Organizations tend to model themselves after similar organizations in their field that they perceive to be more legitimate or successful. - Paul DiMaggio

Organizations compete not just for resources and customers, but for political power and institutional legitimacy, for social as well as economic fitness.

The new institutionalism in organization theory and sociology comprises a rejection of rational-actor models, and interest in institutions as independent variables, a turn toward cognitive and cultural explanations, and an interest in properties of supra-individual units of analysis that cannot be reduced to aggregations or direct consequences of individual’s attributes or motives.

Both the old and new approaches share a scepticism toward rational-actor models of organisation, and each views institutionalisation as a state-dependent process that makes organisations less instrumentally rational by limiting the options they can pursue. Both emphasise the relationship between organisations and their environments, and both promise to reveal aspects of reality that are inconsistent with organisations’ formal accounts. Each approach stresses the role of culture in shaping organisational reality.