The impact of competition on the importance of conforming to social norms: Strategies for managed care organizations
Journal of Health Organization and Management
ISSN: 1477-7266
Article publication date: 1 March 2006
Abstract
Purpose
This study focuses around the central question of whether or not the relative importance of conformity to institutional norms varies as markets become more competitive.
Design/methodology/approach
Using data gathered for 187 managed health care plans in the US, this study uses hierarchical regression analysis involving blocked variables.
Findings
This study finds that conformity to technical environmental requirements has a significant impact on performance at all levels of competition. However, the importance of conformity to institutional norms increases as markets becomes more competitive.
Practical implications
From the perspective of MCOs, this means that managers need to carefully monitor the prevailing technical and institutional environmental forces and match their responses according to the competitiveness of their individual markets. From a societal perspective, this study suggests that improved health care delivery is likely to result from increased competition in the managed care market.
Originality/value
Prior research has shown that conformity to social norms is important for MCO performance. However, this is the first study to examine the whether the importance of conformity to social norms varies as a function of market competition.
Keywords
Citation
Kirby, E.G. (2006), "The impact of competition on the importance of conforming to social norms: Strategies for managed care organizations", Journal of Health Organization and Management, Vol. 20 No. 2, pp. 115-129. https://doi.org/10.1108/14777260610661510
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited