Rhetoric Paradox in Organization’s Logic Hybridization Process

Abstract

Many organizations were born in single institutional logic dominating forms, while later they incorporate extra logics and turn to hybrid (i.e., multiple institutional logic) forms. However, we know little about the challenges and managerial approach during organization-level logic hybridization process. In this study, we present a rhetoric paradox in lone-founder firm’s familization process, during which an entrepreneurial logic dominating organization transit to entrepreneurial-family hybrid form. Our findings suggest lone-founder firm’s familization transition leads to both internal (i.e., greater turnover rate of top managers) and external destabilizations (i.e., lower recommendation score rated by security analysts). Organization’s socioemotional wealth rhetoric, which stand for typical family logic, plays paradoxical roles. It likely mitigates external destabilizations while intensifies the internal ones, vice versa. The above findings enable us to declare contributions to institutional logic (hybrid organization), entrepreneurship and family firm literature.