In this episode, we discuss “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizations,” a ground breaking article by sociologists Paul DiMaggio and Walter Powell in 1983. The authors argued that the traditional views of why organizations tended to assimilate one another was not explained by the pursuit of rationality or efficiency. Rather, they did so in response to many other stimuli such as regulatory pressures, professional norms, and the need to reduce uncertainty. But why “the iron cage revisited”? The article was inspired by Weber’s use of the metaphor to describe how bureaucratization was destined to enslave humanity. That it did not (at least not to the extent anticipated) spurred the question of why else do organizations model themselves after others in their fields.Read More