MODES OF INTERORGANIZATIONAL IMITATION - THE EFFECTS OF OUTCOME SALIENCE AND UNCERTAINTY

Drawing on neoinstitutional and learning theories, we distinguish thre e distinct modes of selective interorganizational imitation: frequency imitation (copying very common practices), trait imitation (copying p ractices of other organizations with certain features), and outcome im itation (imitation based on a practice's apparent impact on others). W e investigate whether these imitation modes occur independently and ar e affected by outcome salience and contextual uncertainty in the conte xt 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 i ndependently, but only highly salient outcomes sustain outcome imitati on, 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 th at moderate vicarious learning processes, and show asymmetries between learning from success and failure.