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Cited by 38,435Management and Organizational StudiesWeber, Simmel, Sociological TheoryManagement Theory and Practice

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields

DiMaggio, Paul J., Powell, Walter W.·1983·American Sociological Review
DOI 10.2307/2095101
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Abstract

Instead of examining why organizations are dissimilar, this study explores why organizations tend to be increasingly and inevitably homogenous in their forms and practices. Organizations in a similar line of work are structured into an organizational field by powerful forces that lead them to become similar. Rather than the causes of rationalization and bureaucratization suggested by Max Weber, including competition and the need for efficiency, institutional similarity is due to the structuration of organizational fields, a process caused largely by the state and the professions, which are the great rationalizers of the late 20th century. In highly structured organizational fields, rational efforts of individuals aggregately lead to structural, cultural, and output homogeneity. Homogenization is best captured by the concept of isomorphism, the process whereby one element in a population resembles others that confront the same environmental conditions. The two types of isomorphism are competitive and institutional. Three processes lead to organizational similarity: (1) coercive isomorphism stemming from political influence and the problem of legitimacy; (2) mimetic isomorphism resulting from uniform responses to uncertainty; and (3) normative isomorphism associated with professionalism. While these isomorphic processes improve organizational transactions, they do not necessarily increase internal efficiency. Twelve hypotheses are offered for further research about which organi…

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  • Actors with power can attempt to change the broader environment by forcing resource recipients to conform to specific norms and behaviors, which may result in a loss of autonomy for resource-scarce organizations.

    “Within these inter-organizational resource relationships, actors with power (i.e., resource providers) can attempt to change the broader environment by forcing resource recipients to conform to specific norms and behaviors (DiMaggio & Powell, 1983; Nienhuser, 2008), which may result in a loss of autonomy for those resource-scarce organizations (Benson, 1975; Pfeffer & Salancik, 1978).”

    From Understanding Government-Nonprofit Funding Agreements in Human Service Organizations Using Resource Dependence Theory and Organizational Legitimacy (2026) · cites this paper as DiMaggio & Powell, 1983

  • The decision to implement digital transformation may not be due to internal motives; institutions are likely to be stimulated to adopt and use technology via external isomorphic pressures, such as competitors, customers, or the government.

    “The decision to implement digital transformation may not be due to internal motives; institutions are likely to be stimulated to adopt and use technology via external isomorphic pressures, such as competitors, customers, or the government (Bresciani et al., 2021; DiMaggio and Powell, 1983).”

    From Mastering digital transformation: The nexus between leadership, agility, and digital strategy (2022) · cites this paper as DiMaggio and Powell, 1983

  • Coercive isomorphism results from both formal and informal pressures exerted on organisations by other organisations on which they are dependent and by the cultural expectations of wider society in which they are embedded and function.

    “'Coercive isomorphism' results from both formal and informal pressures exerted on organisations by other organisations on which they are dependent and by the cultural expectations of wider society in which they are embedded and function (DiMaggio & Powell 1983).”

    From Conceptualising the adoption of sustainable procurement: an institutional theory perspective (2014) · cites this paper as DiMaggio & Powell 1983

  • Supplier assessment programs have contributed to the greening of suppliers and the spread of corporate social responsibility by coercive isomorphic pressures.

    “Supplier assessment programs have contributed to the greening of suppliers (Rao 2002, 2005; Rao & Holt 2005) and the spread of corporate social responsibility by coercive isomorphic pressures (DiMaggio & Powell 1983).”

    From Conceptualising the adoption of sustainable procurement: an institutional theory perspective (2014) · cites this paper as DiMaggio & Powell 1983

  • DiMaggio and Powell (1983) state that institutional isomorphic change occurs through three mechanisms.

    “DiMaggio and Powell (1983) state that institutional isomorphic change occurs through three mechanisms:”

    From Conceptualising the adoption of sustainable procurement: an institutional theory perspective (2014) · cites this paper as DiMaggio and Powell 1983

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Authors
DiMaggio, P. J., & Powell, W. W.
Affiliations
  • Princeton University (US)
  • Stanford University (US)
ORCID
Venue
American Sociological Review
Publisher
SAGE Publications
Published
1983-04
Volume
48
Issue
2
Pages
147
ISSN
0003-1224 (ISSN-L)
DOI
10.2307/2095101
OpenAlex
W3123282572
Cited by
38,435
References
0
Citations by year
2026: 4483 · 2025: 3113 · 2024: 2324 · 2023: 2157 · 2022: 2138 · 2021: 2219 · 2020: 2117 · 2019: 1921 · 2018: 1710 · 2017: 1715 · 2016: 1506 · 2015: 1461 · 2014: 1327 · 2013: 1231 · 2012: 1266
FWCI
28.28
Type
journal article
Language
en
Open access
closed
Locations
American Sociological Review (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management and Organizational Studies
  • Social Sciences › Sociology and Political Science › Weber, Simmel, Sociological Theory
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management Theory and Practice
Keywords
institutional isomorphism, organizational field, organizational homogeneity, coercive isomorphism, mimetic isomorphism, normative isomorphism, professionalism, legitimacy, Max Weber, rationalization, bureaucratization, state influence, goal ambiguity, technological uncertainty, social change

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