BUS 374 Chapter Article: BUS 374 Chapter : Exploring the Limits - Memo

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Marina Puricelli

Document Summary

Many organizations today rely on well-built firm structures and efficient processes to stay competitive in their respective markets. Neo-institutionalists believe that firms who focus on persistence and conformity to social standards rather than change will be successful and avoid organizational death (kraatz, zajac, 1996). However, kraatz and zajac suggest that old institutionalism more accurately represents how companies operate today, as change and adaptation are essential in highly competitive markets (kraatz, zajac, 1996). They used a study on multiple liberal arts colleges located in the united states to help contradict the 7 hypotheses of new institutionalism and prove the validity of adaptation theory. While it is evident in this study that change is needed to survive in the long-term, adhering to neo-institutionalist views may lead to more success in the short-term. The methods used in this study prove all seven of the neo-institutional hypotheses wrong, but the approach taken may have been flawed.