Re-Examining the Pillars of Institutional Isomorphism: A Comprehensive Literature Review

Abstract

The idea of institutional isomorphism, which explains how organizational practices converge under institutional pressures, is still fundamental to organizational theory. DiMaggio and Powell's (1983) theory, which has its roots in new institutionalism, identifies three fundamental mechanisms of isomorphic change: normative, mimetic, and coercive. Drawing from recent empirical research (2020–2024), this paper provides a thorough analysis of the institutional isomorphism pillars and demonstrates their relevance in modern contexts like post-pandemic adaptation, digital transformation, globalization, and environmental regulation. The study also lists objections to isomorphism, such as its deterministic inclinations and disregard for institutional complexity and organizational agency. The study suggests future research directions for more dynamic and localized applications of institutional theory by examining how these pillars function in both developed and emerging economies.