Stratified view of institutional fit

Abstract

Institutional theory suggests that organizations pursue legitimacy by institutional fit. However, there is a debate about the relationship between institutional fit and performance. Thus, the goal of the present study is to delve more deeply into this issue. Specifically, we evaluate how three dimensions of fit (technology, structure and culture) are related to organizational performance. The analysis is based on survey data and secondary archival data from a sample of 200 firms. Results show that the association of institutional fit and organizational performance varies along different dimensions of fit, which supports the stratified view of institutional fit. According to the results, there is a positive correlation between institutional fit and performance on the technological dimension, no correlation between institutional fit and performance on the structural dimension and a negative correlation between institutional fit and performance on the cultural dimension. One thing is clear: we should consider a stratified view of institutional fit when considering its implications for performance. A possible explanation for the disparity among different dimensions of fit is that it may arise from the levels of organizational resistance associated with the type of change of each dimension.