Institutional Complexity and Organizational Responses

Organizations face institutional complexity whenever they confront incompatible prescriptions from multiple institutional logics. Our interest is in how plural institutional logics, refracted through field-level structures and processes, are experienced within organizations and how organizations respond to such complexity. We draw on a variety of cognate literatures to discuss the field-level structural characteristics and organizational attributes that shape institutional complexity. We then explore the repertoire of strategies and structures that organizations deploy to cope with multiple, competing demands. The analytical framework developed herein is presented to guide future scholarship in the systematic analysis of institutional complexity. We conclude by suggesting avenues for future research.

How is the complexity of contemporary professional work and services organized differently by management at the strategic level and professionals at the operational level? And what are the implications for managing this complexity? Drawing on literatures on institutional complexity, organizational roles and the analyses of case study data from interviews, observations and documents at a large public service provider in Norway, this article advances the understanding of management in complex organizations and makes the following three contributions to the institutional logics literature. First, we show how multiple institutional logics have different functions at strategic and operational levels, resembling a dynamic interplay in organizing professional work and services. Second, we show how these differences in handling multiple logics are contingent upon the different roles of the strategic managers and operational professionals. Finally, we advance the understanding of what institutional complexity may involve in organizations by disclosing how the significant conflicts stem not only from the presence of multiple logics, but also from differences within the organizations in how multiple logics are handled. Our findings have implications for the planning and management of organizational design and implementation strategies and demonstrate the utility of the institutional complexity perspective for managing complexity in contemporary organizations.

Following unique logics despite institutional complexity: An inductive study of academic inventors and institutional logics

Professional sport teams operate within an increasingly complex institutional environment and are required to often confront incompatible prescriptions from multiple institutional logics, such as performance and commercial goals (i.e., business logics) relative to community development and altruistic goals (i.e., social logics). The aim of this research is to investigate the influence of institutional complexity on managers perceptions of community-oriented practices across 12 professional teams within a single Australian sport league. Using Raynard’s (2016) configurations of institutional complexity, we identify two types of hybrid responses that professional teams utilise to address multiple logics: aligned and segregated. When community managers perceived social logics to be aligned with business logics, community activities were more aligned with commercial organisational outcomes such as brand, fan and sponsorship benefits. Alternatively, when managers perceived social logics to be segregated from business logics, community activities were more autonomous from commercial drivers, allowing a greater focus on community development outcomes including education, health and increased trust. Theoretically, our research adds to institutional logic scholarship by showing that multiple logics can be compatible with each other, central logics influence peripheral logics and organisational responses to institutional complexity can vary within a professional sport league.

Institutional pluralism is an intriguing phenomenon for institutional scholars. How the balance among logics evolves within a field and what kind of trajectories a set of logics may experience over a long-term period remain unclear. In particular, extant literature tends too often to downplay institutional complexity by focusing on two dominant logics, and to ignore modes of interaction among logics other than competition. In order to address these issues, we offer a novel methodology for measuring institutional complexity – multiple institutional logics and their change. In particular, we highlight the utility of descendent hierarchical classification models, and demonstrate their relevance by analyzing articles published in a leading French trade journal over more than 100 years to study logics related to workplace in the construction industry. We identify a pool of six field-structuring logics over a period of one century; they reveal the composite nature of such logics, which we characterize as combining several higher institutional orders. Additionally, our results bring to light new mechanisms that can explain the composition of institutional logics.

Despite the growing trend to integrate engaged education activities in (Higher) Education Institutions ((H)EIs), their adoption responds to diverse and often conflicting rationales. These rationales are shaped by institutional logics at both the field and organizational level, and their conflicting nature is a manifestation of the institutional complexity that arises when organizations and the individuals within them are confronted with divergent prescriptions from multiple institutional logics. This study examines how engaged practitioners in (H)EIs experience institutional complexity and how they respond to such complexities. We conducted research at the intersection of field-level and organizational-level logics, and individual responses. Our findings show that engaged practitioners who initiate engaged education that follows the principles of the dominant market and corporate logics do not experience institutional complexity, and we therefore refer to them as compliers. Conversely, those whose intentionality follow the minority state logic take different roles in their response to the underlying institutional complexity. Those roles may refer to the adherence to multiple conflicting logics while keeping them apart (compartmentalizers), the (selective) combination of elements of dominant and minority logics (combiners), or the (partial) rejection of the dominant logic to protect the minority logic (protectors). The implications of our study offer valuable insights into the change process in (H)EIs concerning the integration of engaged educational processes and activities.

