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Articles MSI - Dimaggio: The iron cage revisited - institutional isomorphism and collective rationality in organizational fields

16 important questions on Articles MSI - Dimaggio: The iron cage revisited - institutional isomorphism and collective rationality in organizational fields

Once a set of organizations emerges as a field, a paradox arises. Which paradox and how is DiMaggio researching this paradox?

Rational actors make their organizations increasingly similar as they try to change them. DiMaggio describes 3 isomorphic processes (coercive, mimetic, normative) leading to similar organizations. Then hypotheses to explain isomorphism are explained.

Organizations become more similar, but not necessary more efficient. Highly structured organizational fields provide a context in which individual efforts rationally with uncertainty and this leads to homogeneity (in structure/culture/output). What did DiMaggio found out during the explaination of homogeneity?

That organizational field, in the initial stage of their life cycle, display considerable diversity in approach amd form. Once a field becomes well established, there is a push towards homogenization.

What happens once disparate (ongelijke) organizations in the same line of business are structured into an actual field? (DiMaggio)

Powerful forces (by competition, the state, or the professions) emerge that ;ead them to become more similar to another. On the long run actors makeing ration decisions construct around themselves an environment that constrains their ability to change in further years.

Which concept captures the proces of homogenization the best? (DiMaggio)

Isomorphism. It is a constraining process that forces one unit in a population to resemble (op andere lijken) other units that face the same set of environmental conditions. Organizational characteristics are modified in the direction of increasing compatability with environmental characteristics.

Which 3 mechanisms through which institutional isomorphic change occurs is identified by DiMaggio?

1 Coercive isomorphism (stems from polical influence and the problem of legitimacy)

2 Mimetic isomorphism (resulting from standard responses to uncertainty)

3 Normative isomorphism (associated with professionalization)

> The types are not alway empirically distinct. They can intermingle in emprical setting, but they tend to derive from different conditions and may lead to different outcomes.

Coercive isomorphism is the formal and informal pressures from organizations upon which they are dependent. Explain these (in)formal pressures: (DiMaggio)

Formal: direct and explicit imposition of organizational models: e.g. government mandate on pollution control, standards, tax laws
Informal: more subtle and less explicit: cultural expectations

Explain coercive isomorphism in the words of DiMaggio?

It results from (in)formal pressures exerted (uitgeoefend) on organizations by other organization upon which they are dependent and by cultural expectations in the society. Common legal environmental, like pollution control technologies of obligation to hire accountants, affects many aspects of an organization. When there are dominant organizations, other organizations become more homogenous to stay legitimate.

> It stems from political influence and the problem of legitimacy (the expansion of the central state, the centralization of capital, and the coordination of philanthropy all support the homogenization of organizational models through direct authority relationships).

Mimetic isomorphism is standard responses to uncertainty. Organization model/mimic unintentionally (f.e. knowledge exchange) and explicitly (f.e. via consultants). When do organizations model? (4) (DiMaggio)

When: technologies are poorly understood, goals are ambiguous, environment creates symbolic uncertainty and companies are large

Explain mimetic processes/isomorphism in the words of DiMaggio?

Uncertainty encourage imitation. F.e. poor understanding technologies, ambiguous goals, environment creates symbolic uncertainty make organizations model themselves to other organizations. Modeling is a response to uncertainty. A skilled labor force or a broad customer base results in a stronger pressure for an organization to provide the same as other organizations en this encourages mimetic isomorphism. Besides this: new organizations are modeled upon old ones, or to similar organizations that seems to be more legitimate or successful.
> Resulting from standard responses to uncertainty

Explain normative pressures/isomorphism in the words of DiMaggio?

This stems primarily from professionalization (= the collective struggle of members of an occupation to define the conditions and methods of their work, to control the production of producers). The filtering of personnel and the guarding process regarding hiring professionals and following their career progression, results in normative isomorphism: because the one who make it to the top are virtually indistinguishable.
> Associated with professionalization

Which 2 aspects of professionalization are important source of (normative) isomorphism? (DiMaggio)

1 The resting of formal education and of legitimation in a cognitive base produced by university specialist

2 The grwoth and elaboration of prfoessional networks that span organizations and across which new models diffuse rapidly.

Central organizations serve a models: their policies and structures will be copied throughout their fields. What is another explaination for isomorphism that isn't mentioned yet by DiMaggio?

Organizations are rewarded for being similar. This similarity makes it easier for organizations to transact with other organizations, to attract career-minded staff, to be acknowledged es legitimate and reputable, and to fit into administrative categories. (But this doesn't insure dat conformist organizations are more efficient than deviant peers).

Describe another process that encourages homogenization?

Organizational fields that include a large professionaly trained labor force, will be driven primarily by status competition/ Prestige and resources are key elements in attracting professionals, this will lead to homogenization because the want to provide the same benefits and services as competitors.

What are the 2 answers that DiMaggio provide to the paradox that when actors want to change organizations, they make them more similar?

1 Natural selection: this occurs when selection mechanisms operate to weed out organizational forms that are less fit

2 Key elites: they guide and control the social system through their command of crucial positions in major organizations

>> DiMaggio doesn't reject one of those answers. It are possible answers.

What is meant with the organizational field? (Slides Klein over DiMaggio)

Those organizations that, in the aggregate, constitute a recognized area of institutional life:
Key suppliers, resource and product consumers, regulatory agencies, and other organizations that produce similar services/products.

Isomorphism is not necessarily efficient but legitimate, because it is easier for organizations to get access to resources. Which resource?

Easier to transact, attract career-minded staff, be acknowledged as legitimate and reputable and get access to public/private grants and contract

The question on the page originate from the summary of the following study material:

Management of Sustainable Innovation | Bossink, et al

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Articles MSI - Dimaggio: The iron cage revisited - institutional isomorphism and collective rationality in organizational fields

16 important questions on Articles MSI - Dimaggio: The iron cage revisited - institutional isomorphism and collective rationality in organizational fields

Once a set of organizations emerges as a field, a paradox arises. Which paradox and how is DiMaggio researching this paradox?

What happens once disparate (ongelijke) organizations in the same line of business are structured into an actual field? (DiMaggio)

Which concept captures the proces of homogenization the best? (DiMaggio)

Which 3 mechanisms through which institutional isomorphic change occurs is identified by DiMaggio?

Coercive isomorphism is the formal and informal pressures from organizations upon which they are dependent. Explain these (in)formal pressures: (DiMaggio)

Explain coercive isomorphism in the words of DiMaggio?

Mimetic isomorphism is standard responses to uncertainty. Organization model/mimic unintentionally (f.e. knowledge exchange) and explicitly (f.e. via consultants). When do organizations model? (4) (DiMaggio)

Explain mimetic processes/isomorphism in the words of DiMaggio?

Explain normative pressures/isomorphism in the words of DiMaggio?

Which 2 aspects of professionalization are important source of (normative) isomorphism? (DiMaggio)

Central organizations serve a models: their policies and structures will be copied throughout their fields. What is another explaination for isomorphism that isn't mentioned yet by DiMaggio?

Describe another process that encourages homogenization?

What are the 2 answers that DiMaggio provide to the paradox that when actors want to change organizations, they make them more similar?

What is meant with the organizational field? (Slides Klein over DiMaggio)

Isomorphism is not necessarily efficient but legitimate, because it is easier for organizations to get access to resources. Which resource?

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