BUS 374 Lecture Notes - Lecture 4: Tomato Soup, Canned Tomato, Isomorphism

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Medha Satish Kumar

Document Summary

While population ecological view looked at how external environmental factors (ecologies) impact o(cid:396)ga(cid:374)izatio(cid:374)al su(cid:396)(cid:448)i(cid:448)al, i(cid:374)stitutio(cid:374)alis(cid:373) offe(cid:396)s a(cid:374)othe(cid:396) pe(cid:396)spe(cid:272)ti(cid:448)e of ho(cid:449) o(cid:396)ga(cid:374)izatio(cid:374)(cid:859)s e(cid:454)te(cid:396)(cid:374)al environment offers legitimacy to a firm that is vital for their success. They suggest that organizations that are perceived as legitimate by the larger environment, also perform well. Unlike population ecology, however, institutionalism perspective suggests that this external pressures to be perceived as legitimate brings in similarity between organizations (as against variability according to population ecologists). They believe that organizations adopt structures and processes that are (cid:272)o(cid:374)side(cid:396)ed as (cid:858)app(cid:396)op(cid:396)iate(cid:859) (cid:271)(cid:455) stakeholders, these take a rule-like status and organizations tend to follo(cid:449) these (cid:858)(cid:396)ules(cid:859) (cid:373)ai(cid:374)l(cid:455) to (cid:271)e see(cid:374) as (cid:858)legiti(cid:373)ate(cid:859). Legitimacy is defi(cid:374)ed as the ge(cid:374)e(cid:396)al pe(cid:396)spe(cid:272)ti(cid:448)e that a(cid:374) o(cid:396)ga(cid:374)isatio(cid:374)(cid:859)s a(cid:272)tio(cid:374)s a(cid:396)e desi(cid:396)a(cid:271)le, p(cid:396)ope(cid:396) a(cid:374)d appropriate within the enviro(cid:374)(cid:373)e(cid:374)t(cid:859)s s(cid:455)ste(cid:373) of (cid:374)o(cid:396)(cid:373)s, (cid:448)alues a(cid:374)d (cid:271)eliefs. Institutional perspective describes how organizations survive and succeed through congruence between an organization and the expectations from its environment.