Institutional Isomorphism Research Articles

Artificial Intelligence as an Endogenous Mechanism of Institutional Isomorphism

Artificial Intelligence as an Endogenous Mechanism of Institutional Isomorphism

Determining factors of sustainability report using the institutional isomorphism theory approach

One form of company participation in sustainable development is the preparation of quality reports (SR) taking into account SR content and pressure from stakeholders including the determinants of SR quality in companies listed on the IDX during 2017-2020 with an isomorphism theory approach. The sample for this study was 444 companies using the purposive method, with the criteria for companies compiling SRs during the year of observation either separately or in combination with the annual financial statements. Data analysis with multivariate regression. The results showed that environmental pressure and social pressure coercively isomorphism had an effect on SR quality, and industrial pressure had mimetic isomorphism affected SR quality, while normative pressure from the audit committee had no effect on SR quality because p > 0.05. This study proves that testing the quality of SR with a coercive, mimetic, and normative isomorphism theory approach can determine the quality of SR.

Does Accountability Matter in Performance?: Cases from Charity Navigator

As the charitable sector continues to grow, so do concerns over its accountability. Calls for greater accountability for nonprofits have led to not only an increase in government oversight activities, but also the proliferation of accountability standards within non-profit communities as the sector has been determined to address the issue through self-regulation efforts. Given the pervasiveness of the standards movement, the purpose of this study is to evaluate whether and to what extent accountability reforms matter in improving organizational performance. Various theories (e.g., scientific management and organizational learning theories; resource dependence theory and institutional iso-morphism) are explored to understand the nature of the accountability-performance relationship. Analysis of Charity Navigator data (N=943) indicates that accountability measures are positively associated with financial performance (more efficient in using resources, for example). Reviewing CEOs’ compensation packages is one of the indi-vidual accountability features that is particularly impactful in improving performance. Additionally, our findings shed light on the expansive scope of the standards move-ment, highlighting the importance of further investigating the connection between ac-countability and organizational performance beyond finance.

Institutional Homogenization through McDonaldization in the Digital-Based Minimum Service Standards Reporting System (e-monev SPM)

Digital-based governance transformation is needed to respond to dynamic global challenges. This article aims to analyze institutional isomorphism through Mcdonaldization in a digital-based minimum service standard reporting system (e-monev SPM). Various studies show that governance needs to be dynamic, collaborative and innovative to achieve an efficient system by utilizing technological developments. In contrast to previous studies, this article argues that the transformation of governance in the reporting system for the implementation of digital-based Minimum Service Standards (e-monev SPM) indicates the occurrence of McDonaldization which is characterized by changes in rationality as a feature of modern society by utilizing technological developments that lead to the occurrence of institutional homogenization. This article uses a qualitative approach with multiple methods. Data were obtained from in-depth interviews, literature studies, secondary data, official documents and digital data. The findings of the data show the occurrence of McDonaldization in 4 (four) dimensions, namely Efficiency seen from changes in reporting mechanisms and speed, Calculability seen from the ability to be used periodically for interested parties, Predictability seen from content standardization and reporting time, and Control seen from e -monev as a digital-based tool to ensure regional compliance in reporting. The institutional homogenization efforts are indicated by the occurrence of Coercive Isomorphism related to the implementation of mandates regarding changes in the reporting system, Mimetic Isomorphism which is shown through the adoption of technology in the reporting system, and Normative Isomorphism which can be seen from organizational professionalization efforts related to increasing human resource capacity, facilities and infrastructure, cooperation, and budget. However, there is also an irrational dimension of McDonaldization rationality, which is related to the readiness of infrastructure and human resources. This article contributes to efforts to improve the quality of governance by utilizing technological developments through a digital-based reporting system .

