CUSTOMIZATION OR CONFORMITY - AN INSTITUTIONAL AND NETWORK PERSPECTIVE ON THE CONTENT AND CONSEQUENCES OF TQM ADOPTION

This study develops a theoretical framework that integrates institutio nal and network perspectives on the form and consequences of administr ative innovations. Hypotheses are tested with survey and archival data on the implementation of total quality management (TQM) programs and the consequences for organizational efficiency and legitimacy in a sam ple of over 2,700 U.S. hospitals. The results show that early adopters customize TOM practices for efficiency gains, while later adopters ga in legitimacy from adopting the normative form of TQM programs. The fi ndings suggest that institutional factors moderate the role of network membership in affecting the form of administrative innovations adopte d and provide strong evidence for the importance of institutional fact ors in determining how innovations are defined and implemented. We dis cuss implications for theory and research on institutional processes a nd network effects and for the literatures on innovation adoption and total quality management.(.)