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What is the isomorphism hypothesis in the institutional theory approach?

a) Organizations always resist isomorphism.
b) The hypothesis stating that organizations strive to be similar to their institutional environment.
c) Isomorphism has no impact on organizations.
d) Ignoring any similarity between organizations and their environment.

1 Answer

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Final answer:

The isomorphism hypothesis in institutional theory suggests organizations mimic others in their environment to conform to norms, which leads to homogenization in institutional practices.

Step-by-step explanation:

The isomorphism hypothesis in the institutional theory approach refers to the tendency of organizations to become similar to others in their institutional environment. The correct answer to the provided question is option b) The hypothesis stating that organizations strive to be similar to their institutional environment. This concept arises from the pressure to conform to norms, rules, and standards that are prevalent within a given field. Such pressures may be coercive, arising from laws and regulations; mimetic, resulting from standard responses to uncertainty; or normative, associated with professionalization and cultural expectations. This hypothesis has significant implications for how organizations are structured and how they behave, often leading to a homogenization of practices across organizations in the same field.

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