Codes of Conduct for Undergraduate Teaching in the Top-400 Universities on the Times Higher Education World University Rankings

Teaching codes of conduct form part of the ethics infrastructure of universities seeking to raise teaching standards and promote academic integrity. These codes stipulate desired teaching practices necessary for faculty members to make informed choices regarding their teaching role performance. This study investigated the existence of publicly posted codes of conduct for undergraduate teaching in a random sample of 100 universities ranked among the Times Higher Education World University Rankings top-400 institutions. Based on DiMaggio & Powell’s (1983) model of institutional isomorphism, we posited the Times Higher Education World University Rankings top-400 institutions as an organizational field. Findings reveal tepid isomorphic pressures for codes of conduct in this organizational field as a slight majority of these top universities publicly post codes of conduct with tenets reflective of ethical principles for teaching. Lower ranked universities post codes with more of these tenets than higher ranked universities and in particular tenets very protective of students as clients. These tenets relate to moral behavior and whose ethical infringement have legal ramifications, such as not having sexual relationships with students, harassing students, or teaching while intoxicated from alcohol or drugs. Isomorphic pressures to publicly post codes may be stronger among lower ranked universities that emphasize teaching and research. Since a code of conduct may increase faculty members’ sensitivity to ethical issues but not actually promote ethical behavior, we recommend reinforcement activities for faculty members.

Institutional isomorphism and performance management: exploring the linkage and relationship in English social housing

This paper investigates institutional isomorphism within English social housing through the theoretical lens of strategic performance management. By employing a multiple case study analysis, we uncover how external isomorphic pressures are sensed within the organization as a strategic dissonance through its strategic performance management system. Housing Associations (HAs) need to respond to these ‘sensed’ external changes by adapting their internal strategic performance management, which are then measured and reported in a rapidly changing external environment. We argue that by focusing on changes in managing performance, organizational performance can become a lens by which the internalization of isomorphic pressures in social housing can be studied. A conceptual framework for social housing has been developed to study how HAs manage their performance in a rapidly changing context.

Enhancing the MSME Islamic Financial Inclusion in Indonesia: An Institutional Theory Perspective

The concept of financial inclusion is a complex problem, and it was constructed by several aspects ranging from socio-cultural, psychological, economic, geographical and political issues. Financial inclusion under the conceptualisation of institutional theory highlights the role of institutions in active markets, government, communities and societies in explaining the financial exclusion phenomenon, emphasising its vital position as the component in influencing the realisation of financial inclusion. By implementing this theory, the main objective of this study is to examine and identify the roles of involved institutions as a critical determining factor to attain Islamic financial inclusion for the Micro, Small, and Medium-sized Enterprise (MSME) sector in Indonesia by incorporating the notion of “Institutional Isomorphism” in their operation. This study suggests that by integrating the institutional pressure in the institutional environment of the three involving sectors, namely: The public sector, Islamic financial services providers and the MSMEs industry, this system will intensify the chance of the MSMEs sector in embracing Islamic financial inclusion, improve their productivity, and contribution to Indonesia’s sustainable economy.

What explains the spread of corporate social responsibility? The role of competitive pressure and institutional isomorphism in the diffusion of voluntary adoption

AbstractThis study provides a new perspective on the determinants of the spread of voluntary corporate social responsibility (CSR) adoption by incorporating the potential role of its adoption by industry competitors. We find supportive evidence that firms make CSR adoption decisions in response to competitive pressure as well as institutional mimetic pressures. Based on an event history analysis of longitudinal data from a sample of 711 Korean publicly traded firms over a 12-year period, our findings suggest that the CSR behavior of competitors is positively associated with a focal firm's earlier adoption of CSR, leading to the diffusion of CSR across firms. Specifically, this study shows that the pure rivalry-driven pressure from non-leader competitors has a stronger positive relationship with earlier CSR adoption. The results also indicate that a firm's CSR adoption decision is accelerated by competitive rivalry as well as social pressures arising from institutional mimetic isomorphism.

Institutional change in higher music education: A quest for legitimacy

Institutional change is being called for to renew higher music education (HME). But what institutional pressures, specifically, are driving these calls, and how are HME organisations responding to pressures to change? By turning to institutional theory, we lean on the concept of institutional isomorphism to shed light on how HME organisations may be navigating pressures to appear legitimate in the field to secure organisational survival. Drawing from a comparative case study of two HME organisations from Norway and the Netherlands, in which strategic plans and interview transcripts with students and professors have been analysed, we discuss how change processes are intertwined with an organisational quest for legitimacy. The findings suggest that there are overarching pressures to change in the field of HME and that variables in the institutional environment indicate how processes of change may unfold. Finally, implications of this unveiled landscape are discussed.