While many studies on external accountability forms have illustrated the impact on the prevailing conceptions and values about the nature of school organizations, still little is known about the active role of school leaders as sense-makers who deal with conflicting accountability demands. We argue that while multiple external accountability forms driven by policies often manifest in apparently conflicting ways in school organizations, recent findings suggest that some school leaders have come to understand and adapt strategically and reconcile these logics in practice over time. In this article, we seek to highlight the institutional complexity that school leaders face when attempting to make sense of, interpret reconcile and/or counterbalance competing accountability demands from multiple and incompatible logics while considering their schools’ needs and conditions. We develop a conceptual framework that unpacks the intersection of the institutional complexity triggered by multiple institutional logics and school leaders’ sense-making about reform. This framework could illuminate how and why the multiple logics in the institutional environment shape and are being shaped by school leaders’ sense-making in the complex policy implementation processes that lead to different policy outcomes.

Drawing on a study of three public science funding organizations in Ireland, Finland and New Zealand, we investigate the implementation of talent management (TM) through the lens of institutional complexity and paradox theory. Multiple institutional logics and institutional complexity create tensions, which TM actors must respond to and manage. We identify an important interplay of four institutional logics with the dominance of the professional logic acting as a unifying function to respond to tensions in TM implementation. We add to the emerging literature on day-to-day responses to competing institutional logics and public sector TM.

The organization needs to effectively deal with the institutional environment challenges to secure legitimacy and achieve sustainable development. Due to some problems such as holding the isomorphism hypothesis, ignoring the organizational micro-level dynamic role, underestimating the degree of institutional complexity, the explanatory power of traditional institutional theory is weak in the context of the increasingly complex institutional environment. Therefore, the research on organizational responses to institutional complexity has gradually become a hot topic of scholars’ attention. Firstly, based on the evolution of theoretical understanding, this paper puts forward the quantity–content–time” framework of the institutional complexity connotation analysis, emphasizing the number of institutional logics”, the interactive pattern of institutional logics” and the dynamics of institutional complexity” are the core content dimensions of institutional complexity. Secondly, based on the key influencing factors of the organizational response behavior, this paper presents the structure–situation–person–time–location” framework of the institutional complexity response strategies analysis. Then, this paper analyzes the typical application scenarios of institutional complexity response research, including hybrid organizations, complex and dynamic organizational fields. This paper further points out the key differences to be considered in Chinese context application, including the overall characteristics difference of the institutional complexity, the government and the market both strong and coexistence, both change and interaction” to bring a unique impact, the organizational response behavior rooted in the unique social and cultural environment, the complexity and dynamics of the fields are more significant in the transitional environment. Finally, based on the above analytical frameworks, this paper constructs a theoretical model of organizational responses to institutional complexity and proposes some prospects for future research. The model emphasizes that the institutional complexity research should focus on the complexity connotation, localization characteristics and typical application situations, organizational response behavior research should focus on response strategies, response heterogeneity, response levels and response ambidexterity, and organizational response outcomes research should focus on the relationship between response behaviors and organizational legitimacy, organizational changes or innovations, institutional changes or innovations, and fields changes. This research will help to deepen the theoretical understanding of the emerging concept of institutional complexity and help to systematically sort out the types of response strategies and develop new strategies. Meanwhile, it also points out the direction for the connotation analysis, feature identification and response research of institutional complexity in the context of emerging markets and transition countries represented by China.

Police performance is not easily measurable and the organization and circumstances of police work vary among European countries. Further, police work is surrounded by multiple pressures to make it both economical and effective. Consequently, there are multiple institutional logics in decision-making which may affect the selection and the use of police key performance indicators (KPIs). The KPI selection and use processes reflect the institutional logics, though KPI use may also sometimes influence the institutional logics of police work. In this study, we analyze the KPIs and institutional logics in police work in Finland and Spain. A comparative case research approach is used in order to highlight the differences in institutional logic emphases and in circumstances. Data from semi-structured interviews, internet reports, project work, and discussions are used. Both similarities and differences in the KPIs and in the institutional logic emphasis are found between the Finnish and Spanish police. Understanding the partly general and partly locally constructed nature of institutional logics may facilitate the development of police work performance measurement. We also suggest ways of coping with multiple institutional logics. For example, risk analyses and selecting KPIs against the current institutional logic may facilitate organizational developments.

