Abstract
Institutional theory offers a basic framework for explicating different forms of isomorphism. Firms struggle to strike a balance between imitation and differentiation, so as to gain legitimacy in the eyes of the stakeholders. Mimetic isomorphism is the result of interactions of firms in an industry and shift firms towards acceptable behaviors, following presupposed norms and ultimately gain legitimacy in the eyes of the stakeholders, with avoidance of negative consequences.
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