SUMMARY
Traditional research on strategy has emphasized heterogeneity in strategy through such concepts as competitive advantage and distinctive competence. Yet firms often demonstrate homogeneity in strategy. This paper suggests that institutional forces inherent in interorganizational networks generate isomorphic process that can cause firms to pursue similar strategies. A study of firms that supply component parts and systems to auto manufacturers was performed to determine if dependence and coercive isomorphism can lead to homogeneity of strategy. Results indicated that greater firm dependence did seem to cause firms to exhibit greater homogeneity in strategy. Implications for research and practice are discussed.