Abstract
This article explores how competing institutional logics are incorporated and maintained in a shadow institutional field. Relying on a qualitative case study, we investigated the counterfeit luxury industry in Guangzhou, the most renowned counterfeit business hub in China. We show that, instead of organizations managing competing logics internally, as the previous literature suggests, the competing institutional logics were incorporated through a special field structure and associated practices, and maintained by consistent legitimacy work. This study further illustrates how a shadow institutional field can survive and thrive under legal pressure by carrying out innovative practices, which established business could learn from and apply in their formal business.
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