Final answer:
Organizations conform in the institutional theory approach to maintain legitimacy, which is essential for gaining support and resources. By adhering to societal norms and expectations, organizations signal their reliability and adherence to shared values, reducing uncertainty and building a stable foundation for operations and growth.
Step-by-step explanation:
Organizations maintain legitimacy by "conforming" in the institutional theory approach because legitimacy helps organizations gain support and resources. Conforming to societal norms and expectations is a critical aspect that institutions use to gain acceptance, enhance their survival prospects, and secure necessary resources from the external environment. In the institutional theory, conformity signals to stakeholders that the organization operates within the accepted frameworks, thereby earning legitimacy and support. Moreover, when organizations conform to regulatory requirements, cultural expectations, and industry standards, they are also able to reduce uncertainty, building a stable foundation for operations and long-term growth. As organizations adhere to these norms, they reaffirm their commitment to shared values, which is paramount in maintaining their legitimacy and therefore securing support from investors, clients, and other stakeholders.