To analyse institutional logics' role in adopting virtual reality in mental health care. Data were collected via qualitative, semi-structured interviews with four frontline staff and seven administrative and service staff, two focus group interviews with three frontline staff and four administrative and service staff, and via participant observation in meetings between stakeholders working on virtual reality. Data were collected from May 2021 to February 2022, analysed using thematic analysis, and theoretically driven by the framework of Institutional logics. We identified two different forms of institutional logics being drawn upon by frontline staff and administrative and service staff, respectively, when working with the adoption of virtual reality in mental health care. Frontline staff drew mainly on a Professional logic; administrative and service staff drew on a Diffusion logic. Each logic defined a unique focal point, causal pathway, and perceptions of a meaningful adoption process for virtual reality. By taking institutional logics as our theoretical and analytical point of departure, this study demonstrates how the meaning of virtual reality and its adoption in mental health care is grounded in multiple and sometimes conflicting institutional logics. Acknowledging the existence and influence of often multiple institutional logics in the adoption process is crucial to guide the future adoption of virtual reality in mental health care. Organising collaborative venues for stakeholders where their multiple institutional logics are made the subject of joint reflection is essential to counter frictions.

While environmental concerns are increasingly driving firms’ strategic decisions, insights into why firms make heterogeneous environmental investments are limited. Taking an institutional view, we explore the effect of institutional complexity resulting from multiple but incongruent institutional logics within an organization on firms’ environmental investments. Using China's mixed-ownership reform as a research context, we identify a unique condition in which institutional complexity arises as the privatization process results in two coexisting but incongruent institutional logics – namely, state and financial logic. We further propose that privatization plays both enabling and constraining roles in state-owned enterprises’ (SOEs’) strategic decisions about environmental investments, depending on the relative dominance of each institutional logic, resulting in an inverted U-shaped relationship between privatization and environmental investments. Moreover, we examine the moderating effects of CEO background characteristics and firms’ external environmental context to uncover how these factors influence the relative dominance of state or financial logic in privatized SOEs, thereby reshaping SOEs’ environmental investments. Analyses of multisource panel data from Chinese listed SOEs from 2013 to 2020 support our theoretical propositions. The findings contribute to the literature on how institutional factors affect firm environmental practices and provide new insights to better understand the influence of institutional complexity on firm strategic actions.

This study has been carried out to reveal what kinds of mechanisms have been used in the management of institutional complexity in the Turkish electricity sector where multiple institutional logics have been effective since 2001. In this study, especially, it has been shown that how companies has coped with the conflictual demands of the environmental, public and market institutional logics. Qualitative research methods have been used in the study. An answer to the research question has been produced with the data collected from 2 companies in the Cukurova Region of Turkey. The data has been collected with face-to-face interviews and document examinations. The research results have indicated that the organizations have used grafting, hybridization, and bridging mechanisms.

This double volume presents state-of-the-art research and thinking on the dynamics of actors and institutional logics. In the introduction, we briefly sketch the roots and branches of institutional logics scholarship before turning to the new buds of research on the topic of how actors engage institutional logics in the course of their organizational practice. We introduce an exciting line of new works on the meta-theoretical foundations of logics, institutional logic processes, and institutional complexity and organizational responses. Collectively, the papers in this volume advance the very prolific stream of research on institutional logics by deepening our insight into the active use of institutional logics in organizational action and interaction, including the institutional effects of such (inter)actions.

PurposeThis article aims to increase the understanding of the role of individual actors and arenas in dealing with multiple institutional logics in family firms.Design/methodology/approachThis study follows a case-study approach of two family-owned newspaper companies. Based on interviews and secondary sources, the empirical material was analysed focussing on three institutional logics, that is, family logic, management logic and journalistic logic.FindingsFirst, the authors show how and in which arenas competing logics are balanced in family-owned newspaper companies. Second, the authors highlight that family owners are central actors in the process of balancing different institutional logics. Further, they analyse how family members can become hybrid owner-managers, meaning that they have access to all institutional logics and become central actors in the balancing process.Originality/valueThe authors reveal how multiple institutional logics are balanced in family firms by including formal actors and arenas as additional lenses. Therefore, owning family members, especially hybrid owner-managers, are the best-suited individual actors to balance competing logics. Hybrid owner-managers are members of the owner families who are also skilled in one or several professions.