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Drawing on neoinstitutional and learning theories, we distinguish three distinct modes of selective interorganizational imitation: frequency imitation (copying very common practices), trait imitation (copying practices of other organizations with certain features), and outcome imitation (imitation based on a practice's apparent impact on others). We investigate whether these imitation modes occur independently and are affected by outcome salience and contextual uncertainty in the context of an important decision: which investment banker to use as adviser on an acquisition. Results of testing hypotheses on 539 acquisitions that occurred in 1988-1993 show that all three imitation modes occur independently, but only highly salient outcomes sustain outcome imitation. Uncertainty enhances frequency imitation, but only some trait and outcome imitation. The results highlight the possible joint operation of social and technical indicators in imitation, illuminate factors that moderate vicarious learning processes, and show asymmetries between learning from success and failure.*
Many early theories emphasizing the importance of organizational context portrayed organizational environments as broad, static entities, characterized by stable properties such as turbulence or munificence (e.g., Lawrence and Lorsch, 1967). In the past two decades, however, theorists have increasingly emphasized processes through which individual organizations may be influenced by other organizations (Pfeffer and Salancik, 1978; DiMaggio and Powell, 1983). One such process is interorganizational imitation, which occurrs when one or more organizations' use of a practice increases the likelihood of that practice being used by other organizations. Some organizational research has explored specific mechanisms through which such imitation may unfold. DiMaggio and Powell (1983), for example, argued that the movement of professionals might lead organizations to imitate actions taken by other organizations, while Davis (1991) and Haunschild (1993) showed that interlocks may direct interorganizational imitation to particular firms.
In this study, we explore a different issue. We examine broad but distinct modes of selective imitation and predict conditions that will moderate their influence. Because different theories have implied several different potential imitation modes le.g., DiMaggio and Powell, 1983; Levitt and March, 1988; Galaskiewicz and Wasserman, 1989), we first distinguish three fundamental bases for imitation. With frequencybased imitation, organizations execute practices previously used by large numbers of other organizations. With traitbased imitation, organizations use practices previously used by other organizations with certain traits, such as large size. With outcome-based imitation,...