Mastering Organizational Growth and Institutional Theory
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Organizational Growth and Institutional Theory
Organizational Growth is the phase in the life cycle where organizations develop competencies and value-creation capabilities that allow them to acquire additional resources.
Institutional Theory
Institutional Theory examines how organizations can increase their capacity to grow and survive in a competitive environment by becoming perceived as reliable and legitimate in the eyes of stakeholders.
As organizations grow, they may imitate competitors, believing this will increase their chances of survival. This leads to organizational isomorphism—the increasing similarity among organizations within the same population.
Three Processes of Organizational Isomorphism
- Coercive Isomorphism: Occurs when there