Institutional Isomorphism

In the new capitalist economy, organizations are same. Hospitals have almost same structure contained outdoor & indoor patient services as well as emergency wards. Five stars hotels have same kind of lobbies, suites, café bar and dancing flours. In production sector; they have also the same purchasing, sales, quality management, distribution and inventory management systems. Why they are same, is the basic question of this paper. At the same time as Marx Webber (1968) mentioned:

"It is primarily the capitalist market economy which demands that the official business of administration be discharged precisely, unambiguously, continuously, and with as much speed as possible. Normally, the very large, modern capitalist enterprises are themselves unequalled models of strict bureaucratic organization".

In nut shell it's clear that bureaucratic as well as collaborative organization doesn't matter what they are nevertheless they are same in their own level of competition. But why they are same and what force them to be same. After similarities what is the point of competitive advantage of these same firms. Dimaggio said this similarity is INSTUTIONAL ISOMORPHISIM. Organization needs legitimacy in their field of operation so the forces of that field make oblige them to be same.

The Coercive Legitimacy; external or internal any lawful rules or polices make organizations same.

The Mimetic Force: desire to be someone, bench marking or the changes in external factors force organizations to be same.

The Normative Forces; third and last force come from the cultural and ethical values and norms of society. Organizations should be like normative force; force organization to isomorphic.

Abstract from DiMaggio & Powell; "The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields"; American Sociological Review, Vol. 48, No. 2. (Apr., 1983), pp. 147-160