Assessing the Impact of Governmental Regulations on the IT Industry: A Neo Institutional Theory Perspective

Abstract

Given the recent monumental events including the September 11th attack on the World Trade Center and the Pentagon as well as the Enron and MCI WorldCom debacles, people have witnessed, and more readily accepted, a significant increase in governmental authority, leading to a dramatic upsurge in the number of governmental regulations imposed on business organizations and society. Neo institutional theory suggests that such significant institutional forces may gravitate an otherwise highly disparate IT industry towards industry wide homogenization.