The Adoption of the M-Form Organizational Structure: A Test of Imitation Hypothesis

The study of organizational adoption of administrative innovations has been generally guided by the imitation hypothesis. This hypothesis states that, within a relevant population of firms, an innovation is first adopted by a select few innovators who communicate and influence others to adopt it resulting in a predictable diffusion pattern. Using data on the adoption of the M-form organizational structure, this paper reexamines this hypothesis. Based on the reported results, we cannot reject the null hypothesis that organizational adoption of administrative innovations is characterized by a white-noise process. This result brings into question the appropriateness of the imitation hypothesis. Limitations and implications of the results are discussed.