The role of coercive forces in organization design adoption

[para.1]: "Roberts and Greenwood (1997) combine transaction cost economics (TCE) and institutional theory to explain how firms make organizational design adoption choices, based on decision makers' preconscious, insti tutionally determined set of candidate organization designs and postcon scious assessments of their efficiency. The constrained-efficiency frame work adopts the TCE assumption that competition leads organizations to seek greater efficiency. It also adopts institutional theory assumptions that mimetic and normative forces contribute models of organizational design by recognizing that social forces create the candidate models of organization designs considered by decision makers. This synthesis is an important first step in marrying the explanatory power of each per spective and in overcoming the limitations of each. The constrained efficiency framework makes an important contribution toward creating a synthesis of the two perspectives that is neither under- nor oversocialized (Granovetter, 1985)."