Institutional Diversity or Isomorphism? Research on the Evolution of Collective-Owned Construction Land Marketization Reform since the 1990s—The Case of Shunde and Wujiang, China

Collective-owned construction land (CCL) marketization is an important driving force for the rapid development of China’s rural economy and society. Recognizing the trends and logic of its institutional changes is important for better understanding the central-local interrelation and the new-round CCL reform. Throughout the process of rural land reform since China’s reform and opening up, together with the unified policy guidance from the central government, the diversity of local practices and the trend of convergence in the development process deserve attention. Based on the institutional isomorphism theory, this paper analyzes the evolution of the CCL system in Shunde, Guangdong Province, and Wujiang, Jiangsu Province, since the 1990s, empirically demonstrating the trend of convergence based on diversity and exploring the underlying influencing mechanisms. The study finds that the evolutionary practice is characterized by the trend of ephemeral convergence represented by the shared cooperative and the land reservation reform and that of coeval convergence represented by the construction land nationalization. Top-down coercive pressure, horizontal imitative learning pressure, and governance-embedded normative pressure jointly shape the evolutionary convergence. This paper argues that the diversity of local experiments should be allowed and encouraged based on local characteristics. Policy flexibility should be further considered by the central government when formulating uniform policies for local adaptability.

Review of “The Quantified Scholar: How Research Evaluations Transformed the British Social Sciences”

The Quantified Scholar by Juan Pablo Pardo-Guerra tackles a subject that is discussed fervently behind the scenes of academia, in the corridors of universities, or during the breaks at departmental meetings, that is practices of assessing scholars’ work. With extended computational case studies on the work of social scientists in the United Kingdom, Pardo-Guerra builds a platform to address the two key questions in the book: do universities foster a form of scholarly excellence and selectivity that is, in fact, visible, measurable, accountable to the public? And how do the quantification and ranking of scholars and their work, through lists, assessment exercises, and other devices, affect the scholarship itself? Pardo-Guerra argues that knowledge produced by social scientists has become increasingly homogenous within and across institutions through a process of epistemic sorting. The book demonstrates that a key driver of homogenization has been a research evaluation exercise in the United Kingdom that started in 1986 and that epistemic sorting can be understood as a mechanism leading to institutional isomorphism in academia. The latter is my interpretation of this concept because, while the author once refers to (p. 10) the classic work of DiMaggio and Powell (1983), he does not fully explain how epistemic sorting differs from coercive isomorphism, which DiMaggio and Powell suggest is the result of “both formal and informal pressures exerted on organizations by other organizations upon which they are dependent and by cultural expectations in the society within which the organization functions” (p. 150). This definition seems to apply to the situation of social science scholars struggling with national research evaluation exercises in the United Kingdom as presented in the book.

Board gender diversity and corporate environmental commitment: A subnational perspective

AbstractWithin the expanding literature on the interplay of corporate governance and corporate environmental behavior, this study introspects the contrastingly reported relationship between board gender diversity (BGD) and corporate environmental commitment (CEC). It empirically explores the moderating effect of coercive (regulation stringency), normative (ethical standards), and mimetic pressures (following of peers), derived from the provincial level isomorphic exhibition of neo‐institutional theory, in the A‐share Chinese listed firms. Apart from confirming the aggregate level positive association between the variables, the findings also highlight the moderating effect of subnational institutional pressures on the relationship. While ruling out the endogeneity and establishing the robustness, the findings imply that the interplay of subnational institutional isomorphism and corporate governance in the case of BGD‐CEC relationship are likely both pertinent and prevalent. Moreover, the increase in BGD enhances the CEC of a firm, subject to the fulfillment of a province's specific boundary conditions, predefined by the unique set of subnational institutional pressures.

