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Institutionalization: Both a cognitive outcome and an exogenous process - Cognitively oriented lines of argument defines institutionalization as the product of ongoing repetitive interactions - Another line of argument says it is a formal aspect of the organization Focuses on causes and consequences on conformity Associates institutional processes with the actions of the state, the professions and other central organizations Organizational fields: Key units of analysis - Unit of analysis: the organizational field or societal sector - Components Key suppliers Resource and product consumers Regulatory agencies Professional associations Organizations that produce similar service or product Process to define (DiMaggio & Powel 1983) a. Increase in the extent of interaction among organizations within a field b. Emergence of defined interorganizational structures of domination and patterns of coalition c. Increase in information load d. Development of mutual awareness
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Processes of institutionalization: Promote conformity within fields. Mechanisms conductive to organizational isomorphism - Coercive forces Come from formal and informal pressures In some circumstances, change is a direct response to government mandate - Mimetic changes Encouraged by uncertainty When managers don't know a thing, the organization tends to imitate other organizations - Normative influences Growth of professional communities based on knowledge Growth and elaboration of formal and informal professional networks
Critique
The central idea has been to locate the sources of organizational practices within a broader context
It is both more micro and more macro than other approaches Ethnomethodological view of human actions More structural focus that emphasizes incentives created by larger authority
This is a novel approach, but it shares a lot with sociology And it has shortcomings
The view is over-socialized and rather passive Little attention on how organizations maintain their dominant positions No research on how organization responds to threats
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