    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 for institutional change. Essential to this theory is the importance of organizational diversity, risk aversion, the effect of isomorphism on performance, and the role of relative performance in maintaining isomorphism and providing incentives to change.

    Original languageEnglish
    Pages (from-to)743-767
    Number of pages25
    JournalOrganization Studies
    Volume19
    Issue number5
    DOIs
    Publication statusPublished - 1998

    Keywords

    • Institutional theory
    • Isomorphism
    • Organizational change
    • Performance
    • Risk aversion

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