Evidence of neo-bureaucracy and institutional isomorphism in the implementation and functioning of the balanced scorecard: A case study

Recent years have seen constant pressure for more efficient management in the educational sector, and some studies have addressed the application of the Balanced Scorecard (BSC) in this sector. Analysis of this literature shows that theoretical developments in this research area are scarce, so this article aims to examine the presence of institutional isomorphism and neo-bureaucracy in the implementation and development of the BSC in a public educational institution in Brazil. It investigates how the presence of isomorphic pressure and neo-bureaucratic characteristics influence the implementation and development of the BSC in this sector. An interpretative approach was adopted to study this topic, resorting to a single case study. Data were gathered through semi-structured interviews and documentary analysis, and treated using qualitative analysis software, i.e., Nvivo, (QSR International, Version 10). The presence of neo-bureaucratic characteristics was found in the implementation and development of the BSC, with these characteristics contributing to the success of the tool in the teaching institution studied. We also found the presence of isomorphic pressure, in the decision to introduce the BSC, showing a clear presence of coercive isomorphism. However, as in any single case study, the results cannot be generalized.

Public Accounting in China: The Role of Occupational Community within a Globalized Profession*

ABSTRACTThe globalization of the world economy has brought drastic changes to institutions of work and the structures that support them. This paper analyzes the evolving public accounting profession in China. We constructed a unique qualitative data set by conducting two rounds of on‐site interviews with public practice accountants in Chinese domestic and international firms in 2015 and 2016. Through narrative analysis of accountants' careers, we find that domestic accountants form a distinct group based on their role in supporting the Chinese accounting profession and the pressures, challenges, and opportunities they face in career choice and work conditions. Our study reveals how the well‐known distinctions of language, training, and international experience are further entwined with strong ties to state policy and the “transmission belt” of information flowing between regulatory bodies and workplace institutions. The accounting profession in China shares much in common with the “Western” form of the profession, evidence of the institutional isomorphism documented in the literature on Big 4 firms. Our study highlights additional nuances surrounding regulation and control of the accounting field, notable in domestic firms, which distinguish the Chinese profession within the global field.

Institutional isomorphism under the test of Non-financial Reporting Directive. Evidence from Italy and Spain

PurposeThis paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the authors evaluate what kind of institutional pressure has the highest impact on the quality of corporate disclosure on sustainability issues.Design/methodology/approachThe authors build a quality index based on the content analysis of sustainability information disclosed, before and after the transposition of the Directive, by Italian and Spanish companies belonging to different industries. The authors use an OLS regression model to analyse the effect of coercive, normative and mimetic forces on the quality of the sustainability reports.FindingsThe results highlight that normative and mimetic mechanisms positively affect the quality of sustainability reporting, whereas there is no evidence regarding coercive mechanisms, indicating that the new requirements do not provide a significant contribution to the development of better reporting practices, at least in the two analysed countries.Originality/valueTo the best of the authors’ knowledge, this is one of the few studies assessing the quality of sustainability reporting through an analysis involving the period before and after the implementation of the EU Directive. It enriches the literature on institutional theory by analysing how the different dimensions of isomorphism affect the quality of information disclosed by companies according to the EU requirements. It contributes to a better understanding of the impact of the non-financial information Directive, and the results of this paper can be relevant for regulators, practitioners and academia, especially in view of the adoption of the new Corporate Sustainability Reporting Directive proposal.

Understanding Australian and United States Engineering Education Research (EER) contexts

ABSTRACT Engineering education research (EER) is a growing and increasingly globally connected field. Understanding cultural and contextual factors is fundamental to EER and further is critical to enabling fruitful international collaborations. The purpose of this research is to understand how engineering education researchers experience and understand EER in Australia and the United States to better facilitate future international collaborations. This research draws on eight interviews conducted with participants who had significant experience carrying out EER in both the United States and Australia and ranged in their career status. Two key domains of comparison emerged from the data: 1) The landscape: Structure and resources of EER in each context, and 2) How the landscape plays out: Implications on EER studies and collaborations. Our analysis finds extremely different research environments for EER in Australia and the United States, the implications of which can be explained in par by resource dependency theory and institutional isomorphism. Our results can inform and enhance future collaborations across these national contexts and help researchers identify opportunities for symbiotic research relationships.

