Read the following passage:
In analyzing the organizational evolution of modern universities, institutional theorists frequently employ the concept of mimetic isomorphism—the propensity of organizations to imitate the structures of perceived successful peers under conditions of uncertainty. While coercive isomorphism accounts for some structural homogenization, theorists argue that mimetic isomorphism is the primary catalyst for the exponential growth of non-academic administrative divisions. Confronted with intrinsically ambiguous institutional mandates, universities lack quantifiable metrics for operational efficacy. Consequently, they replicate the elaborate administrative hierarchies of elite institutions, instituting specialized bureaus regardless of localized utility. Under this framework, the proliferation of administrative roles is not a rational optimization of resources, but rather a performative adaptation designed to project institutional legitimacy to external stakeholders. Therefore, policies attempting to reverse administrative bloat exclusively through severe economic austerity are destined to fail, because the institutional imperative to signal legitimacy operates orthogonally to resource constraints.
Evaluate the following statement based on the passage:
The conclusion that economic austerity policies are destined to fail relies on the underlying assumption that a university's imperative to signal institutional legitimacy is strong enough to override threats to its financial solvency.
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