DiMaggio and Powell (1983)

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Three types of Isomorphism

Firms have to conform to the requirements of the environment.

There are two types of isomorphism: competitive and institutional. Competitive assumes a system of open competitive markets. Institutional (according to Kanter, 1972) assumes a pressure on communes to conform to the outside world, and other organisations.
Firms compete for legitimacy, political power, as well as for customers and resources; for social, as well as economic fitness (Very relevant to Korea).

There are 3 mechanisms of institutional isomorphism:

1. Coercive (legitimisation/politics). Can be formal or informal. Meyer & Rowan (1977) argue that as a firm expands, it further reflects the institutionalised rules of the government, meaning that firms become increasingly homogenised.

2. Mimetic (standard reaction to uncertainty, making firm more stable) can occur if the “environment creates symbolic uncertainty”. This is very beneficial, as it cuts lots of costs, just copying already established plans.

Can be copied intentionally and unintentionally. Skilled workers or large customer base will encourage mimetic. Firms do mimetic to prove legitimacy to show that they are working to improve. Little diversity – firms build on past models and look to future in terms of who they can imitate, judging them on their success and legitimacy. John Meyer (1981) argues that emerging countries are far more isomorphic

3. Normative (associated with professionalism – where workers strive to define their roles). Recent growth in professional workers and managers. Two aspects of professionalism: resting of formal education from university and “growth and elaboration of professional networks that span organisations and across which new models diffuse rapidly”.

Everyone is educated/trained to same level and same fields, becoming homogenised themselves. People at the top are virtually indistinguishable. “Homosexual reproduction of management” (Kanter, 1977), because people chosen from same university, with same views on problems etc. Means outsiders are treated with suspicion.

Professionalisation of management works with structuration of organisational fields. Information between people recognises a hierarchy, “of centre and periphery”, with CEO position to aspire to  Successful organisations will be imitated, reinforcing importance of centralised role. Organisational fields which are of mainly professional workers, will be status-driven

Various hypotheses