Supporting Sponsored International Students during COVID-19 Pandemic: Insights from a Study of Kazakhstani “Bolashak” Scholarship Recipients

The aim of this study was to understand how international students sponsored by the “Bolashak” program administered in Kazakhstan perceived the support provided by the host institutions and the funding agency during the unprecedented COVID-19 pandemic. We conducted a cross-sectional survey to gain a foundational understanding and basic description of the central phenomenon. Our findings demonstrate that “Bolashak” scholarship recipients seem generally satisfied with the overall level of support provided, however, they seem to feel better supported by the host institutions than the scholarship administering agency. We employed a combination of three theories—Principal–Agent Theory, Institutional Isomorphism Theory, and the Theory of Institutional Dynamics in Interorganizational Collaboration, which help to explain our findings. Study findings suggest several areas of improvement for institutional emergency response and sponsored students.

Performance of health plan operators: before and during the pandemic

Objective: To analyze the economic-financial and operational performance of Health Plan Operators (HPO), before (3Q2018-4Q2019) and during the pandemic (1Q2020-2Q2021) under the theory of institutional isomorphism.
 Method: This is descriptive documentary research that uses statistical techniques to compare medians (Wilcoxon and Kruskal-Wallis) and correlation (Spearman) between performance and socioeconomic indicators, considering the five Health Plan Operators (HPO) with the largest number of beneficiaries.
 Results: A statistically significant reduction was observed, after the beginning of the pandemic, for the indicators of profitability, expenses, cost variation, and financial result. On the other hand, there was a growth in current liquidity and an increase in the mean receipt timeframe of payments (CRPM) and event payment (APTE). The performance comparison shows that in the pandemic, profitability and APTE were no longer significantly different. As for the association between the variables, the unemployment rate shows the highest number of relationships with the performance levels.
 Theoretical/methodological contributions: Highlights the performance of the five largest OPS, considering the Sars-Cov-2 pandemic period, considering that these companies can be directly affected by the potential increase in demand for health care by their beneficiaries. By the theoretical prism of institutional isomorphism, these companies are references for the sector.

Analysis of Pangandaran Regency Government’s Performance Accountability Strengthening

Research aims: This study aims to analyze the Pangandaran Regency Government’s performance accountability strengthening, which took place relatively quickly, and identify performance accountability strengthening plans for the coming period.Design/Methodology/Approach: This research used a qualitative and case study approach to achieve the research objectives. Data collection techniques employed were in-depth interviews and documentation.Research findings: The analysis results showcased that Pangandaran Regency Government’s performance accountability strengthening was dominated by coercive and mimetic isomorphism, but the phenomena move towards normative isomorphism. This study also uncovered that the plan to strengthen performance accountability for the next period formed a specific pattern over time.Theoretical contribution/Originality: This research also provides an academic contribution as a reference regarding performance measurement systems and the institutional isomorphism phenomenon.Practitioner/Policy implication: This research provides a practical contribution to the Pangandaran Regency Government and other local governments that still have professional problems in strengthening performance accountability. Research limitation/Implication: This study has limitations, i.e., in the discussion of the Pangandaran Regency Government’s performance accountability strengthening plan, in which this research had not been accompanied by a review of the Pangandaran Regency Government's Regional Medium Term Development Plan (RPJMD) for 2021-2026. It was because when researchers collected data, the RPJMD was still in preparation.

Drivers of regulatory reform in Canadian health professions: Institutional isomorphism in a shifting social context

AbstractResearch has documented how the decline in professional self-regulation in the UK and Australia was led by policy-makers in response to regulatory failures. In Canada, professional self-regulation is currently in decline as well, and while policy-makers have driven some change it is also the case that self-regulating professions have begun to transform themselves from within: altering their structure, make-up, and processes to enhance fairness, public input, and accountability, while reducing professional control. Why would they do so? This paper draws on the concept of institutional isomorphism to understand why professional regulators would invoke changes that, on the surface, might seem to counteract their own interests. Analysing data from 46 interviews with leaders in healthcare profession regulation, this paper examines how coercive, mimetic, and normative processes drive regulatory reform in a changing regulatory field.