Institutional theory describes how organizations, over time become more like one another, such that they create an Institution (with a capital I). They follow trends in the marketplace, mimicking one another and coalescing into a particular typology of organization. The typology forms through a “best practice” lens that other organizations in the category adopt, utilize, and conform to whenever possible. This, in turn, creates a self-fulfilling loop that deters internal novelty in the interest of historic continuity. In Institutional theory, organizations are shaped by their wider institutional environment or the field in which they are located.
…latility, the harder it becomes — for anyone working within these companies — to get anything done. As startups drive toward insatiable growth and scale too rapidly, they are replicating the problems which are germane to legacy companies. Meanwhile, automation is eating jobs, computers are getting smarter, and there is a new disruptor on the scene every month. Forget innovation, most of these organizations are merely trying to survive.