Exploring the Effects of Macrocultural Forces on Institutional Isomorphism

According to DiMaggio and Powell (1983), organizations submit to isomorphic pressures and become increasingly homogeneous over time. However, in contrast to this “iron cage” hypothesis, an increasing number of researchers (e.g., Hambrick et al, 2006) show that many industries have become more heterogeneous, not more homogeneous, in their profiles over the past several decades. In this study, I provide an updated test of the reversed isomorphism hypothesis by analyzing a panel of 15 low‐discretion industries in the U.S. over the past 40 years. The results of the empirical analysis confirm that the major macrocultural forces have indeed diminished isomorphic pressure for organizations. The results largely support the reversed isomorphism hypothesis.