Building Relationships Between a Market Logic and Multiple Logics in Complex Institutional Settings

Abstract

Research in institutional logics tends to neglect to emphasize how logics relate to one another when enacted by interacting actors. We explore how variants of a market logic enacted by private firms relate to an array of public sector logics when the firms aim to commercialize innovative welfare solutions in healthcare. Two findings are obtained: First, conflicting or convergent logics relationships are continuously built between a market logic and different public sector logics. Second, the logics relationships influence the firms’ space for actions: Where some firms focus on commercializing in their home market other firms shift focus to international markets depending on whether their market logic has a convergent or conflicting relationship with public sector logics in their home market. The findings contribute to institutional logics theory by refining our understanding of how different relationships between logics develop continuously and enable actors to take different forms of actions.