Strategic choice in times of stagnant growth and uncertainty: An institutional theory and organizational change perspective

This conceptual study provides insight into the strategic behaviors of firms facing slow growth in times of economic stagnation. Recognizing the inevitability of periods of economic stagnation—with another downturn expected as early as 2022, we note that most industry classifications are considered mature and characterized by a few extremely large companies in each industry group. We introduce the Fortune 500 as an important cross-industry collective of these large firms and suggest that they now comprise an institutional field. This development explains their isomorphic behavior during the recession triggered by the financial crisis of 2008 as well as their subsequent motivation for change…