Technical Isomorphism and Organisational Homogenisation
The complexity of the political, regulatory, and technological changes confronting organisations forces them to make radical adaptations for survival and competitiveness. According to Institutional Theory, such adaptations force organisations to become more alike. Recent information technology developments in standardisation and integration through the implementation of an Enterprise Resource Planning (ERP) system increase isomorphism even more. Typically, when an ERP system is implemented, organisations must decide whether to customise the software or to modify their business processes to the best practices delivered in the system. If organisations are not discriminative in their ERP implementation, then their business processes can become homogeneous over time, which could erode their competitive advantage in their industry.