Abstract
Marketization—the entry of the market logic into a field originally insulated from it—is a transformative force that has reshaped many fields, including education, health care, the arts, and religion. Marketization brings a unique set of challenges for established organizations: it opens a field to market-style mechanisms of consumer choice and competition, which undermines the legitimacy of established organizations, and it creates contradictory demands for organizational actions. How can established organizations adapt to marketization? To answer this question, the authors study the adaptation of five established religious schools to the marketization of education in Brazil. They develop the novel hybridization strategy of nested coupling and explain that established organizations respond to marketization by balancing competing demands for differentiation and conformity. The authors show how religious schools nest the market logic within the religious logic by reconfiguring their resources to conform to market demands while differentiating themselves through their religious orientation. Nested coupling provides a novel strategic approach for established organizations in marketized or marketizing fields, such as hospitals, museums, and schools, to capitalize on a logic that preexists marketization and to create a unique competitive positioning in the market.
Highlights
Marketization—the entry of the market logic into a field originally insulated from it—is a transformative force that has reshaped many fields, including education, health care, the arts, and religion
Established organizations facing marketization need to respond to a unique set of challenges, but prior work does not provide guidance on how they can do so. To resolve this gap and answer our research question, we study the adaptation of five established religious schools to the marketization of education in Brazil
We develop a novel hybridization strategy—nested coupling—that explains how established organizations respond to the market logic by transforming their resources to create value for customers and differentiate themselves while minimizing internal conflicts
Summary
Educational praxis Develops spiritual, intellectual, and Develops cognitive skills and moral. Sources of Religious affiliation and recognition State recognition, educational experts and School rankings, cost competition, authority by a religious authority pedagogical consultants, policy makers differentiation, customer needs. Principals, managers, school Consultancy firms, private enterprise ministers, and religious boards, policy makers managers as school managers educators. CBased on work on marketized education (e.g., Baltodano 2012; Molnar 1996). Integrating the market logic is problematic, though, because its prescriptions contradict those of the preexisting logic. These contradictions can elicit internal tensions, which vary depending on the compatibility of prescriptions and whether they are managed in the organizational core or periphery.
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