Bases of Conformity and Institutional Theory: Understanding Organizational Decision-Making

Abstract This analysis investigates the micro-dynamics of organizational decision-making by exploring connections between institutional theory, on the one hand, and both social psychological research on conformity and recent work in economics on herd behavior and information cascades, on the other h...

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Bibliographic Details
Published inMicrofoundations of Institutions Vol. 65A; pp. 269 - 290
Main Authors Tolbert, Pamela S, Darabi, Tiffany
Format Book Chapter
LanguageEnglish
Published United Kingdom Emerald Publishing Limited 2019
Subjects
Sociology
organizational decision-making
decoupling
customization
Institutional theory
normative conformity
abandonment
informational conformity
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Summary:Abstract This analysis investigates the micro-dynamics of organizational decision-making by exploring connections between institutional theory, on the one hand, and both social psychological research on conformity and recent work in economics on herd behavior and information cascades, on the other hand. The authors draw attention to the differences between normative and informational conformity as distinct motivational drivers of adoption behaviors by exploring their differential effects on the post-adoption outcomes of decoupling (e.g., Westphal & Zajac, 1994), customization (e.g., Fiss, Kennedy, & Davis, 2012), and abandonment (e.g., Ahmadjian & Robinson, 2001). The authors conclude that normative conformity leads to certain post-adoption outcomes while informational conformity is associated with others.
ISBN:1787691241
9781787691247
ISSN:0733-558X
DOI:10.1108/S0733-558X2019000065A027