Neo-institutionalism is a theory which argues that societies have templates of formal and informal rules, values and acceptable ways of behaving; and that organisations in those societies fit in with, and organise themselves to fit in with, those institutional templates. The technical name for this process is isomorphism.

Can the story of Parmalat be interpreted using this theory? Can it be argued that Parmalat’s way of operating by keeping local politicians and others happy reflected the institutional world of a small company in Italy in the 1960s, but that it was too risky to sustain when Parmalat had become a huge multinational corporation?